DVA 

This is DaVita Health Care ( NYSE: DVA ). You can see what’s going on here, this stock had a heck of a breakout today. It is only up less than 5 percent, so based on what some of these other stocks have been doing, oh my gosh, 20 percent, it’s only a 5 percent move.

If we look at the weekly chart, again, we can get a sense of what is happening. I am looking at this stock as kind of making a decisive breakout from this trading box. The same thing here, I will draw the same box here, this is the breakout from this thing. The box is really like $10.00, and so I am looking at this stock and I can see it running up, 130.00 isn’t that big of a deal right from where it is now, not that much at all, 5ish percent.

But the way this stock is moving, and by the way, this volume has been increasing, I think a good price target for this would be more like 135.00, I don’t see why it can’t go back up to this level. This is a company that does dialysis for end-stage renal disease.

And so, now that the lockups tend to be over there are more people that can go in and get themselves assessed and treated. They realize that after a couple of years of lockdowns and them not getting treatment (I know somebody that this happened to), now they can finally go in and get looked at again and realize, I’m in the end stage of renal disease, maybe I need dialysis.

I am looking at this as having more upside, but you always have to prepare for the downside. And so I would say that if you are buying this stock I would have the stop right down here so you are not risking that much money. The reason here is because if the stock falls back below this breakout, well then it was a fake-out, the breakout just didn’t work.

If instead, you say, well I’m going to put the stop down here. Well, if you are going to do that, then why don’t you put it down below this level here? And the reason you are not going to do that is that you are slowly ratcheting down your stop from a relatively small loss to a huge loss, you don’t want to do that. I would say, take a small position here, if you are making this trade, and then just see what happens when it starts to pull back, and it will, they always do.

XOM EOG CVX 

This is Scott with your Chart of the Day. I want to take a look at 3 oil charts because I’m not so sure the oil trade is over just yet, maybe it is. I am hearing a lot of chatter about that, it’s peaked, it’s not going higher. Maybe that’s the case, but these stocks are still in some pretty good uptrends and so I think they are still, at least, worth having on a watch list.

We will start here with Exxon Mobil ( NYSE: XOM ). XOM ( NYSE: XOM ) is above all of the major moving averages, the 50-day, the 20-day, the 21-day, and the 8-day, and a pretty good pickup in volume today off of the low. We can also draw a little bit of a resistance line, resistance there, resistance there, we are right under resistance.

And so what has to happen for this stock to break out is, it’s got to get above and stay above that 85.45 level and ideally do it on volume. There are local resistance zones that we can look at, there, and of course, way up here. But even if it comes and retests the old high here, from here that’s a 7 percent move to the upside, so not a bad move for a swing trade.

Let’s take a look at EOG ( NYSE: EOG ), the same kind of story. It’s above all of the major moving averages, came down, couldn’t even get to the 50-day. We have a nice downward sloping trendline with clear resistance. So again, the same kind of story with this. I think you want to watch EOG ( NYSE: EOG ) above 122.60, watch for a strong move through there.

How about CVX ( NYSE: CVX )? A downward sloping trendline, no real volume pickup here today but again, it is still in a well-defined uptrend. So if the oil trade is over why are these stocks still in an uptrend? That’s what I want to know and that is why I think they’re worth keeping on a watch list.

TWTR 

I want to talk about Twitter ( NYSE: TWTR ), not the cesspool that is the company, but rather the stock. I’m sure you know why this is up with respect to Elon Musk’s entry onto the board of directors, he’s buying, etcetera, etcetera. Okay, fine, the stock was already turning higher before this. If I recall correctly I think that he actually purchased a bunch of stock on the 13th or the 14th, I think that is when it started, maybe this is what pushed this up.

If you are a bottom-feeding kind of guy you could see that this was starting to move. It doesn’t mean anything if you are not a catfish at this point. But then finally, it’s looking nice, not a problem, it’s all good. It’s moving up a bit more and then boom, bought in, Elon. So this thing moves up a lot and then the next day it moved up even more and then sold off.

I sold some of my shares here, not at the top, not even at the open, I was kind of curious to see what would happen. I sold some of them here but I kept some more. I had sold some 55.00 calls against them to kind of hedge against the downside. Frankly, I should have sold the whole thing, obviously. But even just looking at it right now, I should have sold the whole thing. So I kind of got it half right and half wrong.

But then today, this thing gapped down but then it did close higher relative to where it opened. And so this is actually like advantage bulls, not in a big way. But if you look at this, on the weekly chart, the gap is still holding. And so this is what I would say, what I am going to say, I don’t think this is a stock that you want to buy right now, this could go either way but it is incredibly impressive, that after this kind of move the stock stayed up.

If this is where the stock opened on that news the stock is still up from there over 5 percent. If we look at where it closed on that day the stock is still up over 1.5 percent, so this is a really, really impressive situation. Maybe if the market was a little different and I was feeling a little different about things I would have probably kept some of my shares, maybe I should have. But the cool thing about trading is, that I can always buy them back.

If you are long here, I wouldn’t sell, I would keep my stop right about here, just a little bit below Monday’s intraday low because then you are in. You’re in the stock, you’ve got your loss set at around 8 percent, which would be the maximum loss that you could take. And then set an alert up here and if the stock starts running up above there then you go ahead and even just build your position. That is how I would trade Twitter ( NYSE: TWTR ) right now.