Trade of the Day: American Express Company (AXP)

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Despite the issues in the market overall, the trend is still to the upside, and we do not want to buck the tape.

True, tech stocks, specifically the “FANG” stocks, continue to show weakness, and the recent announcement that Whole Foods Market, Inc. (NASDAQ:WFM) will be acquired by Amazon.com, Inc. (NASDAQ:AMZN) really took a big toll on the retail sector as well. But I do think the declines were overdone, as consumer spending is still at fairly good levels.

Judging by the declines we saw in retail stocks this week, it appears investors are preparing for a deep-freeze in retail that’s way beyond what I think is possible, so we could see some recovery in that segment of the market. The financials are also presenting some attractive bullish opportunities, as they remain fairly depressed despite having broken out since the beginning of the month.

At the intersection of these themes are the credit card companies — and today I’m recommending a bullish play on American Express Company (NYSE:AXP).

Buy to open the AXP Aug 85 Calls (AXP170818C00085000) at $1.20 or lower.

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Article printed from InvestorPlace Media, https://investorplace.com/2017/06/trade-day-american-express-company-axp/.

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