#$esrx

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

Anthem, Ticker: $ANTM

Anthem, $ANTM, started to climb higher in October last year. It met resistance along with the market in January and pulled back. For 4 months it consolidated and then in June started to move higher again. It began to consolidate in August and is now pressing against the top of the consolidation range. The RSI is rising in the bullish zone and the MACD flat after a pullback. Look for a new high to participate in the upside.....

Express Scripts, Ticker: $ESRX

Express Scripts, $ESRX, pulled back from a high in January and then went through a 6 month consolidation. In August it started to move higher before consolidating late in the month. It started higher out of that consolidation two weeks ago and is now moving higher again. The RSI is strong in the bullish zone with the MACD flat and positive. Look for continuation to participate higher.....

Edwards Lifesciences, Ticker: $EW

Edwards Lifesciences, $EW, started higher from a pullback to its 100 day SMA at the end of April. That move finished with a double top into July and then it gapped down. The stock price has been consolidating ever since, until Friday. That is when it pushed over resistance. The RSI is rising ad bullish with the MACD rising and crossing to positive. Look for continuation to participate higher.....

Graco, Ticker: $GGG

Graco, $GGG, got smacked down hard after making a January high. After touching its 200 day SMA it bounced up to resistance at a lower high and consolidated for 3 months. In June it broke to a higher high and has been consolidating under that peak ever since. Last week ended with it back at resistance with the RSI rising in the bullish zone and the MACD lifting higher. Look for a push through resistance to participate to the upside.....

Raytheon, Ticker: $RTN

Raytheon, $RTN, topped out in April and then dropped like a crashing plane. It bounced into May, topping at a lower high and then fell back again, to a lower low. Since then it has consolidated in a tight range, with a 1 day exception, under resistance. The RSI is pressing against the edge of the bullish zone and the MACD is crossed up and rising. 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 September Options Expiration week sees the equity markets have regained some swagger.

Elsewhere look for Gold to consolidate in its downtrend while Crude Oil continues to drift higher. The US Dollar Index looks to continue to mark time while US Treasuries head lower in broad consolidation. The Shanghai Composite remains weak and looking for support while Emerging Markets may be finding some footing after a long downtrend.

EARNING UPDATE $ESRX Express Scripts Holding Company for quarter ending q_Jun18 – Revenue grew, Margins expanded

[s2If !current_user_can(access_s2member_level0)]Please login to read the earning update on ESRX [lwa][/s2If][s2If current_user_can(access_s2member_level0)]Express Scripts Holding Company reported earnings (EPS) of 1.55 per share for the quarter ending q_Jun18. This is vis-vis 1.10 per share for the previous quarter ending q_Mar18, a growth of 40.9 %. Compared to last year same quarter (q_Jun17),…

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

Anadarko Petroleum, Ticker: $APC

Anadarko Petroleum, $APC, started higher in September. It gapped up later in the month and then consolidated through December before a second move higher to a top in January. It pulled back to its 50 day SMA then and has consolidated around there since. Friday it pushed up to a new high to end the week. The RSI is holding in the bullish zone and the MACD is rising and positive. Look for continuation to participate higher.....

CF Industries, Ticker: $CF

CF Industries, $CF, started higher in May last year, moving up with pullbacks along the way to a top in March. It pulled back from there and tested the 200 day SMA, holding and consolidating since. The RSI is rounding up to the mid line with the MACD crossing up and moving higher. Look for a push over consolidation to participate higher.....

Cigna, Ticker: $CI

Cigna, $CI, had a long run higher to a top at the end of January. It gapped down and continued lower into March finding support until a second gap down in March. This found support and consolidated until the end of last week. That is when it broke the consolidation to the upside. The RSI is rising and making a higher high as it approaches the bullish zone, while the MACD is also rising toward zero. Look for continuation to participate higher.....

