The Chart Book: +27% in Unrealised Profits – Looking for More with Healthcare Stocks

While we might be coming off a quiet week (week of June 30th) we have +27% in unrealized profits and are looking for more with healthcare stocks.

The healthcare sector is looking strong and we believe will lead the way in the coming weeks.  We like the looks of the XLV (Health Care Select Fund) and specifically Humana (HUM); which is a small holding within the XLV.

In other markets, we will continue to look for pull-back in the S&P 500 and add/build long positions with 3100 the next upside targget. We believe this level will prove to be a very significant battleground as to where prices will head for the remainder of 2019.  But we are taking it one step at a time and will dive into more details should our forecast prove accurate.

Let’s get into managing our positions for the upcoming week and highlighting the new trade above…

Running total of our closed positions: (net % moves of the stock)

1. ROKU –  Gain of 35%
2. CRON – Loss of 8%
3. TTWO – Gain of 15% (1/2 size @ 8% & 1/2 size @ 21%)
4. CVNA –  Gain of 11% (1/2 size @ 17% & 1/2 @ 5%)
5. ABBV –  Loss of 7%
6. AMZN –Gain of 4% (1/2 size @ 2% & 1/2 size at 6%)
7. CTXS – Loss of 3%
8. TLRY – Gain of 23% (1/2 @ 23%)
9. NKE –   Nil (Break-even)

Open positions:

1. URA (Long from $11.60) –  Currently trading at $12.02 (up ~4%) – Let’s continue to be patient with this trade.  Exit half the position at $12.50 (~8%) – keeping stops at $11.25 (~3% risk).

2. IP (Long from $44) – Currently at $43.87 (basically back to our entry price) – Keep stops at $40.70 (~7% risk).  Profit targets open for now and will look to establish targets if/when we get above $50.

3. BAC (Long from $28.40) Trading $29.26 (up ~3%) – continue to hold. Looking for a 3rd wave rally here…Ready to define a stop loss of $26.6 (~6% risk).  Profit levels still open.

4. TLRY (Long from $39) Trading at $46.68 (up ~20%)  –  Prices virtually unchanged from last week.  Stops at $40 and final take profit level open. We are looking for a home run here!

5. TWTR (Long from $36.29)  Trading at $36.20 – This position has come back to life and looking good – continue to hold.  Stops at $33.50 (~7% risk).  Exit half position at $43.

6. NKE (Short from $86.20) –  This trade started off great and we were up well over 5%, but ultimately hit our revised stops at break-even, as Nike rallied. Not interested in being short again.  No harm no foul here….

New ideas/pending orders for this week –   Square (SQ), Spotify (SPOT), Netflix (NFLX) – New trade, Humana (HUM)

SQ –  Adjusting the entry level down to 66.  Stops at $59.50, with $79 as our first take profit level. 

SPOT – Looking to buy @ $137 with stops at $119.50.  First profit level at $167. 

NFLX – Buying a HALF position at $322 – stops and profit levels open for now.

HUM – Get long at the open with Stops @ $240 (~9.5% risk) and first take profit level @ $286. (See the chart below)

The Chart Book: +27% In Unrealised Profits

If you’d like to see the previous Weekly Chart Book Updates, they can be found here: https://www.aspentrading.com/chart-books/ 

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