Apr 15, 2020
On Nick's radar today:
1. Earnings season has begun with earnings from JPM, JNJ, and WFC. Earnings season will continue for the next 4 to 5 weeks. Nick doesn't think the numbers will matter much due to the recent shutdown. Tomorrow we get more financial stocks reporting such as Goldman Sachs, Bank of America, Charles Schwab, Citibank, PNC, U.S. bancorp & United health. Earnings season is very cloudy and very bad. JPM is backing off and Nick believes it’s a potential buy within the next week and believes it could it hit $110. He’s looking for an additional pullback. JPM is the leader of the pack. Goldman’s earnings are due out tomorrow and it's looking good on the chart. Could pop to $205.
2. Oil is trading lower again this morning. It will be important to watch the pattern this week for a possible setup. It’s been week since the OPEC cut and crude has been down. It has not given a buy signal yet. When it does Nick will be on the long side. Interesting pattern with small risk and large potential gain. Look for it to hit $30 and then $36.
3. Gold is in an uptrend, but it is extended at this stage. Nick thinks it needs to pull back at his point of the game. For today silver is up 4%. It’s chart is looking very strong and has increased gradually. The real test is $17.50 to $18.00. Then it’s on to $20 and then the mid $20’s.
1. Hershey (HSY): I'm going to put 6% of my portfolio in HSY, if the price drops to $120. Nick believes that $130 could be a good entry point.
2. Stanley Black & Decker (SWK): I'm going to put 4% of my portfolio in SWK, if the price drops to $100. Nick likes it at that level and would place a stop at $80.
SWK chart is on the screen now. Here's Nick's analysis of the stock. This chart explains the natural ebb and flow of how equities move higher. Here is a recent chart of SWK. Notice how the stock rallied up from the March 23rd bottom, then it stalled and retraced from March 26th to April 1st under it's 20-day moving average. It then started to move higher into the $120.00 level on April 9th.