PLAY OF THE DAY: HD
*click on chart to zoom in
How to survive a CAT 4 hurricane and live to talk about it… Step one: move far inland and do so quickly! Step two: run, drive, or fly as fast as you can, and as far north as you can. Don’t look back and bounce the check to the undertaker.
Once you have secured your new location in a heavily fortified compound – protect thy portfolio. How, you may ask? Why with savvy investment in plywood, hammers and nails of course. Home Depot: HD
Considering the chart above – here are your five reasons why:
- Today’s monster “bozu” candle has taken out three levels of resistance – defined by the August 1 2016 high to the September 26 2016 low. These levels all “blown out” in a single trading session.
- Uptrend line anchored at the June 27 2016 low and the September 26 2016 low. This suggests there is very strong support now in this stock near the $125.62 area.
- A clear and striking break out in volume today – well above it’s 50 SMA. To wit…about 3 million shares above average volume.
- Money Flow – beautiful angle of attack and climbing. No where near overbought territory. Earnings do not release until November 15th – but it looks like due to the storm, heavy hands are moving in early. *(Nov 15 announcement will not reflect any hurricane sales)
- Based on the trading range from August through late September $132.25 is a very reasonable upside target – which I expect we can meet or beat on Monday’s open.
And there you have it. To all of my southeastern brothers and sisters, rednecks, goobers, second cousins, ex-wives, former employers, barmaids, beer buddies, miscreants, scoundrels and cretins whom I have known…please be safe. Find yourself some high ground – mix up a pitcher of “Hurricanes” and crank up the Jimmy Buffet music!
And you can bet your ole grandma’s gold fillings that Home Depot will be banging the cash register for you shortly.
Smoke em’ if ya got em’…and that’s how I roll…on HD
BLOW ME DOWN!