With the continued constructive price action in the indexes and some leading stocks breaking out and acting well on Friday; it is my firm belief that the markets will see higher prices next week:
With my confidence that we get a new uptrend even stronger on the weight of clear evidence; I decided to increase my long exposure to around 140%. So I'm now on margin. First I added to my existing position in $XRM which closed very well. About 60% of my account is invested in $XRM. I missed out on $RVLT; didn't want to buy the $4.00 break out like I had planned to as it occurred in the first 15 mins of the session. Breakouts this early are very risky and highly prone to failure. So I passed on it and the rest is history with the stock closing up 11%+!
In place of $RVLT, I decided to initiate positions in $SOHU and $QIHU. A little over 50% of my account is invested in $QIHU and about 25% invested in $SOHU. I will be looking to add to $SOHU if it gives me the chance to do so. Both of these stocks have brimming fundamentals and have managed to move sideways during the market's current correction. If the markets can break out next week; I believe these stocks will be the first to touch new highs. In fact, $QIHU will be hitting new all-time highs out of a high tight flag! (Check my previous blog post here if you want to see my thoughts on $SOHU)
In addition to the above mentioned stocks I also really like $ANGI. This stock has all the characteristics of a stock that can make an explosive move like $TSLA if we a get leg higher in the markets over the next few weeks. Firstly it's growing its sales quickly although it has not yet turned profitable. It has a low float and is highly shorted. There are some very strong skeptics betting heavily against the stock yet its consolidating just off all time highs. If this stock can hit profitability in its next quarter; we might very well see a parabolic ramp up!
Those are my thoughts and ideas. Hope they help!