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Despite futures tanking this morning, stocks seem to be making a pretty strong overall recovery from the recent inflation-driven sell-off.
But make no mistake - the market is just as divided as ever…
Most of small caps in the Russell 2000 are slipping into mid- to long-term bearish patterns. Tech blue chips like Alphabet Inc. (NASDAQ: GOOG) and Twitter Inc. (NYSE: TWTR) are clearing hurdles left and right, but they may not have much runway left before they begin losing steam.
So on this week’s Fast Profits, I’m making a move in the “sweet spot” of the July trading climate. I’ve put together a trade on an industrials mid-cap, a “happy medium” between low risk and high growth.
But today’s trade on Colfax Corp. (NYSE: CFX) isn’t just “playing it safe”: Shares are locked into a long-term bullish trend, and moving average patterns are signaling an even bigger breakout on the horizon.
Check out the video below to see how to play it…
Action to Take: Buy to open CFX Dec. 17, 2021 $45 calls (CFX210716C00045000) using a limit order of $4.
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About the Author
Chris Johnson is a highly regarded equity and options analyst who has spent much of his nearly 30-year market career designing and interpreting complex models to help investment firms transform millions of data points into impressive gains for clients.
At heart Chris is a quant - like the "rocket scientists" of investing - with a specialty in applying advanced mathematics like stochastic calculus, linear algebra, differential equations, and statistics to Wall Street's data-rich environment.
He began building his proprietary models in 1998, analyzing about 2,000 records per day. Today, that database, which Chris designed and coded from scratch, analyzes a staggering 700,000 records per day. It's the secret behind his track record.
Chris holds degrees in finance, statistics, and accounting. He worked as a licensed broker for 11 years before taking on the role of Director of Quantitative Analysis at a big-name equity and options research firm for eight years. He recently served as Director of Research of a Cleveland-based investment firm responsible for hundreds of millions in AUM. He is also the Founder/CIO of ETF Advisory Research Partners since 2007, noted for its groundbreaking work in Behavioral Valuation systems. Their research is widely read by leaders in the RIA business.
Chris is ranked in the top 99.3% of financial bloggers and top 98.6% of overall experts by TipRanks, the track record registry of financial analysts dating back to January 2009.
He is a frequent commentator on financial markets for CNBC, Fox, Bloomberg TV, and CBS Radio and has been featured in Barron's, USA Today, Newsweek, and The Wall Street Journal, and numerous books.
Today, Chris is the editor of Night Trader and Penny Hawk. He also contributes to Money Morning as the Quant Analysis Specialist.