XLE SPY XOM VLO DVN DXY 

This is Scott with your Chart of the Day. I want to take a look at XLE ( NYSEARCA: XLE ) and some energy stocks because I think energy is still pretty much where you want to be in this market.

Now, as you know, we did have a big day on the SPY ( NYSEARCA: SPY ). A J-Pal Pump back up to the 21-day exponential period moving average here on SPY ( NYSEARCA: SPY ). But we are still in a pretty strong downtrend because we are under the 50- day and under the 200-day. So the longer-term moving averages are still drifting sideways, they’re lower.

And meanwhile, XLE ( NYSEARCA: XLE ) is near its highs and the longer-term moving averages are sloping to the upside. And so I like to pay attention to things that are near their highs when the market is kind of in flux like it is right now like it has been for a while As you can see XLE ( NYSEARCA: XLE ) has been in a nice strong uptrend all year long.

And so that brings me to stocks like XOM ( NYSE: XOM ), which is also in a nice uptrend and near the highs. Dan Fitzpatrick at stockmarketmentor.com added XOM ( NYSE: XOM ) to our Active Trade List yesterday. I actually took a little bit of this stock here on this day, added some yesterday, and added more today. This is currently my biggest position right now because it is in a strong uptrend and near the highs. If I bring in a weekly chart you can see, again, a long-term weekly uptrend

How about VLO ( NYSE: VLO )? Now, this is one that we have talked about in previous Chart of the Day videos, this is also near the highs. Now, I don’t think you can buy this right here right now, I think it is quite extended. You probably want to look for a little pullback to the moving averages here.

If I look at DVN ( NYSE: DVN ), also near the highs. Really good volume here the last two days. Occidental Petroleum ( NYSE: OXY ), near the highs. In fact, I think you could probably put an alert on OXY ( NYSE: OXY ) right around 63.60 and look for a strong move above this space coming on higher than average volume. Now, I will point out that they do have earnings coming up next week so that could be a catalyst for higher prices.

But regardless, I know a lot of tech stocks are bouncing hard today. But in terms of longer-term trades, I think you really want to keep your eyes on XLE ( NYSEARCA: XLE ) and XOP ( NYSEARCA: XOP ).

TDOC COUP 

I guess Cathie Wood, the greatest stock picker of all time, not, took a bunch of Teladoc ( NYSE: TDOC ) just before they reported earnings, after which the stock imploded. It opened 44 percent lower so that wasn’t really well but she did suggest that this is going to take over the world of their industry over the next 5-10 years. It’s nice when you are an “actively” traded fund when your performance is sucking, to talk about a 5-10 year performance. Go figure, I’m editorializing, completely editorializing.

Here’s what I wanted to talk about with Teladoc ( NYSE: TDOC ), the stock is moving up. Personally, I could be wrong and I don’t want to give anybody the vapors, but I think this move up is really more a function of being so darned oversold, more than 3 standard deviations below the mean here, which is the 20-day moving average, that it really had to come up.

The actual reason is not important. A couple of things, first of all, this reminds me of Coupa ( NASDAQ: COUP ). Remember in March here, the same kind of thing. It didn’t implode quite so bad but this stock fell, again, way outside the norm and reverted nicely. This thing ultimately went up over 70 percent and eclipsed the top of the gap.

Now, will Teladoc ( NYSE: TDOC ) do the same thing? Seriously, it might, it very well could, I don’t know. But this is what I think, I think you’ve actually got a pretty solid floor in at $30.00. If this was not here you would still see the stock in a pretty significant downtrend. No telling how long that would last, but it would still be in a pretty significant downtrend. But because this is down so low it virtually has to come up and at least test this channel. That is just the way stocks seem to trade. I am certainly not predicting that, I am just telling you, I have seen countless starts that have done just this very thing.

So the way I look at this is, that Teladoc ( NYSE: TDOC ) has still a way to go just to close some of the gap. And so that kind of leads me to a trade idea that I have, and it actually involves options. If you like this trade and you agree with me that hey, the bottom here is $30.00. I could even make a case for $35.00, then this is what you do, go out to the June option contract. June options, the $35.00 put, you can sell for $3.00. That means that if you sell a $35.00 put for $3.00 you actually get $300.00 for that and you are obligated to buy the stock at $35.00. So if the stock pulls back, sorry dude you own it at $35.00. But because you got $3.00 for that, your cost basis in the stock is actually down here. We’ll do it this way, your cost basis in the stock is down here.

So this is a way that you can essentially have a fairly risk-free way of making money on this stock just by betting that it WON’T come back down to this level. Because again, that would be your cost basis. I wouldn’t be selling a put lower than that because you are not getting enough money and you wouldn’t want to sell a put higher than that because it is just silly to sell in the money puts. This is a trade that I think would be something to consider. In fact, I will tell you this, I will be putting my Option Market Mentor people in this trade tomorrow. And we may even do it another way as well, which is, to buy the stock, sell the $40.00 call and the $35.00 put and we get double our fun. That way it is called a covered strangle.

GRIN SPY 

This is Scott with your Chart of the Day. I am pulling a chart from our Active Trading Forum that one of our long-term members posted and has been following along. It caught my attention today, it’s Grindrod Shipping ( NASDAQ: GRIN ), it is in a nice uptrend, that’s one thing I know, and it’s above all of the major moving averages.

We had a pretty decent day considering Friday’s close on the S&P 500 ( NYSEARCA: SPY ), let’s go over that, closing near the lows, pretty high volume. GRIN ( ( NASDAQ: GRIN ) bounced off the 50-day moving average and closed above all its key moving averages. Today a retest of that breakdown, it held, bounced up and closed near the highs of the day coming on higher than average volume.

This wasn’t even a stock that I was following, that is one of the advantages of being a part of a great trading community like we have over at stockmarketmentor.com. We have a ton of different types of traders looking at different types of things and a ton of ideas every single day. I saw this being posted and I liked this chart. It is in a nice uptrend, above all the major moving averages. A relative strength versus the S&P 500 ( NYSEARCA: SPY ) here on Friday and a nice follow-through here today.

I think this is definitely a stock you want to keep an eye on. I will note, it does look like it has a pretty small float and could trade with a bit of a wide spread. Anytime that is the case you may want to really kind of manage you size in that case because it might whip around a lot on an intraday basis.

But I think this stock is definitely one you should be watching because as you can see, it is close to the highs here. And in a market where a lot of stocks are hitting 52-week lows we should be paying attention to stocks near their 52-week highs. So keep an eye on GRIN ( NASDAQ: GRIN ), I’m going to set an alert here on my platform for a new high just above 28.90.