12/15 Best Idea

I’m back, the past week was tough, burying a parent is never easy but it is time to get back to work. I don’t expect anything crazy in the market from here through year end, volumes should dry up as many take the rest of the year off so you’ll have to be more selective in what you’re trading. Looking at the SPY, it appears I didn’t miss much, what concerns me here is the 21 ema is less than 1% away at 600 and we have yet to close below it since the election. We’re not far from the 50 day down at 590 because as hot as this market feels, we’re only up about 2% from where closed the day after the election.

This week’s best idea is a once great company that is reclaiming the 200 month average right now, not a typo, 200 month. It has lagged that long but I think it is in a great spot to go long for the next couple years as it currently sits around 20% lower than the average analyst target. We’ll look at some various options to trade it.