Trades about to Happen February 21

“Trades about to happen” gives you trade ideas that are about to trigger. For each trade idea, i will give you the entry, potential targets, and other key information to glean from the charts.

More About “Trades about to Happen”

The idea behind “Trades about to Happen” is to keep your trading “pond” fully stocked with ideas ready to trigger so you can focus on executing trades rather than sifting through hundreds of charts to find set ups. Additionally its important to understand I am a technical trader. I do not consider fundamental factors for these set ups. If you incorporate fundamentals into your criteria, simple apply those considerations to the set ups / stocks of interest. When the fundamentals and technicals align, you should have a nice trade set up.

How to leverage “Trades about to Happen”

Not all the set-ups I provide will be appealing to you. For those you are interested in set alarms at either the level I suggest or at a level where you want to be given a “heads up” about the trade. Once your alarm triggers, you can re-focus on the stock and potential trade. Depending on your current portfolio positions, view of the market,  and a bunch of other factors you may or may not decide to take the trade.  If an alarm triggers and you don’t take the trade, re-set your alarm at a new level where you’d want to take another look.  In this way a stock won’t run away from you without you being aware.

Trades about to Happen

$GRMN  Garmin Daily

Garmin reported earnings yesterday and got a huge 17% pop. The big $8 wide bar may offer a nice opportunity for either a range breakout trade or an outright fade.  Take a look.

The Trade

Range Breakout Trade:  Alarm both side of the range. On either a breakout or a breakdown from the range, “go with” the direction of price. Above $83 get long against $83 with a stop just below.   Below $75.50 get short and look for a gap fill back to $72ish.

Fade Trade:  Because the bar is so wide at $8, I think there is a decent chance that the faders hit this.  If you see price hovering below $83 but not being able to advance or you see price begin to fall away from $83, consider getting short and fading the move.  Profit takers may very well bring this back to $75.  I looked and saw the March 80/75 Put spread to be priced around 80cents. That might be a low cost way to play.

$CCL / $RCL    Carnival and Royal Caribbean  Cruise lines   Daily

Cruise lines have been doing well. Norwegian $NCLH reported this morning and is up about $4  $CCL and $RCL charts look very productive.

The Trade

Get long $CCL against the downtrend line and / or the 200ema.  My first target is $62. If price drops below the TL, kill the trade.

The Trade

With a break above $121 I think this is headed for a retest of $131 which was the prior high.  Get long with a break above $121 with a stop just below.

I don’t think its necessary to load up on all the cruise lines, but both these charts look bullish to my eye and see them going higher. Both should get a bump from the Norwegian results so use your best judgement on the entry.  Also take a look at $NCLH, that looks good as well.

$WGO Winnebago  Daily

Recreational product maker Winnebago is breaking higher from a classic bull flag. Obviously would have liked to catch this a few days ago, but i see clear sailing to at least $36 and the measured move projects a target of $42. I still like it long

The Trade

Get long against $32 and shoot for a first target of $36. Then with a little luck we’ll find $42 if it can pop the resistance at $36. If price loses the 200ema, kill the trade.

$CVS  CVS Caremark Weekly

CVS got the rug pull treatment yesterday and lost a bunch.  Although I do not see a compelling trade at the moment I do see a compelling set up on the horizon.  Take a look at the chart.  I’d be very interested in CVS if it falls to $60 which is only a few bucks away.  That is multi year support.  You should also notice that selling $80 and buying $60 has been a great trade for this stock.

I want you to alarm $60.  At that point we’d need to see it hold. If it does, it will set up for a multi month long.  If however it should fail at $60 it then would set up for a multi month short against $60.  The measured move on a failure of $60 would be $40.  Holding $60 is going to be so key for this stock.  I want to be ready either way.  Please alarm $60, otherwise you wont remember.  Sets up for a great trade.

$CAH Cardinal Health Daily

Price on Cardinal Health is sitting just below a $5 gap.  It’s going higher if it can clear $57.

The Trade

Alarm just above $57. If it triggers get long and look for $62. Place your stop just below key resistance at say $56 or so.  Earnings are not until after April options expiration so I’d focus on the April chain with a strike either at the money or one strike in the money.

Need More Trade Ideas?

Check prior posts of “Trades about to Happen”. You’ll find more ideas there. Some will have triggered already, but you will likely find others that meet your criteria that have not yet triggered.

Notes:

These are ideas and set ups. Please double check when earnings are set to be announced because the earnings reaction has the potential to torpedo any technical set up that may exist.

Also, set you stops according to your own risk tolerance. The ones I have provided are to be used only as a guide. The most important aspect of your stop is to honor them. Some trades work, some don’t. Honoring your stop will ensure your loss on a failed trade will be minimal.

Join our Trading Tribe!!

Our group of aspiring traders are into active swing trading using technical analysis to find objective, high-probability,  low-risk trades.  Using these processes we’ve been fortunate to be winning; not perfect but winning. If that seems appealing to you, join us!  I’d like to think you’d benefit from the work.  You’ll get premium  content 6 times a week including a copy of my Daily Profit Compass, Weekend Profit Navigator, and Trades about to Happen along with other actionable content delivered directly to your mailbox.

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