The Big 3: CEG, NTAP, CIEN

actually cares. Welcome back to trading. I'm Marley Kayden. It's time for the big three. We've got three stocks three charts and three trades for you. Kevin Greene taking us through the charts today. Here to take n Brown stock market expert at the Brown report.com and author of Far Millionaire. Great to have you both with us. Jason. You know how this goes. Kickingg picture thought and the market action we're seeing. We had the solid bond auction yesterday. We got the fed notes lea little hawkish. How are you looking at the markets right now.eah Marley Kevin good to see you guys. You know the market's still in an uptrend.t g to question how much are they willing to for growth when interest rates and oil prices are moving higher. Youhe S&P 500 sitting near all time highs. The question still remains can we through and go higher? And then when you look at the Nasdaq, Nasdaq did break thr and hit a new 52 week high I think three days ago. And s's telling us that tech is part of the rally of the S&P 500. But we need the rest of the market to come along with it. then the Dow Jones Industrial Average is just kind of struggling right Ad participation from the rest of the sector. So we're still bullish. But I like to say we're cautiously bullish right here. All right. You're cautiously bullish. And you've got some names in this big three today that have had somejm even just this week. So let's start here. Constellation energy is your first one. They of course have that big deal they signed with Google that gave them a really nice pop, giving back a little bit of that today. But how are you looking at Constellation Energy? Jason. Yeah. When you take a look at constellation, they're one of the biggest electricity and specifically one of thetes largest nuclear power plant producers. And everyone understands that AI companies need they need chips, but also AI companies need electri they need power. And the major advantage of nuclear power is that it can produce large amounts of electricity around the clock without shutting down, pretty much. So when you think about when you think about solar, you think about other ways to generate power. They're kind of weather dependent. There's some external sources there that can affect it, but nuclear can be reliable a long period of time. So that's why I like this one. You got the dea Google for 20 years out to have this power nuclear power plant, megawatt delivery system or s powerered to their AI facilities. Other facil are going to most likely come on board and need power. And so this is not a trend that's going to end anytime soon. We all know that we need more power.his is a company leading the charge in it. And from a technical standpoint, I know Kevin look at it, but the stock has built a nice base around the250 area. And so I like that we have, at least for right now, some short support. And we have a potential defined upside that the stock can move to. And I'm looking forward to your breakdown because this is a fune seeing also a support around 250. Yes, it is a fun chart actually. If you look at this time last year, we did see the stock trading at around $400 or so. We had a double top pattern taking place. It was valued at a p rich valuation, especially for power producer. We started seeing the stair step approachg back to the downside where we consolidated. We kind of broke below the 20, the 50 day moving average, and eventually the 200 day moving aveBut buyers have been able to step in and around this $250 level. We saw tha back o February 5th, where we tried to have a little bit of a rebound. We bace have been making higher lows for the most part ever. Now, I wouldn't call this a full on base as of yet, and the reason why is because we still have to actually recover several different areas of resistance. The 307 level is going to be the first one that we have to be able to get above and close. And today we actually hit. 3030699 before we started seeing a sell off here.n for today, but let's see if we can leverage that 200 day ng avee to break above 307, you're looking at 325. And then that's e effect that actually does occur for the stock. Now has been in a really decent range to the upside. The positive price momentum MacD is probably where you get the most bullish for this day, above the 26 EMA at least on the daily chart. Now if we go to the weekly, you can kind of see the same type of action. Over the last three years we've been in a megaphone pattern to the upside. That just means that we have apositie some volatility within the name. And that's exactly what we have seen. We have this pullback kind of taking place right now testing the 50 week movingeraget MacD on the weekly still 12 EMA above the 26 EMA which is bullish. You'd like to see that get above the zero line for us to really get another ramp to the upside. But I think if you kindf break out and you get to this. 30325 ish area, you can make the case tybe$400 coulr this name over the next couple of months. Aht. Jason, so then let's dive into the trade that you've brought for us todae. Are you looking 325 an important level for you and getting to 400, is that the goal here? And how long is the duration on this one?h, absolutely. So 325 is absolutely resistance. If we can break through we can potentially get to 400. Here's the thing though. As a trader, I don't like to be in a position where the stock h to do something in order for me to make money. So the way I like to look at this one is I'm looking at a bull put spread. If you buy the 240 strike price, it's costing you about $2 a debit. And then if you sellhe 