Holding PX since 11/8/16, and looking to hold through earnings this week which are expected to be announced before the market opens on Thursday, 1/26/17. Interesting to note some unusual option activity last week on PX, the apparent call buying of the April 125 calls on 1/19/17 and February 120 calls on 1/20/17. This could be seen as bullish speculation as the stock would have to rally approximately 3.4% and 7.7%, respectively, for each of those option trades to be profitable from its current level of 117.39. Interesting timing for the option trades as the stock has recently been beaten down on the news of the Linde/Praxair merger which was announced on 12/20/16. Prior to that, PX had been trading in the range of 122-124 for several days in mid December. Also worth noting that the option trades were placed the week prior to earnings, which is likely to be a catalyst.
From a technical standpoint, PX has looked pretty poor since the merger news and drop on 12/20/16 but has continued to show support around 115. I am interested in holding PX as long as it remains above November lows, specifically the low of 114.43 on 11/4/16. One could make a possible bullish case for a reversal in PX in January as the stock has found support at 115 on three occasions, two of which formed bullish candlestick reversal signals- a bullish harami on 1/6/17 and a bullish engulfing on 1/11/17. Who knows how it will unfold this week and what earnings will bring. Time will tell.
SGY caught my eye after Thursday’s trading session when it closed at 7.10. Had a case for a potential long- bullish candlestick, oversold stochastic, and high relative volume. Looked like if it could clear Thursday’s high of 7.40 then it could get back to 8.50 pretty soon. For whatever reason, decided not to play this one. Then SGY has a monster day on Friday, at one point up over 40% and went as high as 9.95. Wow, what a fun one to watch, but unfortunately sat on the sidelines this time.
RTK closed Friday’s session at 2.16. Not usually interested in trading a stock < 5 but the absurdly above normal volume is something to take note of. The stock traded 2.4MM shares on Friday versus a 10 day average of 175k shares. That combined with the oversold stochastic and bullish candlestick could potentially bring RTK back to 2.50 in a short time. Keeping a close eye on the 2.16 level as it closed here on Friday at the high of the day. If it makes new highs on Monday, I might be inclined to buy a partial position in the range of 2.18-2.20, targeting the 2.45-2.50 area to take profits and using recent lows as a stop.
Satisfied with the way OLLI played out exactly as expected. Bought at 29.45 on 1/10/17 on follow through from the previous day’s bullish kicker signal and sold on 1/17/17 at 31.55 for +7.1%. OLLI may continue to go higher but I chose to sell at this area because it has stalled out at 31.60 several times in the past two months (circled in blue in the image below). The bullish kicker has been working nicely as of late when combined with oversold stochastic and above average volume on a daily candle. Looking to find and trade this chart pattern in other stocks.
Was long HTZ from 1/4/17 and sold for a loss (-5.3%) on 1/18/17 as it broke below recent support. Never fun closing out a loser but happy that I stuck to my original game-plan and my position size was not too large. Mostly back to cash at this point to see how the market resolves around the inauguration and waiting for the next opportunity to present itself.