Suttmeier, a former U.S. Treasury trader and trading manager in the primary dealer community, has more than 40 years of experience in the U.S. financial markets. Suttmeier is an engineer by education with a master of science degree. He has been writing newsletters and market commentaries since 1984, and his engineering and trading background are the foundation for the combined fundamental and technical analysis used in the stories he writes exclusively for TheStreet.com.
Counter-trade strategy: Buy Caterpillar on weakness to the 200-day and 50-day simple moving averages at $131.66 and $129.68, respectively, and sell strength to its semiannual risky level at $145.60.
Sell Coca-Cola on strength to between its annual pivot at $51.51 and second-half risky level at $52.67. The stock is overvalued and last week was a technical 'key reversal.'
Sell Whirlpool as the stock approaches its risky level for July at $152.20 and its 'reversion to the mean' at $157.16.
Microsoft set its all-time intraday high of $139.54 on Monday, July 15 and if the stock ends this week on July 19 below last week's low of $135.37 the stock will have a weekly technical "key reversal."
Buy IBM between its five-week modified moving average at $139.00 and its 'reversion to the mean' at $147.72. Lock in a solid dividend and Red Hat innovations.
Buy Netflix on weakness to its 200-day simple moving average at $338.10, given the risk that the stock fails to hold its semiannual pivot at $364.99 on earnings volatility.
Buy Johnson & Johnson at its monthly and quarterly pivots at $134.76 and $135.44. These levels have been magnets following Friday's share price plunge on baby powder probe.
Buy J B Hunt Transport down to its July value level at $84.47. The stock popped higher on Friday as Wall Street realized that truckers have survived the adverse effects of increased tariffs.
Reduce holdings on equity ETFs by 50% on strength up to quarterly risky levels at $285.35 on Diamonds, $305.22 on Spiders and $201.51 on QQQs.
Buy Delta Air Lines on weakness to these key value levels and reduce positions on strength to its risky levels. This is called a counter-trade strategy.
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