If you’re part of my Swing Trading service also then you saw my note today about being in the hospital with my wife as we’re looking forward to having our first child! As those of you with kids can imagine, there’s a lot going on over here on my end so I really don’t know what is going to happen this week.
I’m always committed to making our service the best out there. Some expert traders I work with will be stepping in and helping out this week with new ideas and trades so look forward to that.
We locked in 10% yesterday on GLUU which we held over 2 weeks. That is the perfect type of trade for this newsletter if you ask me. The entry was very flexible and the stock traded ideally after the alert. It was an “easy on, easy off” ride for 10% on a stock that you could have bought $1000 or $100,000 worth without trouble. Who doesn’t love that?!
I still have FCX in the portfolio and hope to see that above $9 again soon. After the rebuy, my average is $8.45 and I was back to even at one point on Monday before the stock slipped lower again. I’m confident it’s just a matter of time before this is another winner. 76% institutional ownership and lots of insider buying lately. Carl Ichan and several other hedge funds have been taking positions in FCX lately so we’re in good company.
For the week ahead here’s the stocks I’m looking for potential new positions.
BIS is one that I have mentioned a few times recently and now I’m really close to buying. I think $29 is going to prove to be the base for this and I’m thinking mid-$29 range is where I want to buy my first piece. BIS is a bet AGAINST biotechs. My theory is that they are running out of steam and are due for a drop again.
BHP is a very beaten down mining stock. The recent troubles in Brazil for them as well as lower worldwide commodity prices have really taken a toll on this stock. The stock currently has a nearly 10% dividend as a result of this recent price decline. Management is adamant about defending this dividend and I think the company has a lot of weapons at its disposal to ensure it has enough liquidity to ride out this storm. I think yesterday was the bottom on BHP unless something else terrible happens. I plan to get started on this around $27 with a stop under $25.50.
ERY is another bearish play I am looking at buying again soon. This stock is basically betting against the biggest oil names out there. As crude oil prices continue to decline, this is going to take it’s toll on the producers. The market is still trying to paint a rosy picture for 2016 for the oil guys, but I’m just not buying into it. I think ERY in the low $21 range is a good start.
UVXY is also looking like it is close to a near-term bottom. This ETN is a bet that market volatility is going to go UP, which I truly believe is the case as we get closer to the Fed decision in a few weeks. The markets are very complacent right now and that can all change on a dime with any negative news hitting the tape. My plan is to start on UVXY in the upper $25 range if we see it today. This is a short-term play only. Never hold any VIX related stocks more than a week in my experience and always stick to a stop loss.
Have a great trading day!