Blackstone Group is back towards the bottom of the gentle up-channel started in 2009 (see weekly chart below). Rebounded off a double-bottom on the daily chart in good volume, but not as much as the rest of the financials. Similar story to another, smaller asset manager highlighted recently (please check LM idea).
1. Buy here with target 28.50 and stop 23.50 for a RR of 1.83x 2. Buy here with target 32.00 and stop 22.30 for a RR of 2.28x 3. Buy Jan 16'17 28.00 call at 0.32 and sell same maturity 23.00 put at 0.45
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Yesterday's close above 26.30 is good news and confirms the validity of this trade - For now. Stay long.
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Asset managers have been left behind in this rallye. A catch up was bound to happen for this sub-sectors of the financials complex. The expected break to the upside took place yesterday on heavy volume. Expect the fundamentals for asset managers to improve, in the context of this market rally, which should fuel better earnings.
In this context, here is a recap of the 3 strategies above: 1. Stay long, move the stop loss to 27/share; 2. Stay long, move the stop loss to 27/share; 3. Do nothing for now.
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FYI Options strategy (#3) with updated prices would so far yield 1.47/share if closed at the prices of yesterday's close.
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- Impressive breakout, long overdue; - Very congested $26-27 area has now been breached; - Stock catching up with the rally in the financials, as expected; - Currently looking overbought but the breakout looks healthy; - New support levels $25.25 and $26.60; - KEEP HOLDING, maintain stop-loss at $27 - The position is in the money, let it run its course; - Options position should be closed (profit = 2.23/share or 8.92%); - Alternatively exercise your call and pocket the premium put (1.97/share).
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The stock closed above the top of the previous wedge - A positive signal. It has been up on volume, which is another positive. Stock currently closing in on our second target, and looking technically positive on all time frames. Has been up nearly 21% since we initiated this idea. There is more room to go as good market flows start feeding through to asset managers. KEEP HOLDING.
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Nice annual from Byron Wien... Please follow link.
There are 2 more $ up to our target and the stock is still above the stop-loss we are comfortable with. However, it closed yesterday marginally below the 50MA and in the context of a potential market consolidation, it is better to protect gains and take profits. This trade will have returned some 19% since inception.