What to Buy: DLTR
The buy pick is made every evening at Midnight before the next day begins. The pick is a single day trade of a stock or
ETF. The Oxen Group provides analysis, entry/exit points, resistance levels, and a rating for the pick. Picks are only
single day trades. Longer trades are below.
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The Oxen Group is surprised by how much the market
is not thinking about the earnings coming out on
Wednesday morning from Family Dollar Stores Inc.
that The Oxen Group believes could be a real market
mover. The Oxen Group is pretty bullish on Family
Dollar earnings, but we have learned our lessons in the
past from putting our hopes in earnings only to be
disappointed. While we are excited about Family Dollar
earnings, what we can say for sure is that Dollar Tree
Inc. (DLTR) will move up or down with Family Dollar.
If FDO beats expectations, we can expect Dollar Tree to
significantly move up throughout the day. On the
other hand, if Family Dollar does not beat expectations
Dollar Tree will most definitely be a perfect short sale.
What we like about Dollar Tree over Family Dollar is
that Family Dollar is going to bounce up or down right
into the session that a lot of movement off the
morning prices will be less than Dollar Tree. The
market really could be moving on Family Dollar's
earnings, so if they are positive it could be a nice sign
for the market. Further, crude oil inventories are
supposed to come out lower than last week, which
might be a piece that could actually make the oil
market have a real reason to reverse its current
direction. The market seems to be almost perfectly
following what energy is doing right now, and if
inventories are good, it could further help the Dollar
Tree move up on a bullish market. Technically, Dollar
Tree is in a perfect position to move tomorrow on
bullish news, as well. The stock is extremely oversold,
way too undervalued, and ready for a technical rise.
Entry: Recommend buying from 5-20 minutes into
session whether short selling or buying.
Exit: We recommend exiting after a 2-4% increase.
Stop Loss: We recommend a 3% stop loss on all buy in
prices
Upper Resistance: 43.00
Oxen Rating*: 4
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