In the last few weeks equity markets have consolidated and even pulled back a little following the sharp gains of September and October, as concerns over sovereign debt in Europe, coupled with a resurgence in the US dollar has seen investor confidence wain as money flows reverted to safer havens. However, in the last few days, with the ECB hinting at unlimited support for European bonds, risk on appetite has returned once more, with the Dow and the FTSE making strong gains last week. So let’s take a look at our portfolio of stocks that we selected in September and see how we are doing in the current market.
El Paso (EP) - BUY at 13.11 – El Paso closed on Friday at $13.86, and continues to hold above all four moving averages. The trend for the stock still remains firmly bullish and with all four moving averages continuing to point higher, then this is a good long term hold.
Ameren Corp (AEE) - BUY at 29.18 - still waiting to break above the $30 price level, having closed on Friday at $29.23. However, we are still holding above all four moving averages and the stock therefore remains a hold for the time being.
Helmerich & Payne (HP) - BUY at $42.00 - closed on Friday at $48.29 and is one of our star performers having cleared our initial target of $46.60 and now looks set to breach the $50 price level in due course. Both the 9 and 14 day moving averages are providing strong support so continue to hold this stock for the longer term and move up your stop loss accordingly.
General Electric ( GE ) - BUY at 16.69 – GE closed on Friday at $16.78 – not a great performance but with the stock now breaking back above all four moving averages once again, this is one to hold for the longer term. Never going to set the world on fire, but a blue chip stock that is relatively undervalued at the moment, and as we move out of recession into early expansion this is one to hold for the long term.
Alcoa (AA) - BUY at 11.75 – strong performance again last week with the stock closing on Friday at $14.23, so another of our star performers. My target remains 14.60 for the stock as we continue to trade above all four moving averages and the longer term outlook for the stock remains very positive so continue to hold.
MEMC Electronic (WFR) - BUY at 12.34 – the stock has pulled back in the last few weeks and closed on Friday at $11.89, and despite the slightly bearish picture at present the longer term outlook remains bullish. My suggestion is to review this one weekly and if the stock continues to move lower then this could be a sell in due course.
Harley Davidson (HOG) - BUY at 29.42 – another of our star performers having closed on Friday at $33.25. The technical picture remains firmly bullish for the stock, and my target for this one is around the $36 region at which point we should consider closing out and taking our profits, but for the time being continue to hold.
Metropcs Communications (PCS) - BUY at 10.93 – continues to perform well, closing on Friday at $12.36 continuing to hold above all four moving averages. My target remains 13.50 for the stock.
Citigroup (C) - BUY at 4.05 – continues to look bullish as we hold above the 14 day moving average, closing on Friday at $4.45. My target remains 5.10 for this stock and despite the sideways consolidation I am waiting for a breakout in due course, which should see this one gather momentum and break above the $5 price area in due course.
