Option Investor
Newsletter

Daily Newsletter, Thursday, 6/2/2016

Table of Contents

  1. Market Wrap
  2. New Plays
  3. In Play Updates and Reviews

Market Wrap

Many Catalysts, Little Movement

by Thomas Hughes

Click here to email Thomas Hughes

Introduction

The market barely budged today despite a plethora of potential catalysts, all eyes remain locked on tomorrows NFP report. Even so, today's events are sure to have long lasting impact on markets ranging from forex, to commodities, equities, options and bonds.

To start things off Japans Prime Minister Shinzo Abe surprisingly put off the long awaited sales tax increase by another 2.5 years. This is the second time he has put it off and the second time he has raised questions about the health of Japan's economy and the effectiveness of Abenomics. The move sent the yen shooting to a multi-week high, and the Nikkei down by -2.32%.

The Japan news had an effect on European markets which were down in the early half of their trading session. However, traders in this region were more concerned about the ECB decision and Mario Draghi's comments. The ECB did not change policy, as expected, but did add commentary to the effect that economic recovery is not moving forward quite as fast as the central bank would like.

According to the statements EU recovery is slow but progressing, interest rates will remain low, or lower, for an extended period of time, inflation will remain low or negative into the near term, inflation may pick up in the second half of the year and GDP will remain below 1.75% out to 2018 or beyond. European indices moved higher initially, fell back to morning lows after the statements and then recovered enough to close flat by the end of the day.

Market Statistics

Futures on the US indices indicated a lower opening right from the start. The trade was weak, losses were indicated to be less than a tenth of a percent, moved marginally lower after the morning data and held those levels into the open. After the open the first 20 minutes of trading were decidedly bearish; the SPX moved down in two steps to hit a morning low of -0.51%. Once the low was hit the tone of the day's session changed and the market began to move up. By 1PM the day's losses had just been about completely erased, the Dow Jones Industrial Average at least moving in to positive territory. By 2PM the NASDAQ Composite and SPX followed the blue chips into positive territory and continued higher into the close of the day.

Economic Calendar

The Economy

Due to the Monday holiday many of the data points usually scheduled for Wednesday were released today. This means we got a massive dose of labor data, all good, with only the NFP/Unemployment left for tomorrow. The first bit was the Challenger Job Cuts data which fell to a 5 month low, and the second lowest level since October 2014. Planned job cuts fell to 30,157 and are -27% lower from last May although on a year-to-date basis are still running hot, +13%. Energy led with cuts numbering 7,572.


The ADP Employment report, a precursor to the NFP data, shows that 173,000 new jobs were created in May. This is up from last month, slightly below expectations, but well within the range we have seen over the past 18 months. Small businesses led with gains of 76,000 followed by medium size businesses with 63,000 and large business with gains of 34,000. One headline that may cause concern is that all of last months gains were due to gains in the services sector, 175,000, offset by declines in goods producing jobs, -1,000, and manufacturing, -3,000. When you look at where services jobs were created, trades financial and professional services, concerns melt away. I'd also like to point out a gain of +13,000 construction jobs which, along with the trades jobs, point to ongoing strength in the housing sector.

Initial claims for unemployment fell by -1,000 this week from last week's unrevised figure. Initial claims are now 267,000 for the 65th week running and remain low/consistent with labor market health. The four week moving average of claims fell by -1,750 to 276,750. On a not adjusted basis claims rose by 2.1% versus an expected gain of 2.4% and have moved back above last year's level in the comparable period, +6.5%. Not-adjusted claims have been moving above and below last years levels for the last 6 weeks and may be indicating a change in labor trends. Regardless, they are very low and consistent with current labor market health.


Continuing claims rose by 12,000 to 2.172 million on top of a downward revision to last week's figure of -3,000. The four week moving average of continuing claims also gained 12,000, reaching 2.162 million. This figure has been has been rising over the past month and reached a new 6 week high today, but remains very low and consistent with labor market health.

The total number of Americans receiving unemployment benefits fell once again, by -6,372, to hit 2.069 million. This is the lowest level since last November and consistent with historical trends and ongoing labor market health. On a year over year basis total claims are down -3.6%, a much narrower margin than we've seen over the past few years and may be indicative of slowing in labor market recovery. Based on historical data I think we can expect to see total claims fall for another week or two before hitting bottom, my target is still below 2 million.


