Thursday’s Recap: WOW!! What a rally … three days in a row ! It did not look that promising at the open, when Dow opened up in the red. But as the day progressed, major indices steadily picked up steam and ended the day in solid green. Dow gained 240 points or 3.5% to close at 7170. S&P gained 29.4 points or 4.1% to close at 750.7 where as, the tech heavy Nasdaq gained 54.5 points or about 4% and closed at 1426. Crude gained 11.1% to close at $47.03 lifting energy stocks. Banking, technology, and energy sectors gained the most.
In the past 3 days, Dow vaulted 622 points or 9.2%, the biggest 3-day jump since late November. Nasdaq too gained 12% in the same period, which is its biggest 3-day rally since late October.
S&P’s close abobe 741 (November 21 low) is technically noteworthy, as this level might support any pull back in the future. The next major resistance for S&P is about 790, or the 50-day moving average.
TaurusTrader portfolio also had a impressive day! In the past 3 days, 5 of our picks (WFC, BIGCC, WDC, MS, and JOYG) hit their profit targets, and all remaining picks have positive unrealized gains. The WDC position hit its target of $17.10 today for a nice 11.8% profit in little over 2 days!
From yesterday’s watch list, FCN and MDR were bought today. BX, DRYS, and MBT are still on watch since their entry price are not triggered yet.
As of the end of March 12, TaurusTrader swing portfolio had following positions:
1. FCN – filled on March 12 @ $47.80, closed today at $48.19. Unrealized gain 0.8%. Target $52.00
2. MDR – filled on March 12 @ $13.40, closed today at $13.94. Unrealized gain 4.0%. Target $16.00
3. CPRT – filled on March 10 @ $27.60, closed today at $29.51 for an unrealized gain of 6.9%. Target $30.30
4. WDCDV (WDC April 12.50 call) – filled on March 6 @ <$3.00, today’s close $5.00, gain 67%. Target $6.00
5. SOHU – filled on March 10 @ $46.17, closed today at $48.08. Unrealized gain 4.1%. Target $50.50
6. BMC – filled on February 24 @ $29.46, closed today at $29.55. Unrealized gain 0.3%. Target $32.00
Among the day trade picks – HP, HPQ, MELI, WFC, JPM, and UYG provided quick profitable trading opportunities.
Focus list for Friday, March 13: I would trade carefully tomorrow. Stocks and major indices have gone up too much too fast. Some pull back from profit taking may be expected heading in to weekend. I will be looking to add the following stocks in tomorrow’s trading –
1. WSM – Buy above $10.10. Target $12.10. Stop $8.90
2. RY – Buy above $27.70. Target $30.50. Stop $25.60
Also interested in are stocks that are not filled yet from past 3-day focus list – BX, DRYS, and MBT.
Financial, ag and fertilizer, mining, and technology sector stocks will be watched for day trade opportunities, and those stocks include:
FAS, BAC, AGU, IPI, RIO, JOYG, HPQ, SY and CTRP.
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Happy trading ….