New position: long ERF

Bought shares of ERF today at 10.41. Discovered the stock after yesterday’s high volume breakout above the 10.20-10.30 area. Over the past 13 months ERF has approached the area a number of times and pulled back. Yesterday it broke above the resistance area and did so on 2.7 million shares volume vs a 10 day average of 870k. So at this point I at long from 10.41, will consider adding some more shares on a pullback into the 9.60 range, targeting 14+ to take profits and using 8.2 as a stop loss.

ERF weekly chart

What to look for in 2018

Refresher: What to look for in 2018? Multi week/month breakouts like the ones below.

Successes from 2017:

LULU

LULU weekly chart of 2017

TRP – high volume breakout

TRP daily chart Feb-July 2017

Missed opportunities:

PLCE – high volume breakout

PLCE daily chart Apr-Dec 2017

INTC

INTC weekly chart of 2017

VOD – high volume breakout

VOD weekly chart of 2017

 

What’s the next one?

SD – high volume breakout in progress

SD daily chart

OTEX – high volume breakout in progress

OTEX daily chart

Nice LULU profits after recent earnings

LULU announced positive earnings after hours on Wednesday 12/6 and with the stock surging on Thursday I sold most of my position, about half on the open at 73.23 and a quarter at 72.10. With my original target around 71.50, anything at these levels is icing on the cake. Looking to close out the position on continuation to the upside or if it breaks below Thursday’s low of 71.29.

LULU daily chart from 12/8/17

Gearing up for LULU earnings

I’ve been holding LULU since October 23rd when it broke out of the 4 month range of 56.56 and 63.86. Initial buy was at the price of 64.24 and then added some on November 2nd at 60.89 for an average price of 63.15. In planning the trade, I targeted approximately 71.50 to take profits and using 59 (low price of 10/18) as a stop.

LULU ended the trading day today at 66.36 and is scheduled to report earnings tomorrow, 12/6/17, after the bell.

LULU daily chart from 12/5/17

Watching QCOM Once Again

Stock QCOM

QCOM Daily Chart

QCOM (still fresh in my mind from some nice profits in February) caught my eye after Friday’s trading session for having unusually high volume and what looks to be a potential bullish reversal signal. The stock transacted over 34 million shares versus a 10 day average of 14.4 million shares. Also worth noting the monster intraday reversal with the stock having a significant gap down opening at 51.80 (Thursday’s closing price was 53.21) and a brief selloff down to a low 51.05 which occurred about 10 minutes into the trading session. From that point, the stock began to climb higher for the remainder of the session and close at 53.74. [The volatility for QCOM in Friday’s session seemed to be caused by news which broke premarket regarding the company revising down on its forecast due to a lack of licensing revenue related to an ongoing legal battle with Apple.] If QCOM continues higher on Monday and breaks above Friday’s high of 53.95, I would be interested in opening a long position around 54.10. From there, looking for the stock to make a run towards 58.67 which was the high from 1/23 and also where the stock found resistance in mid March. On a pullback below 53 I would look to add more shares of QCOM as the area around 52.70 has provided support on a number of occasions in January, February, and April. Friday’s low of 51.05 would be the stop area, which also represents the low of 2017. Based on these levels I am looking to position size based on two possible scenarios: 1) If I buy only on the initial breakout I am risking about 1% (portfolio) to make about 1.5% and 2) If I buy the initial breakout plus the pullback I am risking about 1.5% to make 3% and thus achieving my goal of a 2/1 reward/risk ratio.

This trade could potentially catch the next QCOM dividend as it goes ex div (0.57) on 5/26. Earnings out of the way until 7/19.