Auto loan data was released this morning as well. The value of US auto loans hit a record high in May, a 10% jump from the previous month, totaling more than $1 trillion dollars. Also, the average loan, $30,000, and the average payment, $500, are at all time highs too. Jamie Daimon responded to the data by saying "the market is a little stretched" and that someone, not JP Morgan, was "going to get hurt". One reason may be the rising number of sub-prime loans and sub-prime borrowers entering the market.

Tomorrow the big news will be of course the NFP data but that is not all that is on tap. Also look out for unemployment, hours, wages, factory orders and ISM Services.

The Dollar Index

There was lots to impact the dollar today. First off the surprise move by Shinzo Abe sent the yen higher as expectations for a BOJ action declined; delaying the tax hike takes pressure off the economy and reduces the need for further QE. Next the ECB decision and statements; no move but hints at further stimulus and weaker outlook for EU growth weakened the euro. After that there is the US labor data which indicates tightening labor markets and points to FOMC rate hikes.

The Dollar Index began the day moving lower, then reversed above support levels and moved higher. It is now just below resistance at $96 and above support at the short term moving average, near $95, waiting on tomorrow's data and the FOMC meeting next week. If the data is strong, strong enough to indicate the need for rate hikes, the dollar could break above resistance and move up to $96.50 or higher. Looking to the CME's Fed Watch Tool there is only about a 21% chance of rate hike next week, down from 32% last week.


The Oil Index

Oil prices had a wild ride again today, driven by OPEC. OPEC had their bi-annual meeting in Vienna today and members have indicated there will be no change of policy, no production caps and that the market "can't rule out supply increases". The oil price began the day about 0.5% higher, WTI was trading near $49.30, then fell on comments from OPEC delegates, and then later in the day regained the earlier high on hopes of summer drawdowns to inventory. US inventory data was released today, because of the holiday affected week, and showed a 1.4 million barrel decline from last week and elevating expectation for higher summer demand for gasoline. Oil prices may continue to rise while inventory declines but fundamentals are still skewed to the down side so caution is due.

The Oil Index traded sideways from yesterday's candle, creating a small white candle that did not close above the short term moving average. The index has now been trending near the 1,120 level for more than 6 weeks, all while the price of oil has been flirting with 7 month highs, and has not been able to break out of its range. The index is currently below resistance targets near the 1,125 level and indicated lower by both MACD and stochastic. The caveat is that the indicators, while both are forming bearish crossovers today, remain consistent with range bound trading.


The Gold Index

Gold prices also saw some volatility today although the trading range was tight. Spot prices moved up by about 0.3% in the early part of the session on strong yen/weaker dollar only to fall back below break even later in the day on stronger dollar/weaker euro. Today's move was driven more by the data and dollar outlook than it was by Abe or Draghi, the focus being next week's FOMC meeting. Both the EU and Japan are faced with slow/slowing/sluggish growth and the possibility of further stimulus while the US is looking for the next move to tighten policy. If the FOMC does tighten the dollar is likely to move higher and drive gold prices lower. Support is still present in the range between $1200 and $1215, a break below here could take gold down to $1150 or lower.

The gold miners are under pressure in the face of declining gold prices and FOMC outlook. Today the miners ETF GDX traded in tight range and created a small spinning top doji below the short term moving average for the second day in a row. Over the past two weeks the ETF has moved below support levels at $23.50, confirming a double top formed in May, and appears set to move lower. The indicators are bearish although momentum seems to be subsiding, that being said the current MACD peak is an long-term extreme and suggests lower prices are on the way. My first downside target, provided gold prices remain low or move lower, is near $20.


In The News, Story Stocks and Earnings

Home builder Hovnanian reported earnings before the opening bell. The company reported substantial increases to revenue, +39.6%, but nevertheless posted a net loss for the quarter. Losses are due to massive debt load, a factor management says is being addressed. On a comparable quarter basis this quarter's loss was half that of the previous year, sign the company is making strides, but more work needs to be done. Company CEO says in the release they are focused on de-leveraging the balance sheet and investing in new lands rather than trying for growth at this time. Shares of the stock fell more than -11% on the news but found support, today at least, along the short term moving averaging. Based on housing trends, if they continue to make improvements to the balance sheet, this company could return to profitability in the not too distant future.


