4/2 Best Idea: A Legendary Activist Is Buying This $35B Name 60% Off Highs.

As we look to the week ahead it is pretty clear we have regained the uptrend we have been riding since early October. We’re sitting over all the key moving averages as you can see below. Our new support is now that same white line. As you see, the last time we broke down below it, we went sideways for a couple weeks until we reclaimed it.

On a longer timeframe, the weekly chart, you can see pretty stiff resistance overhead just below 420 on the SPY. As we sit near 410 now, upside looks fairly limited from here, short term of course, and it seems likely we will bounce between the low 400 range and 420 for a bit until we decide on the next direction. In the meantime those are where you should focus your efforts.

My Best Idea This Week

Last week was a tremendous success with JD rising dramatically on the spin off news, the option flows worked much quicker than expected. Usually when I post a best idea, it’s a trade that I like over multiple weeks/months, I don’t typically expect it to run right away like that, but occasionally it does happen. This week I’ve got a name with a new activist investor involved who happens to be one of the greatest sharks of all time. I think is a tremendous opportunity over the next few months as the charts and option flows are aligning in one direction, up.