Sunday, June 26, 2011

Six Stocks To Watch This Week

This list originally started out with ten stocks on it, but I decided to pare it down to six and include only the stocks that are actually trading at a distance less than their ATR (Average True Range) from their stops. 

For example, Apple will start the week trading at $326.35, which is just $13.55 above my new stop at $312.80. With an ATR last week of $15.73 it's entirely possible that it could trade below its stop. I'm not saying it will, and honestly I hope it doesn't, but it could happen.

Crocs, on the other hand, is trading at $24.81 with a stop for the coming week at $19.05. That's a difference of just $5.76, but with an ATR of only $1.92 it seems very unlikely that it will trigger that stop and reverse to short this week.

Just for the record, Shutterfly, Deckers Outdoor, and Citrix Systems are the other three stocks that I took off this list.

Apple (AAPL): 
- LONG the week of 3.30.09 at $115.99. My initial stop was $84.39, so the risk (R) on the trade was $31.60. Closed last week at $326.35 with a $316.26 stop. The new stop for the upcoming week is $312.80. The percentage gain on this trade is 181.4%, and the reward-to-risk ratio is $210.36/$31.60 = 6.66.

Boeing (BA): 
- LONG the week of 5.4.09 at $43.65. Using $32.10 for my stop the risk was $11.55. Closed last week at $71.26 with a $70.39 stop. The new stop for this week is $69.70. The percentage gain on this trade is 63.3%, and the reward-to-risk ratio is $27.61/$11.55 = 2.39.

Potash Corporation (POT): 
- LONG the week of 8.2.10 at $37.80. With my stop at $29.08 the R was $8.72. Closed last week at $52.54 with a $49.15 stop. My stop for this week will be $49.74. The percentage gain on this trade is 39.0%, and the reward-to-risk ratio is $14.74/$8.72 = 1.69.

Acme Packet (APKT): 
- LONG the week of 3.9.09 at $5.39. I used $2.89 for my stop, so the R was just $2.50. Closed last week at $65.16 with a $59.41 stop. The new stop for this week is $59.36. The percentage gain on this trade is 1,108.9%, and the reward-to-risk ratio is $59.77/$2.50 = 23.92.

Diamond Offshore (DO): 
- LONG the week of 1.3.11 at $70.57. With a stop at $57.65 my risk on the trade was $12.92. Closed last week at $67.71 with a $66.64 stop. The stop for the coming week is $66.76. The percentage loss on this trade is -4.1%, and the reward-to-risk ratio is -$2.86/$12.92 = -0.22.

Joy Global (JOYG): 
- LONG the week of 5.4.09 at $29.80. With my stop at $17.74 the R was $12.06. Closed last week at $86.65 with an $82.77 stop. The stop for this week will be $82.50. The percentage gain on this trade is 190.8%, and the reward-to-risk ratio is $56.85/$12.06 = 4.71.

1 comment:

  1. What ATR period do you use? I notice you set your stop at 3 times ATR. Thanks

    ReplyDelete