A Few Individual Stock Trades Stand Out

Plus a look at ARKK, the US Dollar, and KRE

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As mentioned in this morning’s original Opening Print, bonds have really caught my eye here.

I am curious though about if and when it will matter that the US dollar (DXY) and 10-year yields (TNX) continue to push higher. Both are at multi-month highs, yet the S&P continues to plow higher.

Even more interestingly, there seems to be a rotation out of typical safety stocks (MCD, WMT, etc.) and into growth stocks. That can be seen by yesterday’s action in ARKK, where it rallied almost 5% on its highest volume since March 31st.

Love ARKK or hate it, it’s a good proxy for growth stocks and yesterday’s daily chart gave bulls a darn good close. But it’s flying in the face of conflicting signals.

With that in mind, let’s look at the individual stock trades previously mentioned. In addition to the bonds, I’m looking at two possible longs and a short — (plus a look at KRE).

PEP

PEP is fresh off all-time highs and has given us a rapid ABC correction down to prior resistance, as well as the 10-week and 50-day moving averages. Nibbling anywhere south of or near $187 is reasonable. Less aggressive bulls can look for the tag of the 50-day.

$183-ish is a reasonable stop-loss. On the upside, I’d love to see ~$190 as the first target.

AMZN

Let’s see how AMZN handles the $113-ish level (+/- $1) as it comes into the 10-day ema and a retest of the Q1 high. That’s not unlike the UBER setup we had last week (although AMZN isn’t as strong as Uber, IMO).

$110 stop. $116+ is first target.

MET

MET is our short setup, as it tangos with the declining 10-day ema and the prior low near $52.80.

MET trades with a correlation with the banks and KRE, so as goes KRE, so goes this name to some degree.

Stop can be in the $54 to $54.50 area. $50.50 is the ideal first trim, but $51 is okay too.

KRE

Speaking of KRE, keep an eye on that $42 area, which was the initial low in March. That lines up with the declining 50-day and 10-week moving averages.

I don’t really trade the KRE, but I do use it as a barometer.

Disclaimer: Charts and analysis are for discussion and education purposes only. I am not a financial advisor, do not give financial advice and am not recommending the buying or selling of any security.

Remember: Not all setups will trigger. Not all setups will be profitable. Not all setups should be taken. These are simply the setups that I have put together for years on my own and what I watch as part of my own “game plan” coming into each day. Good luck!