JNJ trade ideas
October 17 Earnings: Johnson&Johnson- Generic Competition GaloreJohnson & Johnson has been on an impressive intra-quarterly run with solid performance across major segments.
Strengths in the company's performance are to be driven by:
-Imbruvica and Darzalex should continue to perform well. Meaningful improvement from Stelara and Xarelto.
-New product launches like Tremfy (approved in the US late 2017 for plaque psoriasis)
-Revenue contribution from Swiss biotech Actelion, which J&J bought in June.
-Medical devices segment is expected to continue its strong growth trajectory with new product launches.
Weaknesses for the quarter are expected to be:
-Key arthritis drug Remicade to remain under pressure from generic competition.
-Invokana hurting from higher managed care discounting.
-Sluggish FDA review requiring more information before approving new drug treatments.
-Lawsuit from Pfizer to be clarified during the conference call.
Overall, I believe high expenses and generic competition will overcome the positives for the quarter.
I'm starting Johnson&Johnson with a $130 PT for the post earnings move with a tight but flexible 2.5% stop.
JNJ, waiting for the breakoutJNJ is consolidating the previous bullish movements by moving in a sideways parallel channel. If the stock breaks lower the minimum target is around 126 and if the bearish movement goes on the T2 would be around 122. If the stock breaks higher, then the target is around 144. The breakout must be confirmed by very high volume. If it doesn't, it may be a fakeout.
The informations and the strategies discussed are strictly for educational and illustrative purposes. They are not a
recommendation to buy, sell or trade any securities.
JNJ, a 75 cents risk daily bullish Bat Pattern. (MCD FTF trade)Both of JNJ and MCD are stocks that I want to have in my retirement portfolio, they are typical stocks that worth the easiest buy and hold strategy.
While it doesn't mean they are not tradable at all,since if I don't really want to risk 10-20% for a mid-term investment, I may turn to some tiny risk short-term trading opportunities.
Here JNJ got a daily bat pattern with a suggest entry near 130.30.
Also, 130 fig support itself is usually strong enough to rely on, so I would like to buy off the support with this 2 strategies' combination.
JNJ is a stock that worth more than 10% risk, if I can trade it with only 75 cents risk, I can trade much much more shares if I'm willing to risk the same amount of money. (for sure I won't risk as much though)
Of course less rooms mean lower winning percentage, and being stopped out in such a name with such tiny risk sounds silly.
While my purpose for day-trading is always to create longer term swing positions, and I don't mind if the trade failed as it's the risk I'm willing to lose, and it will be very good positions if the trade succeeds.
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On the other hand, the MCD 160 breakout is another trade that I'm very willing to get involved.
It has tried several times and consolidate a lot in front of it , which should accumulate much power for the breakout. 156.95 might be a good out for the swing trade with 162.95 1st kick.
160 level could be a intraday FTF trade (I believe no one knows FTF trade, since I invented it lol)
FTF trade: find a 5 minute or 15 minute out for the day traders who trade the breakout , put a buy limit 1:1 to their risk, put the out to the previous pivot low in the given time frame.
EX: if the potential out is 159.80, the 160 breakout's risk are 20 cents, so FTF trade will put a buy limit @ 159.60.
*the potential out is the out day traders may use if they are involved with the breakout, so think about where they will put the out to find the potential out.
Logic:
If the 1st try of the breakout fails, the traders who traded the breakout will be stopped out and it created extra, unnecessarily selling pressure that causes slippage.
The people who can benefit from the slippage are the people who already put their buy limit there.
It's a trade that I invented after suffering slippage a lot and I tried several times back then I day-traded a lot.
JNJ On the road to disaster due to $417 Million Lawsuit Loss?Fundamentals:
It seems Johnson & Johnson are on the road to disaster following a $417 Million Dollar verdict in baby powder case.
This is just the start of JNJs troubles as there are an incredible 4,800 Pending claims in the US Courts alone, over JNJs talc products.
The announcement from the article explains "LOS ANGELES—A jury on Monday awarded a woman with ovarian cancer $417 million in a case against Johnson & Johnson, the latest hit to the pharmaceutical company in widespread litigation over the alleged harms of its baby powder." - Sara Randazzo of the Wall Street Journal
Technicals:
After careful analysis, it seems that a WXY consolidation wave on the Intermediate period, has just completed and we may possibly see the start of an Impulse wave Down on the Intermediate time period, IF a breakout of structure occurs. Support and Resistance shows the possible formations during the downtrend.
Mustard and Ketchup EMAs have continued with the Uptrend since 2015 however due to the Fundamental issues facing JNJ, we can now expect a crossing of the Mustard, Ketchup EMAs with the Water EMA to confirm the downtrend move SHORT. Although TDI shows continued upwards band movement, RSI line shows close to overbought position above 60.0000.
In my opinion, I shall wait for more market data to occur, especially at market open to see if it will open with a GAP. If a GAP is present on Open today, that could be a precursor to future market sentiment as JNJ still has a whopping 4,800 pending claims to deal with and if the payouts are going to be in the vicinity of $400 Million, using this current case as a precendent, multiplied by 4,800 (in the USA alone - Not mentioning cases in other countries to be filed), I don't like the look of JNJs chances of surviving in the future. JNJ has enjoyed solid growth since the early 1990s, however putting customer's health at risk together with incompetent practices, usually equals a disaster which could be irrepairable. If price action breaks structure on the BLUE trendline (marked on my chart), I will start SHORTING this stock with large volume.
If price action breaches the RED trendline, another large volume will be shorted for maximum profit.
Informational Reference: Wall Street Journal
Article Here: www.wsj.com
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DISCLAIMER: This chart is for sharing and educational purposes only and is not intended to be a signal service or similar.
This chart analysis is only provided as my own opinion, based on my own analysis and comes with absolutely no warranty that this analysis is correct, whatsoever. Do not trade this chart if you do not have your own strategy. Trade only with your own strategy at your own risk. Plan your trade and trade your plan... and IF in doubt, stay out.
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JNJ long today at the opening very good major up trend.
the poolback ends with OKR reversal pattent
stop loss is 131 NYSE:JNJ
Johnson & JohnsonJNJ pulling back from it's high of 137 but still in a nice uptrend. Buying the $131 level. looks to have good support there and offers good risk/reward to trade against.
Entry: $ 131.00
Stop: 129.96
Target: $138