Ciena, maker of optical networking solutions, announced earnings before the opening bell. The company posted a top and bottom line beat, sending shares soaring, despite a decline in both from the same period last year. Company execs say results were driven by efforts to diversify the business and momentum in geo-specific locations. Guidance for the next quarter is in-line with expectations. Shares of the stock jumped more than 12% to hit a three month high.


Ambarella, supplier to GoPro and other imaging technology companies, announced earnings after the bell. The company beat EPS estimates smartly, $0.05 versus $0.02 expected, with revenue in-line with projections although down -19.5% from last year. The company also reported an increase in margins, as well as a stock buy back plan, which helped to send the stock higher in after hours trading. The stock traded higher all day, closing with a gain near 1%, and then gained an additional 5% following the release of earnings.


The Indices

Today action a bit mixed. Early trading saw the indices move lower, find support and then drift higher. Most of them were able to move into positive territory but even so daily ranges were only equal to about 0.5%. The only index to fail to move into positive territory was the Dow Jones Transportation Index which closed with a loss of -0.13%. The transports created a very small spinning top doji, sign of indecision, but above the short term moving average and near term support target of 7,750. The indicators are rising, suggestive of higher prices, but weak and in light of tomorrow's data and next week's FOMC meeting not too convincing. IF support holds and the index is able to move higher next target is 8,000 with a possible move to 8,250.


The NASDAQ Composite made the biggest move to the upside, 0.39%, and set a new 2016 high. The tech heavy index created a small white bodied candle, bigger than a spinning top but small nonetheless, which closed at the high of the day. Today's action took the index above the 4,950 resistance target with rising indicator so further upside is expected. Next target is near 5,050.


The second largest move to the upside was made by the S&P 500. The broad market gained 0.27% and closed at the highest level since early November. Today's action created a white bodied candle, closing at the high of the day, with long lower shadow indicative of support at this level. The indicators are bullish and pointing higher, suggestive of higher prices, but very weak. Next target should the index continue to move higher is near 2,120 with a possible touch to the all-time high near 2,133.


The day's smallest move to the upside was made by the Dow Jones Industrial Average. The blue chips gained 0.26% in a move that confirms support along the short term moving average. Today's candle is a small bodied white candle with long lower shadow, indicative of that support, just above 17,500. The indicators are bullish so a further move to the upside is likely although they have yet to show strength. Next upside target is near 18,000 with a possible move up to 18,150.


The indices are moving higher. It seems like maybe good news is good news again. The data, the labor data anyway, is positive and suggests economic recovery is at hand and while it also suggests a rate hike is due, it may not be the market shattering even we've all feared for the last year. The caveat is that earnings in the current quarter are still expected to be negative, and have declined again this week. The second half of the year is still expected to see growth, same with next year, so I am bullish into the longer term.

In the near term, the market may be able to reach the all time highs set last year but I am still nervous about correction. We've seen it happen before, the market move up to touch a new high only to pull back again on profit taking and repositioning. Tomorrow's data could help send the market higher, next week's FOMC meeting the same, but I reserve judgment until the next earnings season begins which is only 6 week's away.

Until then, remember the trend!

Thomas Hughes


New Plays

Buyback Bonanza

by Jim Brown

Click here to email Jim Brown
Editor's Note

HPE is flush with cash and they are going to spend that cash on dividends and accelerated buybacks. That should push the stock price to new highs.


NEW BULLISH Plays


HPE - Hewlett Packard Enterprise - Company Profile

Hewlett Packard Enterprise was spun off from Hewlett Packard (HPQ) to be the high growth segment of the company. The remaining HPQ was the slower growing PC and printer company.

HPE reported adjusted Q1 earnings of 42 cents and in line with estimates. Revenue of $12.711 billion would have been up +4% on a constant currency basis. Analysts were expecting $12.419 billion.

For the current quarter, HPE guided to earnings of $1.10 to $1.14. For the full year, they expect $1.85-$1.95 and that was more than analysts expected at $1.89. They increased free cash flow +101% to $1.1 billion for the quarter.

The good news came from their plans for the cash flow. HPE expects to generate $2.0-$2.2 billion in free cash flow in 2016. They are receiving $2 billion from the Tsinghua transaction which closed in early May and the money will be used for share repurchases. In 2016, HPE is increasing its commitment to return 100% of the free cash flow to investors in dividends and buybacks.

