I’ve been reluctant to make any new moves, opting to play it safe and remain cash, ahead of Wednesday’s FOMC announcement where the first interest rate hike in about a decade might be etched in history.
The portfolio, since inception September 2015 or about 3 months ago is +$26,965, profits I want to protect by avoiding certain volatility this week. That said, there’s a few stocks I am watching very closely for entry and might size into anticipating an uptrend in the market and new 52 week high soon.
I think 2016 is going to be an excellent year for small caps, especially the first quarter, so I’ll produce my January Effect report soon, detailing 7 depressed stocks with the potential to double in early 2016.
But for now, let’s take a closer look at what I might do this week.
GLUU – Found buyers with the market Monday, always a good sign. Using Monday’s low of $2.72 as a stop loss I’m looking to position into this oversold chart and trade for the middle $3’s in the coming weeks.
PPP – The strong dollar, up in anticipation of an interest rate hike, has weighed on gold and the miners. I believe the runup in the dollar is due to snap which could trigger a squeeze in gold and the miners soon. I’m watching PPP as my play, looking for entry above $2, stop loss below and profit on the way to $3.
CHK – Probably my favorite play in the energy sector right now, I think something around $4 should be good for a move to $5 soon. Stop loss below $4 and try again later, don’t ride energy stocks lower, just a few week hold looking for the bounce.
GRPN – Starting to press the gap this is top my list for a nice move if the recent high of $3.18 breaks. The space keeps getting smaller and smaller at competitors pack up their bags and move out of the space, thus giving Groupon an opportunity to monetize their huge footprint.