Home » Watchlist Week of May 9th, 2022

Watchlist Week of May 9th, 2022

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J.B. Hunt Transport Services, Inc. (Short Idea)

J.B. Hunt Transport Services, Inc. (JBHT) is a $18 billion logistics services company focused on trucks and transporting stuff via those trucks.

Here’s how the chart is setting up…

Daily Chart of J.B. Hunt Transport Services, Inc. (JBHT) — Source: TradingView

And here’s how the stock is setting up with my Stock Surge Indicator (SSI)…

  • Surge score: 64/100
  • % Above 52-wk low: 11%
  • Sales growth: +33%
  • Return on Equity: 27%
  • Triple momentum: no

JBHT is a stock we played on the upside last summer.

But price broke down in a big way last month, falling from $220 to $170 on accelerating volume.

Shares have now put in a shelf around the $165 mark where buyers appear to be supporting the stock.

If it breaks that low, consider selling short with a stop at $179.

Norwegian Cruise Line Holdings Ltd. (Short Idea)

Norwegian Cruise Line Holdings Ltd. (NCLH) is an $8 billion cruise line company operating under several different brand names with approximately 28 ships.

Here’s how the chart is setting up…

Daily Chart of Norwegian Cruise Line Holdings Ltd. (NCLH) — Source: TradingView

And here’s how the stock is setting up with my SSI…

  • Surge score: 31/100
  • % Above 52-wk low: 23%
  • Sales growth: +1,000%
  • Return on Equity: N/A
  • Triple momentum: yes

Norwegian Cruise Line has been trending lower since mid-2021.

After breaking below its 200-day moving average, the stock has been unable to rally above it.

When selling short, I prefer to do so against a resistance level like a major moving average when possible.

For NCLH, I am looking for a pop higher that we can sell into just beneath the 200-day (white line on the chart above).

The company is scheduled to report earnings on Tuesday. If the numbers are good, it might propel NCLH near the $21 level, which is where I would like to sell.

The buy stop would be on the other side of the 200-day moving average.

Summit Materials, Inc. (Short Idea)

Summit Materials, Inc. (SUM) is a $3 billion provider of construction and building materials for both residential and non-residential customers.

Here’s how the chart is setting up…

Daily Chart of Summit Materials, Inc. (SUM) — Source: TradingView

And here’s how the stock is setting up with my SSI…

  • Surge score: 40/100
  • % Above 52-wk low: 1%
  • Sales growth: -2%
  • Return on Equity: 8%
  • Triple momentum: yes (short)

Summit is a classic “broken leader” that could easily get cut in half over the next few months.

The stock advanced more than five-fold from the 2020 lows to late 2021 but has now turned south.

The 200-day line has been broken, and last month’s rally attempt failed and has now returned the stock to its lows.

The company announced larger losses than expected in its quarterly earnings report last week, which is only adding fuel to the bearish fire.

Consider selling SUM short on a move below $26.40.

Ross Givens
Ross Givens

I bought my first stock when I was 12 years old. It was Microsoft. I’ve been a registered financial advisor. I’ve worked as a stock broker. I ran a managed fund. I was a Vice President at JP Morgan with Series 7, Series 66 and Series 3 securities licenses. I’ve been featured on Fox Business, CNBC, Bloomberg, and a bunch of other networks. The only thing I enjoy more than making money, is helping YOU make money.

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