The Hit List is a look at our current swing trading positions. Stocks we are already in have “triggered”, while those we are considering for plays have not triggered. Click post title to view print-friendly link.
EBIX triggered, JOY removed (no trigger), COH & P stopped, MGM added
Open Position Notes:
CRM bounced again Friday but essentially just filled the gap from Wednesday, which is not out of the ordinary to see. This stock remains in a downtrend and I’m staying with it for now with my original stop still in place. I will be most interested to see how quickly it weakens the next time it faces some selling pressure, as that may give a better indication of how intent it is on heading lower. For the moment, it’s holding above support and may simply be carving out a new low-level trading range.
EBIX triggered a buy on Friday as it marked a multi-day high and cleared the trend line, but there was no follow through and the stock instead fell right back into its short-term base. My initial stop is still in place for now, as a move beneath that level would negate this pattern and therefore be grounds for dismissal.
Closed Positions:
COH rallied enough on Friday to push through the $62 area, triggering my stop as it made a multi-week high to exit the descending channel to the upside. That was to be expected at some point, as descending channels tend to be resolved to the upside, but I had been expecting one more move lower within the channel, particularly after Tuesday’s decisive move lower. I’m out with a modest 2.3% loss, and will leave this one alone until it sets up for another play.
P triggered a buy Thursday and held nicely above the trigger area, but on Friday fell right out of the gate to hit my stop, taking me out of the trade for a 3.3% loss. These lower-priced stocks can sometimes bring quick reversals in this fashion, but this was a setup which had some real potential and therefore one which I felt was worth taking. I’ll leave it on the radar in case it shapes up in the days and weeks ahead, as it does seem to have found support for the time being – it just apparently isn’t quite ready to rally yet.
