Wk5: Stocks to Watch

26 Jan

To recap we are still long MYGN, GILD and short HUBG. ASEI and AXP hit our profit targets with nice gains. BMRN could be actionable long over the high of the low day, which at this point is Thursday’s high. With stocks like SIVB, RL and SINA that gap on the open you need to look at your risk to reward and see if the stock is still at a low risk entry point.

Wait for the first 15 minute bar to close before placing a trade.

This is a vital rule for our trading strategy because it allows for somewhat of a market direction to be established off the open. For now stay cautious with small manageable position sizes.

Wait for pullbacks to go long in AEM ($50 level), ABX, and TNH.

RTN (long)
Ascending Triangle
Entry: Above high of low day, $51.47
Stop: Below last swing low, $49.82
Target: $54
Option Play: Feb 50 Calls
Comments: This ascending triangle has touched its “ceiling” twice. If we see resistance a third time it may pullback to make another higher low before breaking out. Also notice how the volume is increasing as the stock moves higher.

SGR (long)
Ascending Tri/Bull Flag, depending on how you look at it
Entry: $28.07
Stop: $24.55
Target: $31
Option Play: Feb 25/30 Calls
Comments: SAFM has developed a nice base at the $25 level. Any breakout above $28 and the stock should push higher.
AU (long)
Break of Resistance
Entry: $28.28
Stop: $24.40
Target: $30, or until it stops going higher
Option Play: Feb 25/30 Calls
Comments: We placed a wider stop on AU. Once the stock breaks out we will move the stop under the low of the breakout day.
IFF (short)
Break of Support
Entry: $27.45, or anywhere at the $27-$28 area
Stop: $29.27
Target: $25, or until the bulls begin to show buying pressure
Option Play: Feb 30 Calls, very low volume, shorting stock may be a better option here.
Comments: We like this stock on a break of support. While support is a subjective area, we can watch for relative strength or weakness to confirm our entry. If the stock is holding at these levels and the market is falling we will pass on the trade.

2 Responses to “Wk5: Stocks to Watch”

  1. Justin Maciuk January 26, 2009 at 4:57 am #

    Enjoy the watchlist everyone! Have a great week!!

  2. Tim Racette January 29, 2009 at 12:24 am #

    At this point, while RTN may be holding its support level. A lot of selling pressure has come in to the stock and with a big market rally the stock is not performing. If you are long the stock, have your exits defined ASAP.

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