There’s a reason we decided to break this report up into multiple parts.
The market has lost its mind, as we’ve been saying. On Thursday, it decided to drop 200 points. If we loaded up on long positions without confirming for trend change, we’re just throwing darts.
I refuse to just issue a pick for the sake of issuing a pick. I had a full list of 10 picks I was set to write up initially. But that was before Wall Street went a bit bonkers.
We are holding all of the recommendations issued so far, including KORS – which is moving beautifully. All have been long positions. Today, we’re adding a short position because of a massive over-extension on our technical pivot points.
Trade #5: Ambarella Short
Ambarella (AMBA) just hit a new all-time high on earnings. And it could head higher… but not before a healthy correction. I’ve been involved with stocks for 16 years, and this stock is massively overbought.
RSI sits at 78 – overbought.
MACD sits at 5.8 – insanely overbought.
Money Flow sits at 78 and ready to reverse.
It’s well above its upper Bollinger Band. And Williams % Range is stuck at zero.
It’s only a matter of time before we see a healthy pullback in the name.
Consider taking a small position in the AMBA August 2015 100 put up to $9.
Trade #6: Twitter (TWTR)
Twitter has been destroyed in recent weeks. But it just caught late 2014 / early 2015 support, consolidating just under $37 a share. RSI is just beginning to reverse well off its lows, with reversing MACD and Money Flow.
I strongly believe, given patience, that Twitter could refill its bearish gap near $50. That’s just my opinion. But I’m convinced upside is imminent. Consider buying to open the Twitter (TWTR) January 2016 37 call up to $5.
Stay tuned for new report trades shortly.
Until then, take care… and have a great weekend.
Ian L. Cooper
Rapid Retirement System