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.
Got stopped out of CROX and WETF today. At least we have the long weekend to regroup. Happy Easter.
Going exactly to plan, closed out the remainder of NUS today at 55.25 with an average exit of 54.80 (from 51.10 entry on 3/15/17) for a 7.2% gain. Summarizing the trade, I went long based on the signals demonstrated in early March including high volume, oversold stochastic, and clear resistance level of 51 (see horizontal line above in blue). This made for easy entry at 51.10 and happy to take profits as NUS approached my predetermined target of 55. Looking for the next winner.
Had my eye on WETF today and bought shares at 8.93 as it continued through yesterday’s high of 8.87. Yesterday’s signals including high volume, close above 8EMA, strong bullish candle, and oversold stochastic could be indicating the beginning of a move up towards 10. From here, I would consider adding more on a pullback into the 8.60’s and using the low or 8.30 from 3/27/17 as a stop area. Targeting 10 to take profits.
WETF caught my eye today on much higher than normal volume (19.3MM shares vs a 10 day average of 1.7MM) and the chart looks to be possibly forming a bottom. I like today’s close above the 8EMA and that it is coming out of the oversold stochastic territory. WETF found support in the 8 dollar range in November 2016 and therefore would be logical to happen again in the same area. I’m interested in going long if tomorrow’s session can break above today’s high of 8.87. Would be targeting at least 10 to the upside and would cut and bail if it falls beneath yesterday’s low of 8.30.
- 3/29/17 update – Long WETF at 8.93
Been following NUS for a few weeks and opened a long position at 51.10 on 3/15/17. Sticking with my original strategy, I took partial profits today at 54.72 as I believe the area of 55 will act as some sort of resistance. From here, will close out the position on a pop above 55 or if it pulls back enough to break the short term up trend.
- 3/29/17 update – Sold half of remaining NUS at 54.93
- 3/30/17 update – Closed out NUS at 55.25 for 7.2% Overall Gain