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Trade of the Day: Wendy’s Co (NASDAQ:WEN)

I'm expecting the market to break to the upside


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One encouraging sign for the market is that the Nasdaq has been zooming upward and has broken out of the trading range it was in since the start of May. This was good to see, and I think the S&P will also break out to the upside eventually.

Another positive for the market is that the velocity of money is improving, meaning there is more liquidity out there in the economy. For the last eight years or so, it had been pretty slow, but it’s starting to turn around.

It’s also worth noting that international markets are doing well right now — better than the U.S. in fact — and that’s a positive for the global economy in general.

If the rest of the world is doing better, that also helps the U.S. over the longer term. And now that the outcome of the French election is known, investors should be able to make decisions with more certainty.

So, today I’m recommending a bullish trade on a stock that recently turned in a strong earnings report: Wendy’s Co (NASDAQ:WEN).

Buy to open the WEN Aug 16 Calls (WEN170818C00016000) at $0.75 or lower.

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