This means over the next couple of months we should see significant share activity as funds position themselves to be the beneficiaries of all this buyback/dividend activity that could exceed $4 billion in 2016. $2.5 billion of that is in an "accelerated" buyback program. The board authorized another $3 billion in buybacks to bring the current authorization to $4.8 billion.

They also announced a tax-free spinoff of their services division to Computer Sciences Corporation (CSC), which is expected to close in March 2017. This will produce another $8.5 billion in value to HPE shareholders in the form of $4.5 billion in equity in the combined company and $1.5 billion in a cash dividend and the removal of $2.5 billion in debt from HPE.

Earnings Aug 23rd.

HPE shares have shaken off their May weakness and closed today at a historic high. I am recommending we buy this stock in anticipation of additional fund investors moving in ahead of future dividends, buybacks and the spinoff.

Buy HPE shares, currently $18.50, initial stop loss $16.85

Optional:

Buy August $20 call, currently 40 cents. No stop loss.



NEW BEARISH Plays

No New Bearish Plays



In Play Updates and Reviews

Rinse, Repeat

by Jim Brown

Click here to email Jim Brown

Editors Note:

Today was a carbon copy of Wednesday with the indexes falling hard at the open only to recover in the afternoon to finally close the day positive. Yesterday the S&P dipped to 2,085 and today the dip was to 2,088. However, the rebound was stronger and the S&P closed at 2,105 and the highest close since November 3rd.

The biotech index was the strongest performer with a 2.55% gain with the Russell 2000 second strongest at +.6%. Note the significant difference between the two with the Dow and S&P only gaining +.27%.

The biotechs are driving the market and once ASCO is over on the 7th, it could be a different ball game.

Tomorrow we should see a continued Nasdaq rally because of strong earnings beats by Ambarella (AMBA) and Broadcom (AVGO). Both were up strongly in afterhours.

However, retailers were down hard again after multiple chains reported significant declines in same store sales for May. Gap stores saw same store sales decline -6%, Banana Republic -11%, Buckle -11% and Zumiez -7.6%. This pushed S&P futures lower in the evening session.

The Dow remains the weakest index with major resistance from 17,890 through 18,167. The Dow is not benefitting from the biotech gains.




Current Portfolio





Current Position Changes


P - Pandora Media

The long recommendation was opened with a trade at $12.08.


LOCO - ElPollo Loco

The short recommendation was stopped with a trade at $11.35.


SWIR - Sierra Wireless

The long position remains unopened until a trade at $20.30.


Profit Targets

Check the graphic above for any profit stops in green. We need to always be prepared for a profit exit at resistance.


Stop Loss Updates

Check the graphic above for any new stop losses in bright yellow. We need to always be prepared for an unexpected decline.



BULLISH Play Updates


CLVS - Clovis Oncology -
Company Profile

Comments:

No specific news. Shares gained slightly ahead of the ASCO conference.

Original Trade Description: May 29th.

Clovis Oncology is a biopharmaceutical company that focuses on acquiring, developing and commercializing anti cancer agents worldwide. It is developing three product candidates, which include Rociletinib, an oral epidermal growth factor receptor and mutant-selective covalent inhibitor that is under review with the U.S. and E.U. regulatory authorities for the treatment of non-small cell lung cancer; Rucaparib, an oral inhibitor of poly polymerase, which is in advanced clinical development for the treatment of ovarian cancer; and Lucitanib, an oral inhibitor of the tyrosine kinase that is in Phase II development for the treatment of breast cancers.

Clovis announced it would make three presentations at ASCO and one discusses the potential for using Rucaparib for treatment of a different cancer other than the drugs original intent. That presentation is on pancreatic cancer and the other two are on ovarian cancer.

These are promising drugs and any positive data that Clovis releases could give the stock a significant boost.

In their recent earnings, they reported a loss of $1.98 compared to estimates for -$2.15. Because it is an experimental drug company, the earnings are not that material. Shares did decline about $1.50 after the report but have risen $4.50 in the last two weeks.

Earnings August 4th.

Resistance is $20.30 and shares closed at $16.70 on Friday. I would gladly take a $2 gain out of the middle over the next week and they tighten the stop loss as the multi-day conference begins next Friday.

Position 5/31/16:

Long CLVS shares @ $16.80, initial stop loss $15.35

No options recommendation because of wide spreads.



