#$aet

Aetna, $AET, made a high with the market in January and started to pullback.  It paused as it hit the 100 day SMA and then resumed lower, finding support at the 200 day SMA in March.  A bounce in April failed and it fell back to the 200 day SMA in May.  But since then it has been moving higher, first breaking the April high, then testing the January high and pushing through.  It ended last week with a new all-time high after a 6 day uptrend.

The RSI is bullish and rising, just barely into technically overbought territory.  The MACD is flat after a pullback, and avoiding a cross down.  The Bollinger Bands® are generally angled higher but flattening at the top.  There is still room to move higher within them though.  There is no resistance above, and a Measured Move would give a target on this leg to 210.  Support lower comes at 200 and 196.60 then 194 and 192.  Short interest is low at 1.5%.  The company is expected to report earnings next on October 29th and will likely declare a dividend in the range of about 1% annually just before that.  

Looking at the options chains shows the September monthly with very large open interest at the 185 put strike.   October options have the biggest open interest at the 180 and 175 call strikes.  The January options are the first that cover the next earnings report and they show massive open interest below at the 150 strike on the put side with large size also at the 180 strike and bracketed at 170 and 190.  Calls are biggest at the 195 and 200 strikes but much smaller.

Aetna, Ticker: $AET

Trade Idea 1:  Buy the stock now (over 200) with a stop at 196.

Trade Idea 2:  Buy the stock now (over 200) and add a September 200/190 Put Spread ($2.30) selling the October 12 Expiry 207.50 Calls ($2.00) to pay for the protection.

Trade Idea 3:  Buy the September/October 12 Expiry 205 Call Calendar ($1.70).

Trade Idea 4:  Buy the January 210/220 Call Spread ($2.25) and sell the October 185 Puts ($1.00).

After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with eight months in the books and the long Labor Day Weekend upon us sees the equity markets are waking up tanned and rested from their summer vacation.

Elsewhere look for Gold to possibly pause in its downtrend while Crude Oil resumes the path higher. The US Dollar Index is searching for support in a pullback while US Treasuries are in broad consolidation. The Shanghai Composite and Emerging Markets are biased to the downside with the former on the cusp of new 4 year lows.

EARNING UPDATE $AET Aetna Inc. for quarter ending q_Jun18 – Revenue rose but Margins contracted

[s2If !current_user_can(access_s2member_level0)]Please login to read the earning update on AET [lwa][/s2If][s2If current_user_can(access_s2member_level0)]Aetna Inc. reported earnings (EPS) of 3.67 per share for the quarter ending q_Jun18. This is vis-vis 3.67 per share for the previous quarter ending q_Mar18, a growth of 0 %. Compared to last year same quarter (q_Jun17), earnings grew from 3.60…

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

Aetna, Ticker: $AET

Aetna, $AET, accelerated to the upside in October and then slowed the pace but trended higher until a top in January. It pulled back in 2 steps to the 200 day SMA where it found support at the beginning of April. A bounce topped later that month and then it fell back to the 200 day SMA again. It has moved back higher recently, to the prior top at the end of the week. The RSI is rising and bullish with the MACD positive and moving up. Look for a push through to a higher high to participate.....

Bristol-Myers Squibb, Ticker: $BMY

Bristol-Myers Squibb, $BMY, fell from a top in February and accelerated when it broke support and the 200 day SMA in April. It started to stabilize as it turned to May and has now identified resistance above. The RSI is rising at the mid line with the MACD about to turn positive. Look for a push over resistance to participate.....

Graco, Ticker: $GGG

Graco, $GGG, started higher in August last year, consolidating for a month in November and then rising gain to a top in January. It fell fast from there, and bounced off of the 200 day SMA. Since then it had stalled on moves higher 3 times before breaking through to a higher high at the end of last week. The RSI is rising in the bullish zone with the MACD moving up and positive. Look for continuation to participate.....

