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.
MOS Target 2 hit (position closed), SOHU triggered, NEM removed (no trigger, pattern negated)
Open Position Notes:
DRI gapped down this morning and continued lower before turning back up to fill most of the gap by the closing bell. It finished just slightly negative on the day, and continues to hold up. Nonetheless, it still hasn’t shown the follow through I’m looking for since it triggered. I’ve already adjusted my stop loss to reduce risk in the trade, and that level was validated today as price came nearly down to it, so I’m going to stick with that level for now while waiting for strength to return. All in all, this pullback has been minor and volume has been quiet on the dip, I’m just doing my best to be patient while I wait for confirmation of a turn higher.
SOHU triggered a buy this morning, and initially it showed some hesitation. However, the afternoon brought with it plenty of strength for this stock, and it finished nicely higher on strong volume while the overall market sagged. Today’s relative strength is encouraging, so I’m on the lookout for follow through in the days ahead. My stop is already rather tight, so I’ll leave it as-is until I see further strength in this stock. Decent start today though with the overall market not helping at all.
Closed Positions:
MOS powered higher this morning with excellent early strength, taking it right up through Target 2. In fact, the stock only moved $0.10 past that level before it pulled back in the afternoon, which really makes this a sweet trade. I closed the remainder of my position into the $52.30 level, booking a very nice 10.8% gain in just 6 sessions. The stock is becoming extended here, so I’m going to stand aside and wait for a new pattern to emerge before looking to re-enter.