OMED - OncoMed Pharmaceuticals - Company Profile

Comments:

No specific news. Holding the recent gains and fighting resistance at $15.

Original Trade Description: May 21st.

OncoMed Pharmaceuticals is a clinical-stage company focused on discovering and developing novel anti-cancer stem cell and immuno-oncology therapeutics. OncoMed has seven anti-cancer therapeutic candidates in clinical development, where each target key cancer stem cell signaling pathways including Notch, Wnt and R-spondin LGR. OncoMed is advancing its wholly owned GITRL-Fc candidate and an undisclosed immuno-oncology candidate (IO#2) toward clinical trials in the 2016-2017 timeframe. OncoMed has formed strategic alliances with Celgene Corporation, Bayer Pharma AG and GlaxoSmithKline (GSK).

OncoMed is making six presentations at ASCO related to six oncology drug candidates, including robust preclinical anti-tumor activity data for its wholly owned GITRL-Fc candidate and from clinical trials of vantictumab, ipafricept, demcizumab and tarextumab.

All of that is Greek to me but this is a cancer conference and OncoMed is an up and coming cancer drug company. They should be right at home and the notes I have read suggest several of their drugs are very promising. They have milestone payments coming from GSK, Bayer and Celgene coming in 2016-2017 of more than $270 million.

Shares have risen steadily since the earnings miss on May 5th. As a preclinical company they do not have retail revenues and depend on funding from their partners. They will have operating losses until their drugs are in the marketplace.

Shares spiked on the 28th after AbbVie said they were buying cancer drug company Stemcentrx for $10.2 billion. That company is in the same stem cell research sector as OMED.

Earnings August 4th.

With the ASCO meeting still 10 days away we could benefit from some of the building excitement and hopefully the company's presentations at the meeting will increase the interest in the stock.

Position 5/23/16:

Long OMED shares @ $12.80, see portfolio graphic for stop loss.

No options recommended because of wide spreads.



P - Pandora Media - Company Profile

Comments:

No specific news. Pandora's chief product officer will present at the Stifel Technology Conference on June 7th.

Original Trade Description: June 1st.

Pandora provides internet music streaming services in North America. Listeners can create personalized stations to access free music and comedy catalogs as well as personalized play lists. They offer Pandora One, a paid subscription based service for listeners. They sell audio, video and display advertising for delivery on connected platforms. They also offer a ticketing platform for promoters and advertising to promote their events.

In Q1 active listeners rose to 79.4 million and hours streamed rose 4% to 5.52 billion. They reported a loss of 20 cents but that was 19 cents better than the 39 cent estimate.

Pandora's chairman Jim Hill bought 250,000 shares at $10.97 per share and then another 250,000 shares at $11.33 each. That is close to $6 million in purchases. CFO Mike Herring bought 225,000 shares a couple weeks earlier. Last week somebody bought 12,000 contracts of the September $12 call options. Today somebody bought 1,000 contracts of the July $13 calls and there was another trade for 2,500 of the September $10 calls.

So what is powering this sudden interest in Pandora? In May the hedge fund Corvex Management announced it had acquired a 9.9% stake and demanded the company be sold to the highest bidder. Keith Meister runs the fund and he believes there should be an auction and Facebook should buy the company. Since Pandora has only a $3 billion market cap that should be attractive to Facebook because it would get those 79 million listeners to further spread its advertising reach across the internet.

Apple, Google and Amazon already have some type of streaming app and that leaves Facebook as the likely candidate. Barron's suggested Verizon or Liberty Media could buy them. Sirius XM was also mentioned as a possible buyer.

With plenty of potential acquirers and insiders buying huge amounts of stock there may be some discussions in progress.

Shares have been on a steady upward path for the last month and it is accelerating.

Position 6/2/16

Long Pandora shares @ $12.08. Initial stop loss $10.25.

No option recommended but the July $13 is only 62 cents.


SWIR - Sierra Wireless - Company Profile

Comments:

No specific news, minor gain. Shares are still holding at resistance at $20. Eventually there will be a high volume breakout or break down.

The position remains unopened until a trade at $20.30. High today was $19.88.

Original Trade Description: May 26th.

Sierra Wireless engages in building the Internet of Things with intelligent wireless solutions. They operate in three segments, Original Equipment Manafacturer, Enterprise Solutions, and Cloud Connectivity Services. They offer cellular embedded modules, software and tools to integrate wireless connectivity into various products and solutions.

