Last night’s scans yielded several stocks, namely CTRP, TIF, and DLTR as potential trades worth considering, as markets decide what to do next. All of these stocks closed above the previous high of the day, rendering them suitable for a bullish follow-through trade if they break out as anticipated.
Summary
Stocks Showing Relative Strength
Candidates are ranked by intraday performance. We’ll watch these today with breakout triggers set for follow-through trades.
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Ctrip.com International (CTRP)
Obviously, (CTRP) is in the travel and tourism business. This Chinese company specializes in consolidating hotel and airline travel for businesses.
If the stock breaks out today, price action will enter an area with diminishing overhead supply. Volume spiked Wednesday.
The volume spike three weeks earlier was related to an earnings surprise of 533%. Results beat low analyst expectations. We’ll trade the APR42C if the stock breaks higher. We will most likely buy some common as well.
Jewelry and Luxury Brands – TIF
Much has been discussed regarding luxury brands relative to the Chinese markets and their potential disregard for tariff influence. TIF and SIG trades are viewed in this context.
Tiffany (TIF) is a swing from February. The company reported earnings that were inline, beating analysts expectations by 4%. Next targets are the 200d (110 +/-). A move above this level opens up a zone lacking in supply. We have common and JAN2020 120 Calls.
Signet Jewelry (SIG) is in a tight pattern. Look for it to break out soon as more of a confirmation for Tiffany. IBD data suggests TIF is the better candidate in this i
Futures are flat to slightly red this morning. Traders are cautious. New highs are still beating out new lows. Breadth is improving, suggesting we are consolidating in time, versus price. Stay tuned as that can change.
Join us today in the trading room for our LIVESTREAM broadcast during market hours, as we trade CTRP, TIF and other new positions. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.
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Happy Trading,
Vinny
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These mentions are stocks that we may or may not decide to trade as outlined in the watchlist. Always use a stop.