Charles Schwab $SCHW to be Added to the @TradeIdeas HOLLY Hot List

May 24, 2018

Charles Schwab is a familiar name to many @tradeideas customers — it’s one of the trading platforms most popular with our customers. Well, trading must be good because $SCHW has had a fantastic couple of years, soaring 180% off early 2016 lows (coincides nicely with HOLLY’s fantastic track record since inception on January 1, 2016 — coincidence?).

HOLLY has detected some bullish opportunities in this name recently. And as you can see in the chart accompanying the tweet below, she even detected a short sale opportunity that more or less ended in a scratch, further adding credence to the earlier bullish catalysts she’s identified in recent weeks. This stock wants higher.

As a monster cap name with a zillion shares outstanding, we certainly aren’t expecting a 10-bagger in this name. Rather, this is one of those names that has the potential to be a nice, steady performer for an extended period of time, especially if stocks (as measured by the S&P 500) return to and exceed highs set this January. And while we patiently wait for the long term to arrive, we’ll earn a cute little 68 basis points dividend yield (which probably compares favorably to the rates they are paying to savings accounts) as we hold the shares.

We’ve added $SCHW to the list at today’s opening print, and we’ll trail it with a 20% stop loss, as we do for all names in the list

HOLLY Hot List Portfolio Update

One of our newest editions, $USAT, broke out of the high flag pattern that had me so excited, and leads our portfolio over the last 5 trading days with a gain north of 13%. Other notable moves are $GDS (+9%) and $HFC (+7%). Unfortunately, we got stopped out of $SAIL for a 12% loss if you took it all the way to our stop loss level. And $FITB continues to drag the list down, as well as $PSTG.

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!

~ Sean McLaughlin (@chicagosean)