In their recent earnings they reported an adjusted profit of 8 cents. Revenue declined -5.1% because of previously reported softness in orders from several existing automotive customers. For Q2 they expect earnings in the range of 9-17 cents on revenue of $150-$160 million. For the full year they guided to earnings of 60-90 cents on revenue of $630-$670 million. They bought back 549,583 shares in the quarter.

The revenue in the OEM solutions segment declined -9.1% due to softness in auto production in Q1. Enterprise solutions revenue rose 9% and cloud and connectivity systems revenue rose 92%. They began upgrading their global LTE core network to provide additional connectivity for wholesale operators.

In their guidance, they said business should improve significantly because of more than 40 new customer programs moving into production on new IoT products. They manufacture to customer specifications when the customer adds a new product.

Earnings Aug 4th.

To go from an 8 cent profit in Q1 to 60-90 cents for the full year is a major gain in profitability. Shares have been rising since the earnings report and showing no weakness when the market was down.

With a SWIR trade at $20.30

Buy SWIR shares, currently $19.90, initial stop loss $18.45.
No options recommended due to wide spreads.




BEARISH Play Updates

ENDP - Endo Intl Plc - Company Description

Comments:

No specific news. Continued rebound. We still have a long put option open. At 5 cents, it was not worth a stop loss. We have two weeks before that expires and anything is possible after ASCO.

Original Trade Description: May 11th.

Endo develops, manufactures and distributes pharmaceutical products and devices worldwide. The market well known brands including Percocet, Lidoderm, Voltaren and a wide range of pain medications and testosterone replacement therapies.

Shares have declined from $26 last week to $14 today. The company slashed full year guidance by -11% on revenue and -23% on earnings. The acceleration of the decline over the last several weeks has been in reaction to some generic competitors expected to receive approvals from the FDA soon.

The company also disclosed they were being investigated by the U.S. Attorney's Office for its relationship with pharmacy benefit managers or PBMs. In light of the improper relationship between Valeant and Philidor the USAO is investigating to see if the same problems exist at Endo. In November, Novartis had to pay a $390 million fine to settle charges it paid specialty pharmacies for illegal kickbacks in exchange for inducing patients to refill certain medications.

Endo is also under pressure as a result of the Valeant Pharmaceutical disaster and the overall decline in the biotech sector.

Earnings are August 4th.

Even though shares are down significantly from the May 6th news, I believe they will continue falling and could go into single digits. The similarities to Valeant's pharmacy problems and the impact to Valeant's stock are too close and should weigh on Endo.

Position 5/12/16:

Long June $12.50 put @ $1.05, see portfolio graphic for stop loss.

Previously closed 6/1/16: Short ENDP shares @ $13.81, exit $16.45, -2.64 loss.



LOCO - El Pollo Loco - Company Profile

Comments:

No specific news. Hit our stop loss at $11.35 to knock us out of the position.

Original Trade Description: May 18th.

El Pollo Loco develops, franchises, licenses and operates quick service restaurants in the USA. The company offers individual and family sized chicken meals, Mexican inspired entrees and sides. They currently have 430 company owned and franchised restaurants. They are planning opening 16-20 additional stores in 2016.

The big spike on the IPO came on name recognition, a successful roadshow and a small number of shares initially offered. They later waived the lockup period and allowed insiders to sell their shares on November 19th, 2014, two months earlier than stated in the IPO documents. Shares crashed from $33 on the news and have never recovered that level.

The reported earnings on May 5th of 17 cents that missed estimates for 18 cents. Revenue of $94.4 million also missed estimates for $96.9 million. They guided for full year earnings of 70-74 cents, which was almost zero growth from the Q1 numbers. That suggests the competition is fierce and they are having trouble gaining market share. Earnings in 2015 were 71 cents.

Net income declined -19.8% in Q1. Same store sales declined -0.6% for company operated restaurants. That is not a good track record to use when selling new franchises.

Next earnings August 4th.

I think the crazy chicken is dying. Their moment in the sun is fading along with their stock price. Shares are rapidly approaching their post IPO low of $9.58 and once you break under that $10 level it is very hard to recover.

Position 5/19/16

Closed 6/2/16: Short LOCO shares @ $10.61, exit $11.35, -74 cent loss.





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