The market is still very choppy from day to day and you never know what type of news your going to get from Europe to disrupt any short term momentum. Since there is not clear indication of direction over the next couple weeks, its good to keep your positions small and don't get too greedy. Look for low risk entries that allow you to get into a position and get out quick if it is working against you. There have been a lot of failed breakouts...or a lot of volatility around the breakout that may stop you our quickly. Therefore, I've been looking to buy dips in stocks that are showing a short term uptrend and appear to be bouncing off of those trendlines.
Here are a few that I've played or are considering:
MSFT - as noted in prior blogs, the stock is coming up to my first target. Depending on how the stock acts, I may get out in the mid $26 range, around the upper trend line. Closing above the 50ma should make that happen.
VRTX is a stock that i bought and sold last week, but could have more upside to it. I bought around $31.20 as it was breaking over some recent resistance and sold on Friday around $33.75. It might be able to push to the $35 area, but i didn't want to take my chances since it moved over 10% in a short period
CYT - This is looking like a nice pattern that could bounce off its lower trend line and has clear overhead resistance that, if breaks, could lead to a move into the low $50s. Look for some strength on Monday. I'd buy on a break above Friday's highs with a stop around the lower trend line.
BZH - This stock formed a nice daily candle that bounced off its lower trend line. If we see a red to green move on Monday, or strength in the market, this could move to the top of trend line pretty fast.
Hope everyone has a good Christmas
JP
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