Buy the Dip!
For the first time in a week, we’ve heard Wall Street analysts mention buying the dip in Apple (AAPL) this morning.
We've been talking about it for a while now - but that's beside the point.
The stock sits just above the $180, and that should hold as support as we head into what should be a bullish pre-earnings week of trading.
Boeing (BA)
I tried to make a funny headline here, but let’s just stick to the trade. Boeing has had more than their fair issues with manufacturing over the last decade, and the last thing the stock needed was another.
They got it.
This weekend’s headlines are going to send the institutions into the pits as sellers, as they know that the company will now face a waiting game with numerous government agencies. If you’ve held the stock for the last seven years, you have made almost nothing - as the stock has writhed around in a wide trading range.
Furthermore, the company suspended its dividend – and the CEO surrendered their pay – in 2020 as part of an effort to obtain $60 billion in government aid to help recover from the 737 Max debacle.
Here’s the trade: Don’t try to catch a falling knife, even if it seems to have a controlled decent.
Don’t Listen to Barron’s Stories About the Mouse House
Last quarter, I warned you.
I warned you about the dangers of following Barron’s lead on Disney (DIS) ahead of last quarter’s earnings (check my warning out here). The reason is simple. Barron’s is not in the business of forecasting where a stock is going... they tell the stories of the market.
They’re at it again. This weekend’s Barron’s touts the stock ahead of earnings. At the same time that Pat McAfee is accusing ESPN’s executives of sabotaging his show.
Why does that matter? ESPN is likely to become a payday for Disney stock as they continue to mull a sale or spin of the franchise. Tick-off the talent and the payday may go down.
Don’t follow the crowd on trades like this. I’m targeting a retest of $85 for DIS if the stock breaks below its 50-day moving average at $90.
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About the Author
Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.