In a change from my usual approach of focusing on one setup, today I have decided to take a look at seven different setups that I find appealing. You can see the charts and analysis of my first four picks -- Amazon (AMZN) , Expedia (EXPE) , McDonald's (MCD) and the 20+ Year Treasury ETF (TLT) -- here, on Real Money Pro.
And without further ado, here are my three final picks: Tesla, Netflix and IBM.
Since there are many participants that continue to be excited about Tesla (TSLA) , I thought I would throw in my upside targets on this name. We just made a minor target at the $380.38 area. I would continue to buy pullbacks in this name, however, until proven wrong. Why? Well, because I have higher targets at $389.79-$393.58, and then a bigger-picture target at $409.80 -- above the market.
Please don't buy new highs, though. It's a safer bet to wait for a symmetrical pullback, as we saw a couple of weeks ago. Why? Because that is when I can identify a relatively low-risk entry vs. an entry that's more like playing craps in Vegas.
This setup on Netflix (NFLX) was originally based off of symmetry and a 0.618 retracement on the weekly chart. I love using this combo, when I see it in the direction of the trend. It took a while before we started seeing triggers on this one, but it's finally playing out nicely. I would look at pullbacks for a new entry, for those who are not yet in this one.
The support I want to see hold at this point comes in between $178.82-$181.39. As long as we hold above here, I would consider new buy triggers and look for an eventual upside target at the $198 handle. I will ditch my long position, however, if we don't hold above this same support, and I will wait for the next clear setup beyond that before considering another entry.
Here is an update on IBM (IBM) , which I wrote about a couple of weeks ago. Key weekly support did end up holding in this stock, and we did see a bit of a rally, but I have a couple of projections I want you to be aware of. These projections offer potential resistance levels to the recent rally that must be cleared if it is going to continue. They come in at $146.54 and then $149.03. Note that these levels come from projecting the prior rally swings illustrated on the chart, above. My vote is for clearing this area, since I did take the long side! I am wrong if the weekly support is violated below the $137.80 area.
Bottom line: I just apply the same work over and over and over again. Some of my setups play out nicely -- and some of them are a bust. The good news is that the ones that work typically make up for the smaller, defined risks on the ones that don't work out.
Carolyn Boroden is a regular contributor on Real Money Pro. Click here to learn about this dynamic market information service for active traders.