By Alex Salomon
As with previous columns, let’s review trade ideas/positions and preview the week to come. You can follow most of my real-time updates and action on Twitter @Alex__Salomon where I comment on many of the stocks covered in this weekly column.
Before we attack the week ahead, though, let’s review the previous weeks’ ideas:
1. iShares Semiconductor Sector (SOXX) – “Looking for that double-bottom at $48 and a repeat of Nov./Dec. 2011. SOXX hit its first target of $52 (scaled 1/3) and still has outstanding targets of $56 and $60.” The entire week has been flat and the trade remains “on” with a stop at $52 (prior profits). However, I am concerned that many stocks and patterns are showing “stalling” patterns and might lack the gas needed to propel higher, so I will make sure the stops are in place.
2. Apple (AAPL) – “The plan unfolded! From last week: “[…] take profits at $621.50 and $640 with a $40 trailing stop. We’re on!” Profits were taken (at 2 prior targets), the position is down to the last third with a $40 trailing stop for now.
3. Russell 2000 iShares (IWM) – “The potential trade was on hold for 2 weeks: “patiently wait for a break above $80, make a failure ($79) your floor and be prepared to take incremental profits, $1.00 level at a time (profits at $81, then $82 and then a $2.00 trailing stop until it is taken out).” The position is “on” as of Friday, just as described.” First profits were taken at $81, the stop has been raised to $80 and $82 is the next target to scale the second tier.
4. Teradata Corp (TDC) – After taking profits in the prior weeks, I still have 50% of the position with a $3.00 trailing stop at $74.25 and will keep it on as long as possible (until the trail is stopped).
5. Salesforce.com (CRM), Direxion Daily Natural Gas 3x ETF (GASL), Compania Energetica de Minas Gerais (CIG), Leapfrog (LF) make up for last week’s purchases. The trading plan stays as outlined last week:
– CRM in at $144.05, $140 is my stop, my first target $150, then $160 into the August 23 earnings. Currently at $147.23, the position is up 2.2%
– GASL in at $25.38, which is also my stop, my first target is $30, then $32.50. Currently at $27.28, the position is up 7.4%
– CIG in at $19.70, with a stop at $19. The position is virtually flat.
– LF in at $11.00, use $10.50 as risk (stop) and $11.50 and $12.00 as my bullish targets (then trail the rest $1.50 for as long as possible).
For the week ahead, I remain cautious and careful; nimble remains the word. As explained before, I have decided to mostly write this column about real positions and a few review requests I might receive from time to time. As such, right now, between the positions detailed above and other swing trades, I am invested at 89% of my funds and thus, right now, I am not considering adding new positions until targets are hit and cash is freed up.
I have some pending, virtual ideas on my list, though. They include:
– ACE Limited (ACE)
– Scripps Networks Interactive (SNI)
– VMWare Inc. (VMW)
– Audience (ADNC) is solidly intriguing
– Guidewire Software Inc. (GWRE)
– Intuitive Surgical (ISRG)
– Responsys (MKTG)
All of these offer some interesting set ups but could become even more intriguing if the general market decides to pause or even correct a bit, before running higher into year end.
If the markets indeed start rolling over, Google, as highlighted in Andrew Nyquist’s Chartology, shows an interesting, appealing overextended momentum stock that I could short aggressively.
Have a great week of trading.
Disclosure: At the time of writing I own Apple common stock and calls; I own IWM; I own SOXL, a 3x ETF based on SOXX — 3x ETFs are riskier vehicles and investors considering them should carefully read the risk disclosures written by each leveraged ETF underwriter; I own TDC calls and common stocks; I own CRM, GASL, LF, CIG common stocks.
Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of his employer or any other person or entity.