This morning we were setting up for a very busy day.
In addition to the market continuing its slide from last week — there were a multitude of In Play names and Second Day Plays from Friday.
Our #1 ‘In Play’ idea was related to TEVA which had agreed to purchase, in a mostly cash deal, the generics business of AGN. The deal is projected to be highly accretive to TEVA’s earnings the next few years. Due to the deal’s structure, there is no risk/arbitrage pressure on TEVA’s stock.
For these two reasons our focus was long.
Written notes from meeting:
The following price action:
At market close, TEVA made it to the top of the radar as the strongest stock (of a list of thousands of stocks).
Our #1 ‘Second Day Play’ was in AMZN. Because of its very large gap higher on Friday there were no identifiable support levels below Friday’s range. Therefore a trade on the long side would have to be momentum based as key levels from Friday were breached to the upside. We offered two levels which set up well as can be seen on the five minute chart below.
Notes from the meeting:
Following price action:
Do you want to get our best ideas LIVE each day?
Join Trader90 today so you can be in tomorrow’s best setups. Click the button below to learn more and join now.
No relevant positions.
