In the last 12 trading days some of our favorite, big hot trading stocks include: Google (299.67), First Solar (145.43), and Baidu (115.90), which corrected 15-20%. Sunpower (33.62) corrected 35%, and Research in Motion (51.11) moved up 20%. It’s real strong and we like it and had a BUY on it in the low $40 area. We bought some more Sunpower in our Aggressive portfolio and will buy Baidu on Tuesday on the open. We like all those stocks and expect them to be stocks that lead this market up. The DJIA is still in its consolidation formation, and looks like it made the final shoulder last week of its head and shoulder reversal pattern, and so we expect this market to rally strongly.
Our stock picks (Friday 1/16/09 closing prices) are: StatoilHydro (STO) 17.68; Activation Blizzard (ATVI) 9.57; Urban Outfitters (URBN) 16.14; GT Solar (SOLR) 4.46; Big Lots (BIG) 14.59; Cypress Biosciences (CYPB) 9.44; CryptoLogic (CRYP) 3.85; Human Genome Sciences* (HGSI) 2.42. They are mostly good companies with good charts that are at low historic prices … and either coming out of bottom bases or getting ready to. We really like Human Genome Sciences (2.42) and bought 10,000 shares of it in our Aggressive portfolio.
Our option picks are: BIDU (115.90) .BDQND FEB 110 PUT- a sell up to 9.00; BIDU (115.90) .BDQCE MAR 130 CALL – a buy up to 11.50. Our normal Buying Strategy is to buy 40% of your allocation for a particular stock NOW, and buy 30% more on each 20% decline from your original buy price – to ensure good entry prices.
* Cotton’s “Stock of the Week”
** We hold a position in the stock or option
Go to stockcharts.com to view the above stock picks