Weekly Review and Watch List

The market is due for a pullback and Friday may have been the start of a short-term reversal.  As the trend may be changing, I'll probably do a lot more watching to see where things go.  Its tough to have patience when you're expecting a pullback in the markets. So, I've been a little quick to sell in this environment.  However. I've realize that I need to exercise a bit more patience when stocks are working in my favor.

Here's a summary of last week's calls:

EGHT - I took position in this on Wednesday as it started to break out of its flag at around $4.52.  I got stopped out at about break even. 

ROYL - I bought some of ROYL at $4.55 on Wednesday with the anticipation that it would break upward out of its wedge pattern.  My stop was at $4.36, which triggered on Friday.  This was frustrating because the stock rallied a bit into the close and closed positive.  It still has potential to move up from here.

DEXO - I bought DEXO on Tuesday at $1.81 to see it close at $1.90.  Because I was worried about the overall market being overbought, I closed my position that day.  Unfortunately for me, the stock moved up the next day and ran to $2.23 at the high.  So instead of a 20% gain in 2 days, I settled for a 4% gain on the same day. 

NLST - This had a big run past $4 as I mentioned in prior blogs.  I didn't take a position here as I missed my ideal entry and didn't want to chase the stock price.


Here's what I'm looking forward to:

DNN - I like the way this stock is looking.  I took a small position on Friday at $1.90 as it was breaking out of its wedge pattern.  I need this to hold its lateral support line at $1.70 to stay in the position.  That's a pretty loose stop, but an upward move could take this to $2.50, then $3.

Entry = $1.90 (Currently at $1.86)
Stop = $1.70
Target = $2.50

VZ - As noted a couple weeks ago, VZ is in a short-term down trend within a larger uptrend. I'm watching for a pull back to the $37 zone, where we see double support from the long-term uptrend and long-term lateral support. It also would represent a short-term double bottom.  A bounce at that level could take this stock to the $40 range within a month or two.

Entry = $37
Stop = $36 (You could go a little tighter at $36.25-.50)
Target = $40

~JP