AXON Axed

$AXON has been of high interest today, due to failed drug trial. Noise aside, let’s take a look at the daily chart, and what it means for the stock going forward.

AXON Daily - 2017-09-26

After a failed drug trial, the stock is trading significantly lower. At this point, people tend to ask, “Should I buy at such a discounted price?”

The answer to that question, at least the answer for trend traders, is absolutely not. Trend followers love to be long stocks that are above the 200MA, and short stocks that are below the 200MA. If anything, trend traders would be looking to short this stock. However, given how far away from the 200MA it is, and given how recent the news was, we will not be shorting this stock. For those that are currently long this stock, understand that there is huge overhead supply above us, and if the stock were to ever turn around, it will take a while for prices to recover, regardless of the current situation.

MU - Earnings Drama

$MU has been of high interest today, due to earnings. Noise aside, let’s take a look at the daily chart, and what it means for the stock going forward.

MU Daily - 2017-09-26

Clearly, the trend is rising. For trend followers, or for those who are currently holding shares of this stock, $MU is, without a doubt, a hold. More aggressive trend traders can place a stop loss below the 50MA, and more conservative trend traders can place a stop loss below the 200MA. As of the time of writing, we are long $MU.

Bias: Bullish (Daily)
Stop (Aggressive): $32.00
Stop (Conservative): $25.92

Why $NKE Is a Long Term Buy

$NKE has been of high interest lately. Let’s take a look at the daily chart.

NKE Daily - 2017-09-26

Upon first glance at $NKE on the daily chart, one can notice that the stock has been meandering back and forth along the 200MA, with an unclear direction. But stepping back up a timeframe and taking a look at this stock on the weekly:

NKE Weekly - 2017-09-26

One can see that, on the weekly, the chart is very close to the 200MA, and the weekly trend of this chart is clearly going up. If one is considering a longer-term play in $NKE, then buying some shares here and having a stop below the 200MA on the weekly would be a decent choice to take.

Bias: Bullish (Weekly)
Stop: $46.89

Long NTNX and AMD

Looking at a couple of tickers tonight to get long tomorrow.

$NTNX

NTNX - 2017-09-20

  • High Short Interest (Short Percent of Float: 43.19%)
  • 200MA Recapture, potential trend change
  • Cheap OOM call options

$AMD

AMD - 2017-09-20

  • Relatively High Short Interest (Short Percent of Float: 17.80%)
  • 200MA Hold, trending upwards