I like these 6 stocks no matter what the market does
I am on the prowl for
opportunities. I like
(
ISIL |
Quote |
Chart |
News |
PowerRating). That stock is in fine shape. I
bought more on the close. Scalped it. Ordinarily I am not a scalper. I did scalp
this one adding to the position I carry. I am in it for the long term. I would
rather not trade it but should it eventually get extended showing me a solid
gain then certainly I will book it. I will certainly book a big gain should the
stock work out. I bought more shares on the close scalping it at 20.71. The
stock ramped to close at 20.75 near the new high made. I booked the gain in
(
MDR |
Quote |
Chart |
News |
PowerRating)
and left a small toe in the water so I could watch it. MDR ramped today. Hit pay
dirt. Had a green day today. In spite of weak market action my action within the
framework of the positions I carry closed the day green. I like that. I like the
action displayed by the stocks I am involved in. The overall action was good. It
was helped greatly by the movement that occurred in MDR today. That greatly
enhanced performance. I am still down for the month and made halfback in the
last two days. I want to get into a few stocks I am stalking right now. Both
long and short and believe me being exposed in just one direction in this
current tape is not intelligent. I may go exclusively long later in the fall.
Now it pays to be relatively neutral. I am still net long right now. Lets get
into the ones I have yet to play.
Leapfrog Enterprises
(
LF |
Quote |
Chart |
News |
PowerRating) 13.60
This stock is extended. Any stock that trades
above its 200 day moving average is technically healthy from a long-term
perspective. The stock has completed a brutal decline and is climbing above the
top of its base. It provides lower risk buying it coming in to the 12.50 zone.
That is a good price to pay for LF. If the stock closes above 13.75 on a close
then get involved. I intend to get involved closing above 13.75 or coming into
to the 12.50 zone. LF is in a brand new advance. The advance comes on the heals
of a decent base that followed a brutal decline. The timing is right for this
one. Sticking a small toe in forces you to watch it. Place the stop under the
200-day line at 11.89.
Emulex Corporation
(
ELX |
Quote |
Chart |
News |
PowerRating) 21.38
I intend to buy this stock. I will stick a toe in
the water and pick up a few shares. The position ought to fatten coming into the
20 zone. That is an ideal price to pay. This stock had a brutal decline last
year and recovered nicely to form a strong base. It currently trades above the
top of its base and the move toward an advance is new. It is in a new advance
and the advance got legs a few days ago when the stock rose above 21. The price
of ELX moved higher today in spite of overall negative action. That is
encouraging. A better move in the semiconductor space tomorrow lifts the price
higher still. Take a peak at the chart and see the headroom it has. As long as
ELX trades above its 200-day moving average it is a long-term hold and right now
a buy given the positive action reflected in ELX. The pattern of trade is
shaping nicely. The advance persists. It shows higher price points after market.
That is what it shows right now. It will open strong in the morning. Stick a toe
in. The 200-day line trades at 17.47. Here is a healthy stock that has broken to
new near term high price points. Good idea right now and long-term investors
ought to use the 200-day line to stop the loss. Buy the bulk of it coming into
20.
Performance Food Group Company
(
PFGC |
Quote |
Chart |
News |
PowerRating)
30.95
I am not involved in this or the previous two stocks mentioned. I intend to get
involved should PFGC cross 31.02. That is the level to begin building the
position. The stock is in great shape and is building decent momentum. After
losing half its value last year it is currently advancing out of a decent base.
The stock is in good shape. It performs better then most within its group. Food.
Place the protective stop at 27.49 for long-term investors.
CBRL Group Inc
(
CBRL |
Quote |
Chart |
News |
PowerRating) 37.44
I missed this one on Tuesday and will catch it today. I will sell this stock short. Go slow initially and get more serious
should it rally up to the 40 to 41 zone. Keeping a short position in a stock
that is clearly at the outset of a decline is a method to profit in the stock
market. CBRL is in decline. Take a look at the chart and see for yourself. This
is a good time to be long and short because the tape is split. In a split
sideways market there are still stocks that rise and fall. CBRL is on the dark
side and wrapped in a bear hug. Tough. If you are bearish about stocks and are
seeking a positive experience selling short then seek no longer as CBRL is a
decent find. Place stops at the 200-day line 41.02. Short the bulk of it in the
40 to 41 zone. The stock may be oversold. Big selling over the last couple of
days and it could have climaxed so short it up.
Advanced Medical Optics
(
EYE |
Quote |
Chart |
News |
PowerRating) 39.81
Keep eyes peeled on EYE. I am. I will sell this
stock short in the vicinity of 38.99 or less. It is exciting to see the major
top almost complete and the stage set for a break down. It breaks down under 39.
The precise spot to sell this stock short. Patiently wait for that magic moment
to occur. Don’t miss it. That would pressure the stock causing it to test
support at 35 and change. That is the bottom and that could break. The top
formed is major. It comes on the heals of a powerful advance. Now it is on the
verge of decline. How severe the decline? The market dictates the terms. The
market is saying that this stock is about to fail. So play it short under 39.
Place the stop at 40.35
Bear Stearns
(
BSC |
Quote |
Chart |
News |
PowerRating) 99.32
Wow this is another exciting possibility to make
money selling short. It is gorgeous under 98.5. Check the chart and see what I
see. Gaze at a chart and see the formation of a formidable top. If it caves
under 98.5 then the odds favor a decline to test decent support in the 93 zone
at which point it goes through oversold adjustments and the preparation for
another leg down. That is the current reality facing the daily life of the
shares of BSC. It is in the beginning of what could be a serious decline. Place
stops at 101.02.
I will be in NYC this week for the remainder of
the week and back at my desk to write the monthly market letter on Saturday.
Every time I take the train up to NYC the market rises so here I go again. If
that is what it takes to manufacture a gain then I am all for it. The home of
the beloved team from the Bronx. Bet ya can’t guess who that might be. So this
will be the last post till next week. Have a lovely end to a hot steamy all too
short summer season.
Jack S. Rothstein
Rothstein Investment Advisory Services, Inc.
3600 Chain Bridge Road, Suite 200
Fairfax VA 22030
Phone 888-343-4825 — Fax 703-385-7232
www.jrmoney.com —
www.wealthcast.com
Jack Rothstein is the President of Rothstein Investment
Advisory Services, Inc. and is a 20-year veteran stock trader and a money
manager.
Mr. Rothstein also writes Wealthcast, a monthly newsletter about the technical
behavior of the markets. He has been quoted on Bloomberg, CNNFn, the Dick Davis
Digest and the Dow Jones Newswire. Since 1993, Mr. Rothstein also hosted
WealthCast, a radio show in the Washington DC area covering the stock market.