Express Scripts, Ticker: $ESRX

Express Scripts, $ESRX, had a long trend lower before morphing into a consolidation from May through December last year. Then it continued higher, reaching a top in January. It pulled back from there but quickly found support and reversed higher. It gapped up to a higher high in March but could not hold it and fell back quickly to a lower low. That move found support at the 200 day SMA and is now moving higher again. The RSI is moving up toward the bullish zone and the MACD is crossed up. Look for a push over recent resistance to participate higher.....

Intercontinental Exchange, Ticker: $ICE

Intercontinental Exchange, $ICE, has a multi-year trend higher. But recently it has created a possible double top with the failure to push higher in March. The pullback to just under the 100 day SMA shows support where it has held 3 times before, the lone exception the prior drop to the 200 day SMA. Now it is consolidating under resistance with the RSI at the mid line and the MACD crossing up. Look for a push through resistance 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 as we head into April options expiration saw the equity markets poke above consolidation in a signal of strength but had trouble holding it Friday.

Elsewhere look for Gold to consolidate with a bias higher while Crude Oil continues its run higher. The US Dollar Index continues to move sideways while US Treasuries consolidate with a bias higher. The Shanghai Composite and Emerging Markets look to continue to consolidate, with the Chinese market near lows and Emerging Markets at highs.

EARNING UPDATE $ESRX Express Scripts Holding Company for quarter ending q_Dec17 – Revenue grew, Margins expanded

[s2If !current_user_can(access_s2member_level0)]Please login to read the earning update on ESRX [lwa][/s2If][s2If current_user_can(access_s2member_level0)]Express Scripts Holding Company reported earnings (EPS) of 4.02 per share for the quarter ending q_Dec17. This is vis-vis 1.46 per share for the previous quarter ending q_Sep17, a growth of 175.3 %. Compared to last year same quarter (q_Dec16),…

Express Scripts, $ESRX, started heading lower in August 2016.  It fell along trend resistance starting in December last year and continued until it broke that trend line in September this year.  The break was short lived though and the stock fell to a lower low in October.  Since then it has moved higher and last week made a higher high as it crossed the 200 day SMA for the first time in almost a year.  It ended the week at a higher high and just short of the June peak.

The RSI is rising and bullish with the MACD rising and positive.  The Bollinger Bands® are opening to allow a move to the upside.  There is resistance at 65.80 and 67.20 followed by 69 and a gap to fill to 70.10 then 72 and 73.40 before 77.25.  Support lower sits at 62.50 and 60.20 then 59 and 56.  Short interest is moderate at 5.6%.  The company is expected to report earnings next on February 12th.  

The December options chain shows large open interest at the 62.50 and 60 strikes on the put side, with some size art 63 and 61.50 as well.  On the call side it is focused at 62.50 and 65.  In January the open interest is extreme at the 52.50 call strike, and on the call side it is biggest from 60 to 70.  The February options, the first to expire after the next earnings report, are still building with the biggest at the 55 put and the 67.50 call.

Express Scripts, Ticker: $ESRX

Trade Idea 1:  Buy the stock on a move over 66 with a stop at 63.

Trade Idea 2:  Buy the stock now (over 64) and add a December 64/62.50 Call Spread ($1.10) selling the January 70 Call (60 cents) to fund most of it.

Trade Idea 3:  Buy the December /January 65 Call Calendar ($1.10) and sell the December 61.50 Put (70 cents) to lower the cost.

Trade Idea 4:  Buy the February 60/65/70 Call Spread Risk Reversal (80 cents).

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After reviewing over 1,000 charts, I have found some good setups for the week. This week’s list contains the first five below to get you started early. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which heading into the first week of December sees the equity markets looking strong on the longer timeframe after weathering a short term shock Friday.

Elsewhere look for Gold to consolidate under 1300 while Crude Oil consolidated in its uptrend. The US Dollar Index is marking time with a bias to the downside while US Treasuries consolidate in the range in place since September. The Shanghai Composite is also moving sideways with a bias for a pullback while Emerging Markets retrench in their uptrend.

