Good evening StockBandits!
Just wanted to give a position update tonight (since there is no Broadcast) on the heels of a big day in the market. The Fed initiated QE3, which means more of the monetary stimulus that stocks love. The promise to keep rates low means money has one place to go for those seeking a return, and that’s into stocks. The market vaulted higher on the news, and we saw solid breakouts across the board with new 52-week highs established in the DJIA, S&P 500, NAZ, NAZ 100, and RUT.
I’ll cover my notes on existing positions down below, but in terms of new setups tonight there isn’t anything to add to the list. I’m still stalking CREE for an entry, waiting to see if it can clear the trend line at $28.30, but other than that there isn’t much to choose from out there. Many individual names are now stretched and need some time to digest the move.
Momentum is running hot, but it’s never wise to ignore the notion that the easy money for this particular move may have already been made. Stated otherwise, the farther a move carries, the more profits there are to protect should some selling kick in. Keep that in mind and stay selective after a big spike like this.
A few other bullish names to add to the watch list include: LULU, NOG, DFS, RVBD, CRI, and Z.
Trades Overview:
This list is a look at our current & potential 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.
HAR Target 1 hit & stop tightened, TPX triggered
Open Position Notes:
HAR has been churning for several days to digest the recent rally, but as I noted last night the strong finishes indicated the bulls were still around. Today we saw strength return, taking this stock past Target 1 where I was able to close out part of my position for a nice 5.2% profit. Ringing the register on gains to make them real (not paper) is nice, as is the chance to reduce risk in the remainder of the position. I did the latter as well, tightening my stop this evening for the shares which remain while I await a push higher into Target 2. Good price action so far, now a bit more of an extension in price would really pay off.
TPX triggered a buy today as it exited the channel highlighted here last night, and it did so in style. Today’s lift was strong as price stretched its legs a bit, which is always nice to see on the initial day of a trade. I’ll be looking for some follow through now that it’s on the move, so if this one can reach toward Target 1 then I’ll look to make an adjustment to my stop. Nice start to the trade though, let’s see if it can continue.
Closed Positions:
No closed positions.
Go get ’em Friday and I’ll see you back here over the weekend.
