• Chart of the Day: salesforce.com (CRM)

    by  • December 11, 2012 11:33 am • Charts to Watch, Tony Venosa's Chart of the Day • 0 Comments

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    Today’s chart is of salesforce.com (CRM) which provides cloud computing and social enterprise solutions to various businesses and industries worldwide. The company delivers customer relationship management applications through Internet or cloud.

    Ticker:  salesforce.com (CRM)

    Strategy:  Long Trade

    What I Am Looking At:

    • First Trust ISE Cloud Computing ETF (SKYY) up over 7 percent since mid-November bottom, outperforming the S&P 500 on a short-term basis
    • Greatly outperforming peers and the broader market, up over 60 percent year-to-date
    • The obvious bull flag and ascending triangle breakout from the $160 level, making an all-time high today
    • The 160-strike price was home to peak call open interest for the December/January series, appears to getting a delta-hedging rally as we break upwards through this strike
    • Delta-hedging rally may continue as major calls reside all the way up to the 175-strike
    • Based on equal measured move on the bull flag pattern looking to target near $180
    • Short interest represents 12 percent of the float
    • More than 10 days to cover, short-covering could help create a tailwind
    • Quarterly revenue growth (YOY) +35 percent

    Trigger:  Breakout of bullish flag pattern and ascending triangle/ Wait for possible backtest of $160 level

     

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    About

    Tony Venosa, CMT is a Senior Options Strategist and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2010. He has worked in the finance industry for over 15 years. He began his career as a trading assistant in Chicago on the floor of the Chicago Mercantile Exchange. He later moved upstairs and worked as a commodities broker on both the retail and hedging side. He left the brokerage industry to begin his trading career as a proprietary equities trader at a Chicago firm. In 2000, Tony moved backed to his hometown and continued trading his personal account. He later went on to earn his Chartered Market Technician designation. He earned a B.S. in Finance from Miami University. Tony’s main focus is short-term directional option trading.

    http://www.schaeffersresearch.com/

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