4 Stocks To Buy And Sell Now

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Includes: AZO, BBBY, CG, CPWM, GPC, GS, KIM, KMI, ORLY, WYN
by: David Ristau

By: Joey Vazquez

Oxen Group Contributor

We continue our search for the most attractive companies to buy and sell right now. Today was a stellar day for the markets, rallying on hopes of stimulus package in Europe, but we remain weary and feel this was merely a relief rally. Today, I strive to find attractive companies with strong or weak fundamentals and technicals that will outperform or underperform the markets. Should you buy or sell these companies?

Bed Bath & Beyond Inc. (NASDAQ:BBBY):

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Bed bath & beyond has been one of the few stocks that has remained fairly strong in this weak environment. Most of their success is due to recent acquisitions of Cost Plus World Markets (NASDAQ:CPWM) and Linen Holdings. Additionally, the company has done very well since a great April earnings report. BBBY recently bounced of its support from its 20 day MA and is poised to continue higher. BBBY stochastics just turned around and are headed higher and its RSI is at a modest 55 leaving plenty of room for buying. BBBY OBV indicator is still in an upwards channel showing the positive momentum is going strong.

Trade Idea: I would look to go long BBBY at now at $71.92

Target: Take half of at 1% gain and remaining at 2%

Stop Loss: 2% on the way down

Wyndham Worldwide Corp. (NYSE:WYN):

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On June 4th Wyndham CEO was quoted saying that Europe represents about 15% of their overall EBITDA at the Goldman Sachs (NYSE:GS) lodging, gaming, Restaurant & Leisure Conference. While this amount is a portion, WYN is getting a lot of growth in other places in the world, and we believe that the market is enjoying that news. WYN recently bounced of support of its bottom BB band and retook its 20 day and 50 day MA on its move up. WYN stochastics have already turned around and are headed higher. Its OBV indicator is showing that positive momentum has decline from its peak in early May, but it's looking to continue higher.

Trade Idea: I would look to go long WYN now at $50.00

Target: Take half of at 1% gain and remaining at 2%

Stop Loss: 2% on the way down

O`Reilly Automotive Inc. (NASDAQ:ORLY):

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O`Reilly Automotive was a victim of the month of May, but their recent resurgence makes them a Buy once again. On June 1st ORLY announced an additional $500M share repurchase authorization in hopes of increasing future EPS, bringing the program total to $2B. Auto part companies have been weak, but auto part sellers have done better like AutoZone (NYSE:AZO). ORLY recently broke through resistance of its 50 day MA and pivot point. ORLY now has a nice foundation for support at the $97.27- $98.18 area. ORLY MACD indicator is on the verge of crossing its signal line upward, that would give us another bullish indicator. Its stochastics have turned around and are racing upward. ORLY RSI indicator is at 54 telling us that this stock is not overbought and there's a lot more room for the stock to move upwards. I would like to pair this long with a short of Genuine Parts Co. (NYSE:GPC).

Trade Idea: I would look to go long ORLY now at 98.07 & Short GPC now at $60.47

Target: Take half of at 1% gain and remaining at 2%

Stop Loss: 2% on the way down

Kinder Morgan Inc. (NYSE:KIM):

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Kinder Morgan transports natural gas, crude oil and other commodities through their pipelines and with commodities being dragged down it's no surprise KMI has performed so poorly. Just today, Goldman Sachs and Carlyle Group (NASDAQ:CG) cashed out a portion of their stakes in KMI after KMI failed to acquire El Paso (EP) last month. Things are not looking up here. KMI has not been able to fully break its 20 day MA since before March. A mini-deathcross also formed on KMI chart in early May and its stochastics just turned down. KMI CCI indicator entered the -100 territory, signaling the start of a new bearish trend. All these bearish indicators and the fact that KMI was down over 2% on a day when most indices were almost up 2% is indicating a short on this stock.

Trade Idea: I would look to go short KMI at $32.01

Target: Take half of at 1% gain and remaining at 2%

Stop Loss: 2% on the way down

Disclosure:

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.