3M, Ticker: $MMM

3M, $MMM, peaked at the end of January and then quickly fell back to its 200 day SMA. It bounced from there to a lower high and consolidated for a month, but then fell back again, this time to a lower low in April. It consolidated again, under the 200 day SMA, and then resumed the path lower to a bottom in May. That is when it started to turn. Following another bounce it pulled back to a higher low, and then reversed and is now making a higher high. The RSI is rising toward the bullish zone with the MACD about to go positive. Look for a break into the gap to participate.....

Raytheon, Ticker: $RTN

Raytheon, $RTN, rose out of a consolidation at the end of 2017 to a top in April. It pulled back hard over less than two weeks, breaking prior support, and then bottomed in early May. The reversal from there rose back over prior support and has been consolidating under resistance since. The RSI is rising toward the bullish zone while the MACD has crossed to positive. Look for a push over resistance to participate.....

After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which heading into the FOMC June meeting and monthly Options Expiration sees the equity markets looking strong.

Elsewhere look for Gold to continue to consolidation around 1300 while Crude Oil consolidates after pulling back. The US Dollar Index looks to continue lower while US Treasuries are biased lower in broad consolidation. The Shanghai Composite is consolidating at 52 week lows and Emerging Markets remain in a pullback in the uptrend.

Aetna, $AET, built an ascending triangle from the beginning of November through to the beginning of May.  The sixth touch was the charm and the price broke above the triangle.  This gives a target to 165 to complete the pattern.  It also has a target to 158 to complete a 3 Drives pattern.  When two patterns line up like this it add more power behind the stock.

Momentum also supports a move higher.  The RSI is turning back up in the bullish zone while the MACD is leveling after a short pullback and positive.  There is resistance above at 145 and then free air to the targets.  Support lower comes at 139 and then 134.50 before 125.  Short interest is low at 2.8%.  The company is expected to report earnings next on August 3rd.

The options chain for this week shows a large open interest sitting at the 148 call strike above.  But next week the biggest open interest is at the 140 call.  June monthly open interest is centered on the 140 strike with some size at 145 on the call side as well.  July open interest is also focused below, biggest at 140 and then sizable down to 125.  Finally, the October chain, the first that covers the next earnings report, is much lighter but with the biggest open interest below.  Options players do not see a lot of long term upside.

Aetna, Ticker: $AET

Trade Idea 1:  Buy the stock now (over 139) with a stop at 137.50.

Trade Idea 2:  Buy the stock now (over 139) with a June 140/135 Put Spread ($1.43) to protect and selling the June 145 Call ($1.12) to help fund the protection.

Trade Idea 3:  Buy the July 135/145 bullish Risk Reversal (67 cents).

Trade Idea 4:  Buy a June/October 145 Call Calendar ($4.58) and sell the June 135 Puts (68 cents).

After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with May Options Expiration in the rearview window allowing traders to look toward the Memorial Day Weekend and official kick off of the flight to the Hampton’s each Friday.

Equities head into the summer doldrums firm on the longer time frame but a little shaky short term. Elsewhere look for Gold to continue to trend higher while Crude Oil retains an upward bias in consolidation. The US Dollar Index is sick and looks to continue lower while US Treasuries continue their consolidation.

The Shanghai Composite is also in consolidation mode while Emerging Markets are biased to continue to the upside. Volatility looks to remain low keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts all show consolidation in strength in the longer term, with the QQQ joining this week. In the shorter term there is some minor damage to repair that begun Thursday. Use this information as you prepare for the coming week and trad’em well.

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

Aetna, Ticker: $AET

Aetna, $AET, started higher from its 200 day SMA in February. It rose until it reached the prior high from December and then started a pull back. That met the 50 and 100 day SMA's last week and found support. Friday saw a turn to the upside suggesting a possible reversal. The RSI is turning back up in the bullish zone while the MACD is starting to level as it falls. Look for continuation higher to participate in more upside.....