Express Scripts, $ESRX, had bounced off of support at 79.60 several times in 2014 and 2015.  At the start of 2016 it went right there again a few days into 2016.  This time it did not hold though.  It broke down to new lower lows finding support finally in February when the market bottomed.  Over the next 6 weeks it consolidated in a symmetrical triangle, breaking that to the upside, confirming a reversal higher, in April.  The stock spent several weeks retesting the break out trend line as support before finally moving higher in May.  

Friday was a big day technically on several fronts.  The move broke above short term consolidation.  It pushed the stock price past its 200 day SMA for the first time since beginning of the year.  And it closed a gap down from January.  As it sits over prior resistance the RSI is rising and bullish and the MACD is crossed up and rising.  These momentum indicators support further upward price action.  The Bollinger Bands® opened to the upside as well.  

There is resistance above at 79.60 and 81 followed by 82.25 and 84.75 before a gap fill to 85 and then 88.90.  Support may come lower at 76 and 74 before 73.  Short interest is elevated at 6.3% and the company is expected to report earnings July 26th after the close.

Options for this week show a focus of open interest at the current price, from 77.5 to 78.  But there is also some size at 75 below.  There is very little open interest for the July 29 Expiry, the first beyond the earnings date.  The at-the-money straddle is pricing an expected move of $3.25 or about 4.1% by the Friday after the report, giving a range of 74.65 to 81.20.  

A more liquid read in the August monthly options shows all of the put open interest between the 62.5 and 75 strikes, while it from 67.5 to 80 on the call side.  The take away from that is there is a slight bias lower in August options.

Express Scripts, Ticker: $ESRX

Trade Idea 1:  Buy the stock (over 77) with a stop at 76.

Trade Idea 2:  Buy the stock with a July 29 Expiry 77.5/74.5 Put Spread ($1.00) and sell a August 80 Covered Call ($1.20 credit).

Trade Idea 3:  Buy the July 22 Expiry 77.5 Calls ($1.38).

Trade Idea 4:  Buy the July 29 Expiry 77.5/80 Call Spread ($1.43).

Trade Idea 5:  Buy the July 29 Expiry 78/81 Call Spread ($1.38) and sell the July 29 Expiry 74 Put (47 cent credit).

Trade 1 is a straight stock trade with a stop loss as protection.  Trade 2 uses an options collar as protection, earnings a small credit in the process.  Trade 3 recognizes that the stock does not pay a dividend, and so seeks upside with options, limiting capital at risk.  Trade 4 looks for capped upside into the earnings report and Trade 5 adds leverage to reduce the cost, selling puts at the expected lower level of the move.  

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 July Options Expiration week sees the equity indexes are strong and looking for new highs.

Elsewhere look for Gold to continue higher but perhaps see a short term pullback first, similar to the picture for Crude Oil. The US Dollar Index looks to continue higher toward the top of the broad consolidation while US Treasuries are continue higher but with some caution as they are getting extended.

The Shanghai Composite and Emerging Markets both look better to the upside in their consolidation ranges. Volatility looks to remain subdued and possible moving lower keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts agree, with the SPY looking for new all-time highs quickly, the IWM chasing and the QQQ looking to break a range by making a new 2016 high. 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

Capital One Financial, Ticker: $COF

Capital One Financial, $COF, fell from a high near 82.50 in November last year finding a bottom in late January almost 30% lower. Since then it has moved higher in a couple of steps to a lower high in April. The pullback to support saw a minor bounce and now a retest. With the MACD falling and the RSI dropping and near a move into the bearish zone, it is time to look to participate to the downside on a break lower.....

Discover Financial, Ticker: $DFS

Discover Financial, $DFS, fell through December and January, finally finding support in February 25% lower. It ran higher from there, culminating with a gap up in April back to the November high. Since then it has consolidated with the RSI pulling back from an overbought condition and now crossing the mid line, while the MACD falls. Look for continuation lower Monday to participate to the downside.....

