Stocks to Watch March 2, 2014 – Welcome to the first edition of stocks to watch going into the Week of March 3rd.
IGT – International Game Technology – Looking at the chart below you can see that IGT is showing the signs of seller exhaustion and has been working on forming a bottom after a massive sell off related to what appears to be its Q1 earnings release. The stock is making higher lows and higher highs and most recently broke above major resistance at the $15 dollar level. IGT has shown strong relative strength as a result and did not sell off intraday with the general market on Friday.
CROX – Crocs, Inc. – CROX right here at its closing price on Friday represents a great entry as CROX has been building an asymmetrical triangle around the 15 dollar level. CROX showed excellent relative strength in comparison to the market on Friday and retailers have shown signs of bottoming. I am already owner of March calls and I think a move to $17 in the next few weeks is very doable.
GME – Gamestop Corp. – Another retailer, GME showed excellent relative strength on friday. In February, GME has shown an inability to go down and has shown signs of seller exhaustion. On 2/25 GME make an enourmous move. Since then it has been bear flagging off of that move. I expect it to break out of the flag for a continuation move over $40. As you can see from the chart, there is a volume pocket from $40-$44 combined with a short internet north of 30%, which makes this a very attractive trade.
CREE – Cree, Inc. – Cree has been consolidating in the following range since August. Over the last 7 months, that range has been tightening. I would be a buyer as close to support at 57-58. Or I would play the break out over 66. As the range tightens, the likelihood of a move away from its range increases.
HLT – Hilton Worldwide – I am watching Hilton closely simply because its a fairly new IPO issue that is creeping up towards its IPO high. New IPOs show huge potential of running higher then they get above their IPO high. Keep it on watch.
ARNA – Arena Pharmaceuticals – Arena Pharmaceuticals sold off after reporting its Q1 earnings last Friday. I am anticipating that the chart puts a higher low. In the chart below, the best entry would be in the green box which would represent an entry as close to support as possible. Additionally, there is a short internet of 27.28%. An entry near 6 would be most desirable. An upside target of 9.0 long term is realistic if it breaks out of this symmetrical triangle to the upside.
INVN – Invensense – INVN has been building this ascending triangle since October – November. I am looking for an entry at around $19.0-$19.50 or on a break above $21.90. Additionally, the short internet is pretty high (32%+). When INVN decides to resolve this range and if it is to the upside, I expect it go run pretty far higher. If you do take a long call position in this one, I would suggest possibly looking out to April expiration.
KMX – Carmax Inc. – Car Max has shown relatively good strength through the month of February. There was a strong sell off after earnings in December. I like the rounded bottom it formed and its entering a thin volume zone above. I like buying this on any modest weakness as I expect it to continue to run towards the lower $50s. Volatility is low so I expect the options to be pretty cheap.
ONVO – Organovo Holdings – 3D printing has finally looked to have bottomed. ONVO looks ready to make a breakout of this long forming descending triangle. A clean break of this descending triangle higher would lead to a target of new highs ($13.50).
OXBT – Oxygen Biotherapeutics – OXBT is coiling to make a big move higher. I feel like this would be a good entry to go long. A significant break above $7 would probably lead to a price target of $10.
PAY – Verifone Systems, Inc. – PAY broke out of the bull flag in early February and has been quietly inching up to new highs. I would be a buyer of any weakness that does not take out the previous days low. Price target is to new highs.
SPWR – Sunpower Corporation – SPWR has been consolidating in a range between $30-34 since October. A break out above $34 would lead to a price target of $38-42. However, I would love to get an entry around $30. Solar is an exciting industry and there is a very thin volume pocket above. Additionally, SPWR has a 30%+ short interest. This is one you want to be in when it breaks out above $34.