Wednesday’s Recap: A gain is a gain however small it is. In a rather choppy trading, major indices eked out small gains to close in positive territory two days in a row in over a month! Dow closed up 4 points, S&P gained 1.7 points, and Nasdaq fared slightly better gaining 13.4 points. Dow failed to clear 7000, ending at 6930, S&P closed at 721.4, and Nasdaq stood at 1371.6 by the end of the day. The financial and technology sectors held up OK, while the energy sector gave up as crude dropped 7.4%.
TaurusTrader again had a great day! MS gapped up at open, way surpassing our target exit price. I closed MS position immediately after open at $22.68 for a profit of 20.1% in less than 24 hours. BIG received an upgrade this morning, and our April 15 call (BIGCC) hit our target of $5.10, for a net gain of 70% in 4 trading sessions. I suggested buying BIGCC on Friday the 6th, for less than $3.00.
Our picks for today, DRYS and MBT did not hit the entry limit, hence were not bought.
As of the end of March 11, TaurusTrader swing portfolio had following positions:
1. CPRT – filled on March 10 @ $27.60, closed today at $28.19 for an unrealized gain of 2.1%. Target $30.30
2. WDCDV (WDC April 12.50 call) – filled on March 6 @ <3.00, today’s close $4.30, gain 43%. Target $6.00
3. WDC – filled on March 10 @ $15.30, closed today at $16.57. Unrealized gain 8.4%. Target $17.10
4. SOHU – filled on March 10 @ $46.17, closed today at $49.06. Unrealized gain 6.3%. Target $50.50
5. BMC – filled on February 24 @ 29.46, closed today at $28.53. Unrealized gain -3.2%. Target 32.00
In the past few days, we closed out MS (twice), C, SWHC, JOYG, BIGCC, WFC, and MELI for some hefty gains. At the same time we also took some losses from UYG, PALM, PBR and ATHR after being stopped out (Please refer to my earlier blog posts).
Focus list for Thursday, March 12: Next couple of days will be pivotal that might determine the direction of the markets for the short run. Number of market influencing events will be taking place – 1) Traders will be watching the congressional debate tomorrow on mark to market accounting practice, 2) Treasury secretary Tim Geithnerwill be testifying before senate budget committee tomorrow, 3) advance retail sales for February are due tomorrow, along with January business inventories, and weekly jobless claims data, and 4) G-20 meeting on financial crisis and to devise coordinated efforts to mitigate the crisis.
I’ll be watching the following stocks to add to TaurusTrader swing portfolio:
1. FCN – buy above $47.80, Target $52.00, Stop $45.15
2. MDR – buy above $13.40, Target $16.00, Stop $11.50
3. BX – Buy above 6.31, Target $7.50, Stop $5.40
Energy stocks might see some volatility heading in to OPEC meeting over the weekend. Technology stocks are expected to gain more on advances already made. Banking stocks might fluctuate widely during and after the mark to market congressional hearing. Ag and fertilizer stocks are on tear, and I expect it to continue. So, I’ll be concentrating on following stocks for quick day trade and swing trade opportunities:
HP, HPQ, MELI, WFC, JPM, UYG, MON, AGU, and IPI.
If there are questions or comments, please do post …
Happy trading ….