CJ Apparently Gets His Trading Advice From Models
REMINDER: Our Recession Countdown is still counting right down. In fact, if the Atlanta Fed is correct, July 1 will mark two consecutive quarters of negative growth, though we won’t see that official number until closer to the end of the month.
That means you still have some time to prepare yourself, and you need to watch Tim and Shah’s Recession Action Plan from last night, if you missed it. Go here to catch up.
Liz here, opting out of the beauty industry. I will be over here in my increasingly large maternity clothes, eating cheese by the block. Swiss is best.
Other people feel differently, though. Apparently, Kenny isn’t the only one who appreciates the Kardashian bottom…
CJ gets his trading tips from models, too.
In fact, this is exactly what he said: “This stock is ‘going back on the curb,’ which is where my models are saying that the Waste Management sector is heading.”
HIS MODELS! I fleetingly glimpsed CJ surrounded by Cindy, Linda, Claudia, Naomi and Christy, all pointing out the relevant moving averages with perfect fingernails.
And in fact, I’d rather picture quantitative analysis that way.
Don’t tell me “not those kinds of models.” I need happiness. I have so little in my life now except cheese.
I like to think Cindy, my favorite, who once said, “Even I don’t wake up looking like Cindy Crawford,” picked this one out. Puts on waste management. Go get them.
We’ve traded WM once this year in Trading Today with some quick profits. Looking for the same as we double dip on the signal.
Stock got halted right at its 20-day, which is par for the course on the most recent bear market bounce.
This isn’t a technology stock, but when it breaks it sees similar volatilities as it is widely held with the institutions.
Buyers have backed away from the stock over the last few days as volume saw a crescendo on the buy last Friday. The lack of follow through on the volume side suggests that the stock is left to roll right back over to another dip, this time to $136 as a pattern of lower lows and lower highs is emerging.
Looking at a longer-term chart, WM shares are in the process of breaking into a bear market trend as the stock is trying to find support at $143, the price that holds its 20-month moving average.
That break will target a longer-term target of $130.
For now, we’re trading the intermediate-term with an August put, part of my “slowing the market down” approach to taming this bear market.
Here’s what to do:
Action to Take:
Buy-to-open the August 19, 2022 WM $145 put using a limit of $3.50 or better.
Enter as a Good til Canceled Order (GTC).
This is Liz again (I smoothly took over the reins from Cindy while you were dazzled by her latest hyaluronic acid commercial.)
I’ll be back tomorrow with a new “Bleh” trade – hang loose!
June 29 2022