June 26, 2017
Shares of Johnson & Johnson (NYSE:JNJ) have risen sharply in 2017. The maker of band-aids and other household products is up 23.5% this year. Using a technique called a measured move, I have calculated the maximum upside in Johnson & Johnson. This is the spot where every investor should short it for an easy-money swing trade profit as it falls. To calculate this, you simply take the first move up which is $28, then add it to the beginning of the second move. Each move should be a total of $28.00, thus putting the maximum upside at $139.00. This is where every smart investor will short it. The target on the swing trade short is $130.00, likely hit within weeks of the maximum upside $139.00 level. Please note the chart below for a visual representation of the measured move.
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June 26, 2017
There are so many traders and investors in the financial news media that will look at a declining stock sector and become so fearful. Why do they not see the opportunity in these beaten down industry groups? The reason is because they do not understand the charts. They are getting all caught up in the emotion of hearing that the sky is falling. Hence, they simply follow the crowd and all run for the exit door (sell) at the same time. This type of thinking has always gone on since the beginning of time.
Last week, the retail stocks were selling off in a very sharp manner. Popular retail stocks like Bed Bath & Beyond Inc.(NASDAQ:BBBY), Home Depot Inc(NYSE:HD), and Costco Wholesale Corporation (NASDAQ:COST) were plunging lower on the charts. Many traders and investors were selling these stocks with both hands as the volume was fairly heavy in these equities. Believe it or not, when a stock declines in this fashion this is where the opportunity lies. On June 24th, 2017 I was able to isolate a major chart support level for Costco Wholesale Corporation(NASDAQ:COST) just below $157.00 a share. Today, COST stock is trading higher by $2.52 to $159.62 a share. I was able to buy call options in the stock and sell half of them today for a 28.0 percent gain.
Traders and investors need to learn how to read the charts in order to find these trading opportunities when they present themselves. It is important to remember that there will be bear markets in many sectors and industry groups within an overall bull market. This is the markets way of presenting us with trading opportunities if you can understand the charts.
June 26, 2017
Options Traders, WE TOLD YOU! Nick sold $XRT options for 58% PROFIT!! Are you missing these trades? Get them here:
June 22, 2017
Nick NAILS IT! $XRT call options earned +26% profit in 1 day. Are you missing these money makers? Get them here: