With equity markets approaching new highs and with the VIX also approaching a dangerously low level, I thought it might be time to update our sample stock portfolio. With the markets closed today these are Friday’s closing prices:
El Paso (EP) : The $14 price point was duly breached on Friday with the stock closing at $14.14, holding well above all four moving averages and well supported by good volume. The technical picture for the stock now looks strong with a good platform of price support below and with the market makers having bought in volume in early November this now looks set to rise further so a medium term hold.
Ameren Corp ( AEE ) : Back at our buy price, closing on Friday at $28.19, having consolidated in this region since late December and the beginning of this year. Will continue to hold and any break above the 40 day ma at $28.75 will confirm a pick up in momentum. Being mildly bullish this stock is a good candidate for a covered call option.
Helmerich & Payne (HP) : This stock continues to higher, closing on Friday at $50.76 & continuing to hold above all four moving averages and moving with a strong trend. Continue to operate a trailing stop loss to lock in profits & so far has delivered a solid return.
General Electric (GE) : GE continues to perform extremely well rising to close on Friday at $18.82 with excellent support from the 9 day ma. The stock looks set to continue higher so hold & move up stop loss position to lock in profits.
Alcoa (AA): An interesting week for Alcoa which hit a weekly high of $16.71 before closing on Friday at $15.97. The concern here is the level of volume on both Tuesday and Thursday last week which was extremely high but coupled with a narrow spread candle on both days suggests market maker buying and, as such, the pullback appears to have been triggered by the professional money before moving higher. However, this position should be protected with a relatively tight stop loss in case the price is taken in the short term.
Harley Davidson (HOG) – The stock closed on Friday at $36.99, duly breaking above our medium term target and continuing to exhibit a strong bullish trend with excellent support from both the 9 and 14 day moving averages. The next target is the price resistance between $37.05 through to $41.82 so expect some turbulence in this area. On the monthly chart we have now broken above the 200 month moving average which adds further support to the longer term trend higher for this stock so continue to hold and to move your stop loss up.
Metropcs Communications (PCS) : The stock closed on Friday at $13.06, following a week of sideways consolidation with the previous week having seen the stock jump to a high of $14.40 before pulling back and well in line with our target price. With the deep price support in place below this should provide the requisite platform for a further sustained move higher, although on the weekly chart we have a shooting star candle which suggests short term weakness so my suggestion here is to either close the position and take profits or to move the trailing stop loss somewhere around the $12.41 area in preparation for any pullback.
Citigroup (C) : Citigroup stock closed on Friday at $5.13 clawing its way past the psychological $5 region and breaching short term resistance at the same level as a result. The trend remains extremely positive with solid support from both the 9 and 14 day moving averages so continue to hold for the longer term.