I've Added Two Names to My Stock Shopping List
Here are the stocks I'm watching and hunting right now, as we see a suspicious bounce on Monday.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
A bounce on Monday morning following a very ugly week is hard to trust, but it may help some support develop on the charts. In bad markets, the typical pattern is strong opens and weak closes, so that is what we have to watch for.
If you are an aggressive trader, it is important to remember that the biggest bounces come in the worst markets. The best days almost always occur right after the worst days, and we had some of the worst actions of the year last week. Don’t start predicting that we have hit a low, but play the volatility if you are so inclined.
I posted 20 stocks on my shopping list last week. I have not been in any big rush to buy them, but there are several that are at support levels or down substantially enough that I want to start to add. My style is to buy very incrementally. I have plenty of room to add more, and I don’t want to be really aggressive until I think we have better market conditions.
ADMA Biologics ADMA and Palantir PLTR from my list are hitting new highs this morning. Both are names I want to ramp up and may add to later today. The AdvisorShares Pure U.S. Cannabis exchange-traded fund MSOS is filling the gap on the chart, and that is one I want to add to the next pullback toward $6.50.
Several biotechnology names remain my favorites. I added to Sensus Healthcare SRTS, which is a very thinly traded name, but it has exceptionally strong fundamentals and a great balance sheet. I’m very optimistic about a strong third quarter, but it trades so little volume that it can move randomly.
Humacyte HUMA, HUMAW has been struggling while waiting for the Food and Drug Administration to approve its artificial vein product. The company remains confident that approval is coming and is at a medical conference this week with trauma surgeons. I expect FDA news fairly soon, which will remove the gloomy overhang.
Xeris XERS has had a change in character lately and was performing quite well before dipping on Friday. I attribute that solely to market conditions and took the opportunity to add.
I also like the action in TG Therapeutics TGTX, which bounced off its 50-day simple moving average on Friday.
Two new names on my shopping list this morning are Summit Therapeutics SMMT and Rezolute RZLT, both of which have significant news. I’m starting positions and will look for entries.
I don’t trust this market and will continue to hold high levels of cash, but there are opportunities developing that I want to nibble on.
At the time of publication, DePorre was long HUMA, HUMAW, XERS, TGTX, SRTS, ADMA, PLTR, MSOS, SMMT, RZLT.
