Take a look at IHS Markit ($INFO) and Cisco ($CSCO) (November 13, 2019)
INFO CSCO
I want to look at a couple of stocks today that could give us some pretty good moves tomorrow. IHS Markit ( NYSE: INFO ), this is in a volatility squeeze, a strong up trending stock. If we get a push higher, say, above today’s intraday high of 70.39, we’ll call it 70.40, we could get a nice breakout to the upside, particularly with a strong market. This is a stock that you could just own anyway as long as you are keeping a stop, you shouldn’t be risking more than 4 percent on this, just a little bit below the 50-day moving average.
The other stock that could be working tomorrow is Cisco ( NASDAQ: CSCO ). They beat their numbers but their guidance was weak and that’s why the stock is down about 4 or 5 percent almost 5 percent. Here’s why I like this; I would never short this stock, not the way it is right now. But if you look at support over the last several months every time it has hit 46.00 it has rebounded. Here, several times here it came close all during October and here it is back to about $46.00 or so.
This would really not be one of those snapback rubber band trades that I like to find; where you get a stock that is down 10-15 percent, wait for all the frenzy to settle out for the first minute or two of trading and then take it for a ride back up to the mean, reverting back to the price where it just kind of went too far. This isn’t really one of those. This is just a stock that could gap right back down to where it was bought before and we get a nice smooth little ride to the upside again.
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