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FRTraders
Jul 10, 2019 5:53 PM

Simple M analysis and play Long

Macy's IncNYSE

Description

Look, you can get as complicated as you want with charts but on this one we'll keep super simple. Yep, not just simple, but SUPER SIMPLE. LOL
M has a great P/E and a strong high yield making a popular value play for funds and really anyone that wants steady growth/returns.
Our analysis is this simple: The last time M broke off this level was back in November of 2017. This triggered a huge 6-month run.
We think a break above about $22.25 - $22.75 will trigger the same kind of run. It also seems like retail is starting to get some love and earnings season for retail (See Pepsi) is starting off fairly strong.
To take advantage of this while avoiding any short term volatility, we will buy the $24 Calls going out to 1/17/202 and we'll buy them at or under $1.10
Comments
FRTraders
Cashing out those LEAP's we bought for an easy 54%. We'[re out :)
FRTraders
SO far the idea is working...the contracts we bought at $1.10 are trading at $1.34 today...
FRTraders
We also just had a bullish cross over on the MACD
dneal012
Great chart
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