Time to go Buying MSFT CSCO AXK QPSA
The market slowly went higher yesterday, but the move was hardly bullish. Volume ran low as SPX moved up towards 1332 resistance. Technology bounced back with Microsoft (Nasdaq: MSFT) leading the way. The software monopoly gained on rumors of a change in management. Cisco (Nasdaq: CSCO) also rallied yesterday, but I think that move is more due to its oversold condition – shares have dropped to new yearly lows this week. Despite the bearish trends for those stocks I think MSFT and CSCO are very near a bottom that should result in a 6.5% rally higher.
Oil also looks ready to rally 6.5% soon. The commodity just needs to hold $100. The rise in oil should pump up energy stocks. Since energy stocks are a large percentage of the SPX, I think that the momentum from the commodity/energy sector would be enough to bring the entire market back up to and past the yearly high.
While I continue to favor the bulls, the TradeMaster portfolio is sitting on a lot of cash. I have waited for the market test 1301 to enter a string of long trades. My concern about trading the bullish side of the market too early is that it’s a quick ride to 1250 if 1301 were to fail.
So I would really prefer to wait and hold off on new positions until I can see the price reaction to 1301 support. Without a test of that key area of support the market is more prone to reverse any rally higher from here. And with 1332 acting as resistance getting long right now may not offer a whole lot of upside.
Shares of QPSA rocketed higher Thursday afternoon
and were added to the TradeMaster portfolio. QPSA may dip to
$7.40, but I can also envision a quick run to $10. The stop is wide at
$6.45, and the price target is $12.25. That is a 50% win or could be a
16% loss.
If all works according to the play book shares should hit $8.75 next week
and consolidate above $7.85 before beginning an ascent to my target
price.
I am working on a Top Ten Trades of the month report, which I aim to have
done this afternoon. The report will have a few familiar picks from the
weekend video and some new setups. Unlike last time, this month’s report
will have bearish trade setups. Also, I will try to be clearer with
regards to what activates each trade signal; it is my belief that many of
you took positions ahead of break outs that resulted in losses. It’s fine
to take action ahead of a break out, but not recommended since my
analysis from the report hinges on the break out.
The weekend video will come out tomorrow, so check our website out this
weekend. Next week I will be at our headquarters meeting with our content
team and senior staff. And on the agenda is a launch of an options
service. We would like to hear from you; so let us know if you’re
interested in a TradeMaster options publication and what you
would prefer that service offered.
To top it off, I am offering a 50% off sale for TradeMaster Daily Stock Alerts this weekend. So if you’d like to start getting consistently profitable trade recommendations, accurate market analysis and the Top 10 Trades report at a big discount, then click HERE for details.
