Despite the 3.5% sell-off in the NASDAQ over the last six trading days, The S&P and DOW remain fairly resilient as they hover near recent all-time highs. The RUSSELL 2000 attempted a breakout of its nearly seven month trading range but fell back into that base late in the week. However, it has flash some signs of outperformance over the last two weeks.
This leaves us with a prudent, yet still bullish perspective for now. We may be seeing a sector rotation within a bull market or the beginning of a corrective period. Until things become more clear we will trade with a slightly more conservative approach. Things can change quickly so we must stay vigilant and flexible. We currently hold three position all on the LONG side. Here is the detailed look at our positions.
HIIQ- This is our newest trade. We took a LONG position on 6/14 at $21.97 and are quickly up 13.09% and nearing our swing trade target of $25.50 on the first have of our shares. We will move our stop up on our full position to near $22.00. Should the stock open higher Monday morning be ready to take swing trade profits and do not split hairs over a few nickels.
MDXG- We opened a LONG position here on 6/2 at $14.59 and we are currently up 3.11%. In lieu of the afore mentioned market conditions, we will maintain a fairly tight stop near $13.60. The stock behaved fairly well the last two weeks relative to the volatility in the NASDAQ, hopefully we can get an upside burst in the coming week and nail down our swing trade profits, that upside target currently stands near $16.25.
GOOS- Well the GOOS seems to have gotten loose. We opened our LONG position on 5/18 at $17.45. This was an IPO breakout set up that we used some discretion on to enter a bit early and in this instance it has worked on nicely so far. We locked down swing trade profits on 6/1 which was the day before their first earnings report as a publicly traded company. We normally would have a higher swing trade target off this set up but under most circumstances we don’t like to hold full positions into earnings reports, especially if we can cash in on a decent swing trade profit on the first half of our shares. In this case, we netted 9.17% on our swing and we still hold half our shares at a 17.83% profit. Our stop is set near $20 which is in the neighborhood of the earnings gap up. We will use much discretion if and when price approaches this level.
That’s all for now. Stay tuned for updates and Talking about Trusting The Process, Happy Fathers day to all the Dads out there!