Week Ended 24 June 2016 Free Simple Trading Stalk Candidate

This week’s Free Simple Trading Stalk Candidate is CME Group [CME].  According to it’s Yahoo Finance Profile,

CME Group Inc., through its subsidiaries, operates contract markets for the trading of futures and options on futures contracts worldwide. The company offers a range of products across various asset classes, based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, and metals. Its products include exchange-traded; and privately negotiated futures and options contracts and swaps. It executes trade through its electronic trading platforms, open outcry, and privately negotiated transactions, as well as provides hosting, connectivity, and customer support for electronic trading through its co-location services. The company also provides clearing and settlement services for exchange-traded contracts, as well as for cleared swaps; and regulatory reporting solutions for market participants through its global repository services in the United States, the United Kingdom, Canada, and Australia. In addition, the company offers a range of market data services, including live quotes, delayed quotes, market reports, and historical data service, as well as index services. CME Group Inc. serves professional traders, financial institutions, institutional and individual investors, corporations, manufacturers, producers, governments, and central banks.

The Charts:

Weekly

CME W 24 June 2016

 

Daily

CME D 24 June 2016

 

Metrics:

52 Week Hi: $100.87

52 Week Lo: $81.87

TAOST Ultimate Stop: $81.86

Average Daily Volume: 1.6mm

Optionable: Yes; Weekly, Monthly and LEAPs

Next Earnings Report Date: 28 July 2016

Trade Thesis:

Global equity markets took a beating on Friday on “Brexit.”  US financials were especially hard hit.  Exchanges fared better and, in fact, CME was up on the day.  When a stock bucks the broader market and is up on a big down day, I pay attention (you should too).  

When that stock is positively structured, it’s pretty much a no brainer play.  

Incidentally, I think the exchanges fared better because most people expect the volatility to continue in the near term… which, by definition, suggests increased activity… good for the exchanges.