(Update at bottom). The markets had another big up day. We trimmed a little into the strength to be prudent and added a bargain name etf -TECL- to boost exposure to our underperforming tech void in the portfolio. (EMC was down today on a huge up day, no bueno.) Some follow through from this rally would not be surprising considering investors bullishness from the announcement however, don’t chase here; most stocks are pretty expensive at the moment. You will get the pullback you are looking for as the market digests the news. I will send out the alerts to subscribers (free). Regards.
If you read our prior article, the 38% retracement level proved to be the ultimate support. The market has surpassed all resistance but is now over-extended from its lows. Wait for a pullback. I will let you know when I add to our names in the portfolio.
Update: Buying VALE on the pullback with a stop loss below the 20. Good risk / reward here.
Update: Stock Recommendations- XNPT (Speculative bio-tech) WHR (Housing Recovery) (BANR regional banks)
Here is Xenoport. We featured this piece before its breakout to 8 a few months ago. Now, I am revisiting this stock because it has pulled back to a good entry point. I would size into this in 2 positions: half here at 8.97 and the other half at 8.40. Put the stop loss on below 8.4 and the green line (20 day moving average). Chris I hope you like this one bud!
Final take: We got the pullback we have been looking for in many of our stocks but the market is still over extended so continue to wait for more of a pullback before placing any major bets. Regards.