Consolidated Energy $CEIX to be Added to the @TradeIdeas HOLLY Hot List

May 21, 2018

It certainly feels to me that markets want higher. Look no further than the Russel 2000 for proof.

As such, we want to continue putting ourselves in position to ride the highest beta names with the best statistical chances of outperforming. It just so happens, that’s exactly what HOLLY is designed to do. She works hard dissecting and monitoring data (so you don’t have to) to put herself in position to enter trades when catalysts are present and conditions are most favorable to gains.

Last week, HOLLY uncovered some activity under the surface in Consolidated Energy $CEIX that caught her attention. Unfortunately for day traders, the stock has been stuck in a range since her signal was initiated. However, the good news for us swing traders is that signal put the stock on our radar and with our wider timeframe lens, I can’t help but LOVE this setup for a swing trade.

It couldn’t be setting up a more beautiful bullish high flag pattern, right at all-time highs:


This trade has my mouth watering. And with the Russell 2000 making new all-time highs and the S&P showing signs of wanting to play catch-up, the stars are aligning for a bullish buy here. As such, we’ll be buying CEIX at the open of trading tomorrow (Tuesday May 22, 2018). As always, I will trail this position with a 20% stop loss from the highest print we see while holding the stock in our basket. If you choose to join us, please size your position accordingly.

HOLLY Hot List Portfolio Update

Leaders continue to lead for us as $HFC and $GDS (each +11% last 5 trading days) continue their blistering paces, while $OLLI tries to join their party. Two notable bummers are $FITB which has gotten hammered during the last two trading days, and $USAT which looks like it might want to bust out of the wrong side of the high flag pattern that got me excited last week. One great thing I’ve observed in many of our positions in the past two weeks is I’ve had several opportunities to raise the stop loss levels because positions keep making new highs for us. That’s an exercise I always enjoy 🙂

Prices as of close of trading, Monday May 21, 2018.

 

If you’d like to learn how HOLLY, the Artificially Intelligent Virtual Analyst, can improve your trading and investing results, please visit Trade Ideas.

Good luck out there!

~ @chicagosean