Good morning.

Nice +5% +$1,000 win on GRPN Monday. I thought about keeping my shares long term but with the market right at trendline resistance and threatening a breakdown at the SMA 200, I felt it wise to lock up the easy win and just come back to it.

JNUG was last week’s big winner from the watch list, hitting the $12 target Wednesday on it’s way to $12.60. Sadly I missed JNUG but no crying over spilt milk.

Here’s the watch list for this week.

HOTR – Solid growth story with the consensus price target of $4.98. With earnings behind and the stock oversold, I’m definitely looking for entry down here. I anticipate this would be a few weeks to a few months hold time for profit.

GRPN – Still like this trade idea long term and am looking to rebuy if it slips back into oversold. Interested in anything around $4 with a goal of $1 / share across a few weeks to a few months.

FNMA – A true long term trade idea I’m looking to position small here and ride it out for the long haul. Upside could be a 10 bagger so maybe 7,000 shares above $2.20 and let it ride. Big money like the Fairholme fund are interested in seeing the conservatorship go away and if that ever happens, the juicy profits return to the shareholders which is when this goes from zero to hero. This is the best true long term trade idea in the market that I can see right now.

Your Friend,

Jason Bond