Great Plains Energy, Ticker: $GXP

Great Plains Energy, $GXP, rounded out of a pullback in February and started higher. It stalled as the calendar turned to March and has consolidated since. Friday saw it move back to the top of consolidation. The RSI is moving back higher in the bullish zone while the MACD is trying to turn back and cross up. Look for a push through consolidation to participate to the upside.....

Hartford Financial, Ticker: $HIG

Hartford Financial, $HIG, has been in a mainly sideways motion since December. Reaching a peak in Mid-March, it fell hard and fast, finding support around 46.50. Last week it rounded up out of that support, suggesting a reversal. The RSI is about to push through the mid line while the MACD is heading for a cross up. Look for continuation to participate to the upside.....

Louisiana-Pacific, Ticker: $LPX

Louisiana-Pacific, $LPX, broke up out of a flat consolidation in February. After a quick move higher it fell back into consolidation and has been there for the last 6 weeks. Friday saw a move to the top of the range with the Bollinger Bands® opening to allow a move higher. The RSI is rising in the bullish zone with the MACD trying to cross up. Look for a break over resistance to participate higher.....

Newfield Exploration, Ticker: $NFX

Newfield Exploration, $NFX, started pulling back in December and after two steps down, found support in March. It confirmed a double bottom reversal last week and is now at the top of that consolidation range. The RSI is back over the mid-point and rising while the MACD is crossed up and rising, approaching positive levels. Look for a push over the resistance level to participate higher.....

After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the first Quarter in the books, saw equity markets trying to brush off the recent pullback and start higher.

Elsewhere look for Gold to consolidate in the short run while Crude Oil continues higher. The US Dollar Index looks better to the upside for the coming week while US Treasuries remain in their consolidation range. The Shanghai Composite looks to continue to drift higher, trying to separate with long term levels and Emerging Markets continue to move higher.

$AET - 3.2.2017 entry analysis

Setup: below ATH Flip combined with base Flip (described in the post about my Flip strategy)

Long-term view: In 2015 it finished its huge uptrend and since then we’ve seen a 1,5 years long correction in time, rather than in price. After ranging this long, price tested the prior uptrend trendline and then exploded higher to attack the ATH.

Price action: Price violated the weekly upper band on huge volume, signaling strength to the upside. Then pulled back to to the prior range upper edge around 125 but continued lower with the whole $XLV sector. It stopped at a not that clear S/R level, which however, acted as a resistance many times in 2015 and in early 2016. That large volume breakdown of 125 was followed by a double bottom at the daily lower band and a strong reversal price action. At that moment, price also broke the trendline. That failed breakdown and an immediate turn is a very strong signal.

Entry signal: Because this pullback was deeper than I expected, I needed to see a close above the trendline (that’s why the blue color). I didn’t want to be aggressive this time. The trendline cuts through the wicks, but for me, closes are more important. When price closed above the trendline on large vol, I just set my stop order above its high and got filled 2 days later.

"To Doctor Hugh Martin

(From) Verplank's Point October 20, 1782

Sir, I have received and thank you for the two Copies of your narrative of a discovery for the cure of Cancers; one of which argeeably to your request I have transmitted to Mrs. Washington. The discover is as beneficial to mankind as it would be regretted by them, if the secret, being only known to one man, should die with him. I am, Sir, &c. G. Washington"

JANUARY 14, 2017

You can not make something great again, that was never great to begin with.

The above letter from George Washington to Dr. Hugh Martin was written eight years and two months before he was elected president. Washington wrote several letters to the doctor at Fort Pitt, during the American Revolution, to help his mother ailing from breast cancer.

Hugh Martin, the doctor at Fort Pitt, thought he had an effective medicine for cancer. However, back in 1782 things were slightly different. Twitter had not been invented yet for one.

There were disorders that are now considered simple, that struck towns and claimed hundreds of lives. Though medicine has advanced, in regards to several devastating diseases some are nearly as incurable today as they were in 1782.