250 strike price, both November 20th expiration. So you're talking about 43 days here. You're g $1.50 credit. Now mathematically it doesn't sound like $1.50 is a lot. But when you think about about it maically though, $10 risk for $1.50 credit, you're ta about a 10% potential return. You also have to look at the fact the stock could fall $50. So if there's that volatility that you just talked about that comes into play. The stock can move down 50 bucks before it even gets close to putting you in the risk zone of going negative on this trade. So you got 43 days. You $50 cushion. You're risking $10 to make 10% return in 43 days. And then the stock can go up. It can go sideways. It can eve go down 50 points and you can still potentially be profitable. So that's how I would play this one. All right. We do have an earnings event in that time frame. We've got the earnings on November 9th. But we've also got about a little more than 90% oanalysts who cover constellation have a bullish outlook right now. A buy or buy equiv rating coming into that report. But with that $50 cushion on that example t here's move to your next one. You've got NetApp. And we had NetApp hittin fresh all time high. Got an upgrade from Evercore ISI with a very high new price target from them. So how are you looking at NetApp, Jason? This company is no stranger to the industry. They've been around for 30 years helping manage large amounts of data. And so my thought process with these trades was looking at what are some of the alternative ways that you can play outsi just thinking about Nvidia or Microsoft or some of t semiconductor chips. And so they all need chips. We unders that. But what about where they store the data? And that's where Ncomes in at. So this they help companies think hospitals, b government agencies, they all have a large amount of data that they need to store and possibly retain for a long period of time. And that's where NetApp comes in at. Technically speaking, the stock is in an uptrend, and it's been tracking the ten day moving average with pullbacks to about the 20 serving as support since June. So I like the long tuptren and bounces. And then thelbac stock's been trending up the ten day moving average. So it's giving you some really nice technical setups. All t. Soh the technicals here. I mean year to date we're up close to 120% for NetApp. But are you also following the samng averagese or looking at something different. No. I mean look it' bullish trend. And if you kind of look at the chart on a one year daily time frame, we actually had this stock making lower highs and lower lows. This time last year, we were able to kind of bottom out around that 93 to $95 lev We saw consolidation for about we were able to start breakingn out to the upside. That's where more volume when it came to trading as well. We had this gap to the upsid on back in June. We had a consolidation for about a month and a half or so. Then we started ramping back up. We kind of hit that $2 level, consolidated once again, leveraged the 50 day moving average ofrt and co to move. And now we're making these highs. So at the end of the day t making higher highs, higher lows. You see the momentum within this name. We are not seey type of waning when it comes to even any of the oscillators that we ki focus on on a daily basis here. So this name is for the most part bullish. Now, if you do get kind of a blow off top pattern taking place becaus the velocity of the move, you're looking at a pullback to around that $207 level that you'd like to see it hold. In order for you to still ullish on this name. And if it does kind of lose that 20 day moving average, loe 50 day moving average. That's where you start looking for an aggressive move to the downsideg average. We're looking at the weekly once again still bullish. Wee consolidations and then continuing to move a little bit higher here. The only thing th I wote on the three year weekly chart is the volume profile. It is a little bit thin here when it comes to the price action. And when it comes to the volume over the last couple of weeks. So just be mindful that there's not a lot of volum really backstop the price action. But if the enthusiasm still remains, this name can continue move out. All right. So Jason, how would you look to trade NetApp then right now? And how much duration are you giving yourself here? So I'm sti with 43 days. Everything is going out to November pretty t this point when I look at this one, because it's a little bit extended from the ten moving average and that 20 that I would really like to get it closer to before I take a position. I'm looking at this and saying, but I still like it. The trend is your friend. So what I would do here is look at expiration. I would sell the 220 put strike price. I checked t was going for $8.50. So you know, if yo numbers to it for every $22,000 that you put up, you can pull it back 850,t o actually put that money up because you would only have to buy the stock if it pulled back to 220. But if itulled back to 220, that's roughly right where the 20 day moving average is at, which ire it bounces. So I'd be okay if the stock got put to me at 220, also if I got paid $8.50 to do it, I'm act below the 220 mark when I enter that trade. So I like thatI have to own the stock, it also pays a dividends, but then I can a turn around and sell out of the money call options against it. So that's how I would pat stock. Obviously, if it breaks down below the 20 day moving average, we'd have toreevaluateg that credit, I'd have a $8.50 cushion. And then I also could turnround and sell call