Target is trading above its 200d, after posting the best sales in over 14 years.
“Shares of Target stock rose more than 5.35% since Tuesday, March 3rd after the company posted a blockbuster earnings report for the 2018 holiday season. Stores open for the past year posted an average 5.3% sales increase, marking Target’s strongest result since 2005.
Target also reported a 4.5% increase in traffic to its stores. – source: Fortune
“We have been driving an ambitious agenda to transform our Company, evolve with our guests and drive strong growth. On every count we’ve been successful, and as we enter 2019, we will continue to lead the industry by adapting, innovating and delivering more for our guests and shareholders,” Target CEO Brian Cornell said in a statement.
Target Daily Technicals
Long if the stock clears 77.44 today. IV Rank has dropped markedly since earnins were announced last week, so ITM April monthly 77.00/77.50 calls are for consideration. We are also interested in taking profits from WMT and funneling those proceeds into Target common.
–
Target “Upside Targets”
The stock will start trending on a move above 77.44, whereas Volume by Price levels kick in around $80.00 (+/-). Anticipate a pause at this zone, then watch for a follow through on volume.
Note the volume “pocket pivot” on 03/05/2019. Earnings saw institutional size volume come into the stock, yet TGT shares have yet to respond. Anticipate a breakout in the next few days.
TJX is also setup under similar conditions, as we talked about during the LIVE sessions the past few days.
“We want to sell Walmart, and buy TJX or TGT this week.”
Futures are green again this morning.
Wednesday, we pointed out advancing stocks were beating declining stocks by a wide margin, after breadth registered a NYMO reading of (-89) the previous week. We pointed to the statistical probability of 74% bullish occurences 5-20 days after NYMO reaches this extreme and reverses.
Additional points to consider:
- New highs were beating new lows Wednesday.
- NYHL rose sharply. Stocks were bullish for the most part.
- TICK cumulative was rising sharply most of the day. The latter can only rise if institutions are buying more stocks on the uptick than they are selling on the downtick. This is important, as we trade bullish breakouts.
- Risk on indicators, JNK, IWM and IBB were all bullish
Bullish setups from the watchlist(s) past and present that are trending:
AAPL, ALXN, AMD, ANET, BAH, CSII, CTRE, FND, HAIN, HQY, INTU, JNJ, PLNT, TIF, TTD, V, WP, YETI.
Continue trailing stops on these new positions.
Join us today in the trading room for our LIVESTREAM broadcastduring market hours, as we trade TGT, TJX and other new positions. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
Want to become a member? Check details here:
Disclaimer: Do your Own Research
Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional investment advisor in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. Trades and or positions listed and taken from the watchlist are my own and should not be considered “advise” to enter any particular position or asset.
Investment Warnings
We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.
Live Sessions
Live broadcasts are educational in their content. Proper risk management is considered on every trade or asset mentioned.
*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities.
As always, the use of technical and fundamental analysis is encouraged in order to fine tune entry and exit points to average seasonal trends.
These mentions are stocks that we may or may not decide to trade as outlined in the watchlist. Always use a stop.