NIO Buy the Dip on Earnings and Facebook Breaking Out
Facebook Breakout and Continuation
Facebook (FB) is breaking out on volume as its Bollinger bands expand. The latter suggests a fast move is imminent. RSI is rising fast, as MACD approaches a bull cross.
We’re looking for a move above 179.00 (+/-), the prominent “Volume by Price” (VBP) band on the left. A lot of trading occurred in this area. Then look for the target level around 188.00 (+/-) short-term.
Cramer also talked about the FANG stocks last night on Mad Money, pointing out the tight Bollinger bands on Facebook.
Nio Inc. NIO – Buy the Dip
Traders in the room took positions off into strength and many took bets on a larger than average move post-EPS. The stock is down (-17.42%) in early trading presenting an opportunity if it holds the zone and gap above 8.10 (+/-). This zone was the consolidation breakout area after the IPO, where volume picked up. Look for this level to hold and interested parties to buy the dip.
Johnson and Johnson (JNJ) is higher on FDA approval of new nasal spray delivery system for its depression related drug. We have common. Targets 144.00 (+/-) on the swing position.
Baozun Inc. BZUN Earnings
Baozun Inc. (BZUN) posted earnings that missed on Q4. That said, revenues were up 40.7% for the quarter. The stock is off 3% premarket; looking for buyers and bargain hunters this morning.
Normally we do not hold shares into earnings, however we noted that premium was very high for next weeks calls, so much so that we decided to sell some calls for insurance.
We sold to open STO MAR15 40C for $2.75 yesterday, as a hedge and held the shares through earnings. Basically, we retain the shares with a cost basis of $36.69 and will let the calls expire worthless or buy them back later today if the stock rises. Volatility crush should net a nice profit on the calls.
Join us today in the trading room for our LIVESTREAM broadcast during market hours, as we trade BZUN, NIO and FB in addition to new positions covered intraday. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.
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