Stock Picks and Trade Ideas for Friday
Market Commentary: The market pulled a fast one on the trading community today. Opening lower, the major indexes caused a hint of selling that began to slowly subside by noon. Todays awe inspiring close was mostly carried on the backs of consumer stocks (mainly retail). As you may have noticed, retail stocks have been some of the top performers (just look at JCG, LIZ, PSUN, etc).
Buy Candidates:
Retail Clothing: DBRN, DSW, JOEZ, PSUN
(arguably one of the strongest groups, as most of its stocks are making new highs)
Media: GTN (add to), SBGI
Paper/Paper Products: BKI, BZ, KPPC
Disk Storage: HILL, QTM, XRTX
Speculative: LEAP, PCS
Battery Stocks: HPJ (pushing its luck), POWR, PWER
Furniture (Retail): HNI, NTZ, TPX, ZZ
I will continue to post more stocks and industry groups sporadically throughout the evening as I am juggling several different tasks....
posted by Nick M. @ 4:26 PM
16 Comments:
Hey Nick,
Looks like you are having fun in this market... I can't figure out why I am under performing though :)
Anyway, I was curious if HERO popped on your radar yet? Nice strength, but wanted to get your opinion.
Thanks as always, and just so you know I am always reading your blog, not have had much to say though.
Andy
Andy,
This is a tough market to trade. My luck is starting to run out and I am noticing that a lot of my new positions are going against me. One of the best methods for improving market performance (and beating the market) is to be super selective of the your trades, buying at the right buy point so that the trade is not over extended (to minimize risk, maximize potential gains) and timing the market.
Right now, HERO looks okay for a very short term trade. I wouldn't risk to much on it though. I would say a stop just under 6 would be okay. HERO looks seems as though it doesn't give much room for a dip. What attracted you to it?
I took another look at the chart and I do think that it may have enough thrust to go to at least the low 7 range..just be careful with your entry.
HERO has been on my watchlist since IPO really and I did play it a couple of years ago. Insider buying got me into it again, then the secondary pricing seemed strong too. This week the strength was quite noticeable and I traded in and out for a point and a half gain.
Hey thanks for the thoughts!
Good buy post. Let's hope we can get the volume today.
I'm in Puerto Rico right now trading on, and getting real-time quotes with my iPhone. Technology today has done INCREDIBLE things for our reach! :)
Take care,
Chad.
Trading from Puerto Rico! Lucky guy! Hows the weather over there? I am planning to possibly go to Aruba or Tobago in the winter for a mini-vacation. It is much needed!
And yes, I technology is good...gotta love it. I've used an i-phone to do some trading and I have to say that it is very easy to use. Not like the smart phones from several years back...enjoy Puerto Rico
BTW, bought some AMZN earlier this morning at 112.90
BUCY gaped up. I never took that position, but it was setting up nice, like you said, over the last few days.
Puerto Rico is beautiful; low 80s, nice breeze, ocean everywhere. Before NYC, I was living here, working for the Coast Guard, when I first started following your blog a couple years ago, so I'm no stranger to the island.
Aruba's on my short-list! Anything is a great break from the winter though!
Wow, AMZN! I just read the press release about their earnings and checked the chart. It's funny too, when you look at how moves start happening before the news, there was a relatively high volume, indecisive, shake-out yesterday, and today it gaps up almost 20%.
I've never been a fan of buying the gaps. Aren't you worried about the gap fading?
-Chad.
I noticed the construction group moving well as a whole. I didn't get a chance to grab BUCY either. It is hard to follow so many positions and be able to buy all of them. Hopefully someone took advantage of it.
It must had been quite an adventure to be in the coast guard in Puerto Rico. How was that like. Tropical island life must had been good. What made you decide to head to NYC? BTW, I am from NY as well.
Can't wait until winter break. I will be done with classes and as long as I save some cash on the side, it should be a go. I don't mind taking a break from the markets madness for the holidays!
Usually gap ups are traps and they get filled, but in this market anything goes. I have seen gap ups with breakouts the next day. It may take several days or weeks for the stock to gap down from such a gap up. If the stock closes near the HOD, it will most likely go higher. In any case, for insurance, I have a stop ready. So far so good.
On another note, I am not very happy with the way the market is digesting the positive earnings from the AMZN and MSFT. I expected a more positive session. Then I take a look at the VIX with its rounding bottom and realize that we are pushing our luck...
Andy,
If you are interested in buying HERO, now is your chance since the stock is at the low. You can get in for a low risk entry. If things don't go well, you can get out with just a scratch...
Hey Nick,
I was thinking the same thing about market performance today. I was expecting/hoping for better.
Puerto Rico, living and working for the USCG, was a great experience. I still work for them (which is why I moved to New York), and in the last 10 years I've lived in San Fran, Alaska, Florida, Bahrain, PR, and now New York. It's a good gig, pays for my school, and let's me follow all my business passions on the side; so I don't complain!
I know what you mean with BUCY; you just can't be in every position you wan to be in! ...but then that's probably good some times ;)
I hear you. I wish I wasn't in HPJ, that's for sure...
Overall, a nasty day. I bought some NFLX at 54.56 on the strength of their earnings. High quality stocks ruled today while junk, speculative and China-related stocks plummeted.
I did buy back some HERO at 5.80. Not a great chart on Friday, but the order auto-executed. Not sure I would have bought these had I been watching the price action.
Sell if it closes at LOD on high volume
Post a Comment
Subscribe to Post Comments [Atom]
<< Home