DuPont Fabros Technology, Ticker: $DFT

DuPont Fabros Technology, $DFT, had a strong run higher out of consolidation and a retest at the 200 day SMA in January. It stalled in April and had a minor pullback before reversing back higher. The RSI is bullish and rising and the MACD is moving up. Look for a new high to enter long.....

Express Scripts, Ticker: $ESRX

Express Scripts, $ESRX, fell hard and fast in January, breaking below long term support. It bottomed and consolidated there through mid April before jumping back higher. It failed to close the gap in April and pulled back to support. Then it bounced to a lower high, before falling back to support. The RSI is breaking below the mid line and the MACD is crossed down and falling. Look for a break of support to short the stock.....

Edwards Lifesciences, Ticker: $EW

Edwards Lifesciences, $EW, was a Top 10 idea to the long side last week. The trigger to buy never came though and the stock fell back to support. Now it is pressing on that support with the Bollinger Bands® opening to the downside and the RSI and MACD falling. Look for a break of support to short the stock.....

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 May Options Expiration sees the equity markets continuing to look weak.

Elsewhere look for Gold to consolidate in its uptrend while Crude Oil continues higher. The US Dollar Index looks to continue the bounce in the downtrend while US Treasuries are biased higher. The Shanghai Composite and Emerging Markets look better to the downside.

Volatility looks to remain subdued though keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ, despite their moves lower. Their charts look better to the downside with the IWM the worst then the SPY and the QQQ with the best chance to consolidate and reverse. 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

ConAgra Foods, Ticker: $CAG

ConAgra Foods, $CAG, made a high in August and then started a pullback. Since September it has found support at 39 several times, bouncing and then falling back. Friday ended at that level again, with a RSI falling and in the bearish zone and the MACD falling. Watch for either a bounce or continuation.

Express Scripts, Ticker: $ESRX

Express Scripts, $ESRX, fell back from a peak at 94 in July culminating with the August low under 80, where it had found support several times prior. Since then it has drifted higher, but mainly under the 200 day SMA, until the wild ride last week. That left the stock with an RSI in the oversold range and a falling MACD. Time for a bounce?

Hasbro, Ticker: $HAS

Hasbro, $HAS, pulled back to a low just before Christmas, but has been rising since. Last week saw it cross above resistance to end Friday. The RSI and MACD are rising in support of more upside. Look for a higher open to participate in more upside.

Ingredion, Ticker: $INGR

Ingredion, $INGR, had a strong move higher to a peak just under 100 into December. It has pulled back in the new year though falling hard Friday. The RSI is now in the bearish zone and the MACD is falling. Watch Tuesday to either confirm more downside or a reversal.

Syntel, Ticker: $SYNT

Syntel, $SYNT, rose up to prior resistance in December and then started the recent move lower. The initial thrust lower into mid-December was quick and since it has had a series of smaller bounces. The RSI is in the bearish zone now and the MACD is flat. Look for a break of support to participate lower.

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, closed the January options expiration and the worst two week start to a year ever, yet with equity markets looking like they are not done falling yet.

Elsewhere Gold is biased higher in its downtrend while Crude Oil consolidates in its downtrend. The US Dollar Index continues to move sideways but with an upward bias while US Treasuries are biased higher. The Shanghai Composite and Emerging Markets are biased to the downside with the Chinese market possibly ready to consolidate.

Volatility looks to remain elevated and with an upward bias keeping the bias lower for the equity index ETF's SPY, IWM and QQQ. Their charts agree and look better to the downside on both the daily and weekly timeframes. The IWM crossed into a bear market and looks the worst. The QQQ is down over 15% but still holding best over the August and September lows, while the SPY has held the closest to its all-time high but is precariously perched heading into the week. Use this information as you prepare for the coming week and trad'em well.