options against the position. So I like to be in a spot if it goes higher, great. I'll make money. If it goes sideways, great. Iake mon it pulls back, I get paid to buy a stock that I would hught at a price. I would have liked to buy that anyway, but I actuallyt a little bit below that. I think it's a win win win. All right. NetApp at23k today is Sienna Corporation down about 2.5% on the session. But I was tracking back through what you've brought to us this year. And you brought us Sienna back in April. It was trading about 508. When you brought it to us. You were looking bullish move to the upside, and it jumped about 56% through June. Now we're lower. We're at 43392. So how you looking at at Sienna now. Are you looking for another breakout higher. Yeah. What I love about this is cool to revisit something that we've looked at before and see how it played out. So you're spot on. We bout this back in April. The AI infrastructure companies are getting all the attention. The Nvidia's, the semiconductor stocks. Like I said, I wanted to bri stocksmay not be getting much as much attention. And what I love about Sienna is if Nvidia is building the engines, if you will, that powers AI, Sienna is building building the highways thatey're these cars that these engines, that these high speed data networks need run on. And this pullback recently I look ie it pulled back just slightly below the day moving average. I'm seeing a potential double Wattern here on the chart. But more importantly we crossed back above the 200 day, which us risk low risk to high reward ratio. Knowing to 650, we have a defined stop loss if it breaksbelow 200. So I really like this great company. Again, AI and data centers needing power and energy. But then they also need a highway to deliver the information that everybody's requesting. I don't think t is a trend that's going to end anytime soon as well. All right. KG so I mean, as I'm looking at this chart, we skyrocketed up through June after Jason first brought this to us in the spring, but we've significantly fallen of those levels. So what are you seeing in the technicals here. Well I think this is probably the best chart of the best name. When you're looking at the technical setup. all of them that we've talked about here today. Did we did did we see the stock go up to around $637 and then kind of break to the downside? We did. But if you're looking at a one year daily chart, it was actually a little bit of a 50% retracement from high to low. And that's where we actually found support around the $300 level. Now, this time last year we were making higher highs, highs. We have a pullback right now. We were able to kind of leverage that 200 day maveran it comes to price. And buyers did try to stepnd they have now been able to get over moving average in this 200 d secondary downtrend. If you're looking at the highs from th ofg to break above that asl. So that's actually relatively bullish. We still also have a gap from hitting ths. There's a gap between 550 and about $610 o so. So that's something that could actually attract price as well. But if we go to the weekly chart this is where you get really bullish consolidation for the last, you know, two years, two and a half years or so before wted seeing that really strong breakout. Once again, 50% retracement back to the de, leveraging the 50 week moving average as an area of support, breaking above the 200 week or the 20 week moving average in blue. That's also very bullish. And that MacD at the bottom looks like it's about to hinge and cross into a bullish formationor the 12. EMA goes above the 26 EMA. The last time that we did this the stock ran up about almost 500% or so. I'm ning that that's going to happen this time around, but the longer term charts in the M crosses tend to actually see better follow through than some of the shorter duration charts. This one looks bullish. If you're able to get above 500, this one could once again get back to around that. 63645 level. All right JSo KG sees the most bullish setup in this chart. So howould you then trade this name. Yeah. Once being ader I love to be in a position where if it goes higher great. If it goes sideways great. And if it goes down we still make some money. So I'm looking a this as a bull put spread. So I'm bullish but I don't need it to go up. I just need it to not go down by too much. And so if you look at the November 20th, 2026 expiration, again I'm looking at buying t 340 strike price put and then selling the 350. What I like about tha 350 looking at my chart here, that puts you just below the ten and the 20ay moving average. And right around where I saw that bottom base bui So I don't think it's going to break down below that. You're get lly the net credit is $2. You're paying $4 for the debit, $6 credit coming in selling the 350. You're basically getting a $2 credit for a $10 risk spread. So that is a potential 20% return. I like those numbers even better than the previous two that I covered. And then again, you got that cushion. So this stock could pull bac ad 90 almost 100 points before it threatenst spread. You got 43 days, no earnings report or any Big You know that could really add some volatility to push it down. So I think it's a nice simple way to play a b chart but not needed to go up. But if it does great you're still in a position wher you can make some money regardless of what it does. All right. And our break even on this one at 348 right now Sienna is trading at 4.3398 even with a nearly 3% move to the downside, we've definitely got some cushion on example trade there. Jason always appreciate yo