Three stocks to watch closely (potential gap fills)

I'm purely a price guy.

So I want to talk to you about a group of stocks that have some opportunities.

TWTR:

Twitter has been changing between $30-$50 for about six months, with a pivot around $40. A breakout above $40 targets $50. For the last two months, it's been trading from $35-$40. There's a gap above that at $43. And it's not a matter of if gaps get filled. It's a matter of when.

If this stock even gets to $50, the breakout technical target right now, an option that we take right now, roughly doubles in value. So it's about risk/reward. My Elite Money indicators are showing me that there's potential for a short squeeze as well.

Now, a lot of things might happen in the headlines about TWTR. But that's why I follow price, not news. The range we're in has the potential for a lot of movement upwards.

CSCO:

Cisco has a nice bottom base in place. It's been trading between $30-$60 for the last five years, and $45, our current price, is an important midpoint pivot. Plus, as we saw with TWTR, there's a gap up above that, and we expect those gaps to be filled eventually.

There's another opportunity here to buy an October dated call and let the risk/reward work in your favor.

Bonus Tip:

Stocks are a function of earnings. Earnings have continued to grow. Stock prices have dramatically dropped. The P/E ratio has improved dramatically. So stocks, in relative terms, are extremely cheap right now. Corporations continue to make exponential amounts of money. So the stock market, in my opinion, will catch up eventually.

AA:

I'm not a fundamental guy, but the P/E ratio for AA is 4.0. That's shockingly low based on the numbers we've tended to see in the market lately. Plus, there's a gap at $55 we're waiting to fill:

This is another stock to look at for a potential October option.

There's a look at three stocks I'm paying close attention to right now, plus a bonus tip for your general outlook.

I hope you find it helpful.

Best wishes,

P.S.: I do think the market is in a good spot, but that doesn't mean we're completely out of the woods. Folks are worried right now, but I'm focused on these cheap options trades that cost as little as $0.50 per contract. We just closed a winner this week, and the track record itself is incredible. Check it out.

HIGH RISK WARNING

Trading foreign exchange, stocks, options, or futures on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade, you should carefully consider your objectives, financial situation, needs and level of experience. Classified Intelligence Brief provides general advice that does not take into account your objectives, financial situation or needs. The content of this website must not be construed as personal advice. The possibility exists that you could sustain a loss in excess of your deposited funds and therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. You should seek advice from an independent financial advisor. Past performance is not necessarily indicative of future success.

Three stocks to watch closely (potential gap fills)

0 Response to "Three stocks to watch closely (potential gap fills)"

Post a Comment