April showers typically carry May flowers, and this month, that could occur in elements of the inventory market.
Some of April’s largest laggards — which embody Penn National Gaming, Enphase Energy, Discovery, Intel, eBay and Boeing — could see huge reversals in May, two traders advised CNBC’s “Trading Nation” on Friday.
EBay’s post-earnings drop, for one, is “a great reason to buy the stock,” stated Danielle Shay, director of choices at Simpler Trading.
“This is a really good company. They’ve seen amazing growth throughout the pandemic,” Shay stated. “While they’re trying to be cautious for next quarter, I do think that people are going to continue to buy online.”
With the inventory now down close to its 200-day transferring common simply above $55, Shay stated choices traders could “promote some put credit spreads, promote some bare places” or just “pick up the stock at these levels.”
“I’m looking for it to actually do really well next quarter,” she stated. “EBay’s my pick here and I’m sticking with online shopping.”
Boeing could do effectively in May if it manages to interrupt above a key stage, Piper Sandler senior technical analysis analyst Craig Johnson stated in the identical “Trading Nation” interview.
“This is a stock that has sold off 7% over the month of April,” he stated.
“It’s coming right back into a big area of support right around 300, and from our perspective, any sort of move above this … 369 level is going to just open the door for a whole [new] leg higher,” Johnson stated. “This is a stock that we think should be bought here and I think it will be a winner.”
Boeing shares closed down almost 1% at $234.31 on Friday.