Stocks were up intraday today, but sold off some of their gains before the close. Still, we booked modest gains across the board. Much to my surprise, Target (TGT) posted strong quarterly earnings. TGT rose 2% in big volume to close at $51.95.
The Nasdaq cleared it's 50-day moving average today. A recent series of higher highs and higher lows has the Q's (QQQQ) poised for a rally if it can remain above its 50-day over the next 5-7 days.
In yesterday's post, I mentioned Agrium (AGU). It closed today just above my buy point of $69.20 in brisk volume. It had a healthy close today at $69.87 and, yes, I like it at this price.
The stock I'm looking at today is Cliff's Natural Resources (CLF). It's seen a big move in recent days, but I think the momentum is still clearly behind it. I'm looking at it from a value standpoint. It's currently around $63 per share, but this stock has room to move into the $72-$75 range between now and the end of the year. I'd recommend scaling into a position and buying on some pullbacks. $63 is a good entry point, but if given the chance, I'd pick up some shares between $58 and $60 (assuming the volume on the pullback is light). In light of the recent volatility, I'd use a stop to limit my losses. I'm using tight stops these days, somewhere around 2% - 3% of my entry price. I'd rather get stopped out than suffer a deep downdraft.
Thoughts? Suggestions? Comments welcome.
Obligatory disclaimer: This blog is for information only. Past results do not guarantee future performance. All financial decisions involve risk and there are no guarantees. The suggestions above are simply suggestions and the blogger is not liable for any losses incurred as a result of actual investment activity on the part of the reader.
Happy Trading!
Wednesday, August 18, 2010
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment