With the debt talks taking a turn for the worse last Friday, I have decided not to publicize any trades of the week tonight. I have little doubt that the debt ceiling will be raised, but the markets may have more concerns than I do. That means we could see some highly volatile swings and possibly more to the downside.
I don’t make predictions as such. I do take in the evidence in front of me and react fast when movement happens. I still like my publicized trades in Akorn (AKRX) and PDL BioPharma (PDLI). The charts are still favorable for more upside, but if the markets take widespread selling pressure, it might be tough for these trades to work higher. PDLI, last week’s trade of the week, reports earnings after the market closes on Wednesday, so I will closing out my trade before or I will be riding a very small position into it.
If we can get past this headline risk, we should see some good opportunities due to earnings season, but this headline risk warrants extra caution to the upside. As stated on Friday afternoon, I took some profits in most of my trades. This allows the ability to add back this week or at least be profitable any stops are triggered. Be extra cautious with the headline risk this week, great profits can be made very quickly, but large losses can rack up just as fast. I will likely be looking for more day trades this week than swing trades.
Here is a short watch-list of mine for stocks to the long-side. If the action warrants it, I will look closely at these stocks for entry points.
Radar
Celestica Inc. (CLS)
Parkervision Inc. (PRKR)
Hansen Medical, Inc. (HNSN)
Pioneer Drilling Co. (PDC)
Taiwan Semiconductor Manufacturing Co. Ltd. (TSM)
Quepasa Corp. (QPSA)
Digi International Inc. (DGII)
CVD Equipment Corp. (CVV)
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As always, do your own homework to see if you agree. Good luck out there.
Mike
At the time of publication, Kudrna was long AKRX and PDLI, but positions may change at any time.
