For various reasons, I didn't play any of last week's setups (from last weeks blog post). Each stock had good opportunities, but I don't have a lot of confidence that this market can continue to move up day after day. I expect a short term pullback to around the 1267 area on the SPX. A pull back and consolidation in the indexes would allow for a strong move up to possible test the all time market highs. There's a lot that can happen before we get there, so I'm cautiously optimistic.
VZ - we were looking for a $36.50 entry point, but it only got down to just above $37 before it ran up above $38 in the next couple days. The short term channel, since the beginning of the year, indicates that this could still hit $36.50 or its 200 day ma ($36ish) over the next week or two before the next bounce. we'll keep an eye on it.
HPQ - This was another good call with a dip by around $27.25. The low was $27.23 on a gap down before it ran up to close positive and continue on for the remaining of the week. Its now sitting at $29.07 and looks to be heading to its 200 day ma at $30. A break above that could see this run to the mid $30s. I won't be playing it, but will watch to see what happens.
NLST - This had a nice move on Friday after hitting the $3.15 target early in the week. This may try for another run at $4 shortly.
X - Earnings created a pretty volatile day, but created a good opportunity to buy in on the dip around $29. On earnings day, the stock gaped up, then pulled back which would be a good opportunity to buy. Since then, the stock has moved up and is closing in on my target of $33. Too bad i missed this on too.
The charts tell me that there are still a lot of opportunities out there. I'm not sure when we'll get the pullback, but you gotta play what's in front of you until the market tells you things have changed. I've been taking smaller positions and limit the positions that I hold overnight. This will keep the risk controllable in the event the market sells off.
Some new positions I'm watching are:
DEXO - This is a bit of a tricky stock, but Friday had a strong move early that faded throughout the day. The price is sitting on the 50 day ma, which will be crossing the 200 day ma shortly. It's also sitting on its long term uptrend line. For this one, I might enter early with a cross above the 200 day ma at $1.76 and set a stop below the recent lows around $1.65 or its 50 day ma, $1.69. Target would be around $2.25-$2.50.
ROYL - I'm looking for this stock to break above $4.92 for entry. Target $5.12, then $5.50. Stop $4.84.
EGHT - A flag if forming here after an earnings breakout, which is a good catalyst for us to see a continuation. The buy point is $4.50. My Stop looks to be below the 20 day ma at around $4.38. Target will be $5, but could go as high as $5.50+.
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