Monday, January 7, 2019

Watchlist Update: CTSH, CREE, GE, ROKU

In a market that is too unstable for trading, different to what we are used to in Wall Street, intelligent alternatives are the day or swing trades: short, powerful and effective, to avoid the market volatility. In these cases, it's enough a basic technical analysis (that is, moving averages, support and resistance levels, Ichimoku clouds, trendlines, volume, candlesticks) to forecast stock movement, with certain success.  Let's see some stocks of my January watchlist, ideal for short-term trades.

Cognizant Technology Solutions CTSH, $63.54

In its 10-minutes chart its clear that CTSH price has many sessions trying to pass the $63.90 level, that is turned now in a powerful short-term resistance. I put an alert in that level, and wait until price breakout this level for applying a day-trading strategy, for example, the ADX-Ichimoku, explain here.

Cree CREE, $42.58

In my main watchlist since October, CREE today overcome moving averages 50 and 100, and Ichimoku cloud. Technically, next level SMA200 and more volume are my signs for entry long. An agreement today with ST Microelectronics, on multi-year silicon carbide wafer supply can help next days in its bullish trend. Long.

General Electric GE, $8.61

After a catastrophic 2018 that took its price to historical minima, GE began a strong upward correction (almost 25% since the end of December), surpassing today (+ 6%) its SMA50 and approaching the Ichimoku cloud. Good news helps today:  reports of a buyout of its GE Capital Aviation Services unit by Apollo Global Management. The sale of the business would allow the company to deal with its ballooning debt load, a key to maintaining the company's much-protected, although diminished, dividend and preventing a junk credit rating. Long.

Roku ROKU, $42.50

I'm long in ROKU since my tweet of January 2th. in which I believe it outlines as an alternative to Netflix. Today skyrockets +25% on news that for its fourth quarter, its active accounts and streaming hours on its platform were up 40% and 68% year over year, respectively. Technically, it's overcoming the SMA50, approaching next level in SMA200 and Ichimoku cloud, a probable exit. Due to its high volatility, I use here a tight stop loss in my trades. Long.