MO – Altria Group:
This ticker has been on a huge downtrend since June 2016 where it topped out at
77.79 and dropped to recent lows of 46.49 on December 26 2018. It may
be a bit early to bet the farm on this one but I think there is at least a better
than even chance that we have seen the bottom.
On the plus side, the chart is showing a double bottom. On
the downside, price is below all moving averages which makes calling this the
bottom a bit risky to say the least.
A conservative approach would be to go long if it breaks
50.32 with a stop a few ticks below the all-time lows (46.45). I’d start with
half my normal risk since the loss is so far below the entry. Then I’d add to
the position if it hold higher lows going forward.
A bolder strategy but with less downside potential would be
to buy near the current price or preferably lower if possible (but not below
46.49) with the same stop loss of 46.45 which is only about $2 at most. Then I’d
likely sell half near 50.00 and buy back in if it breaks 50.32 with conviction
and uses 50+ as a base and not as a resistance.
INSG – Inseego: Pioneers
in the 5G field with big connections and contracts. This ticker has already tripled
in the past 6 months to $6 but I think it has way more upside coming. The stock
is currently (1/21/19) pulling back thru the 8 day and nearing the 20 day
moving averages. I think this is the best entry we will see for the foreseeable
future. I don’t expect it will get back under $5 but I will still be happy to
buy more if it does. My strategy is to buy on dips and keep a core position
until it stops putting in new higher highs.
HAL – Halliburton:
We just missed the best entry in my opinion but I think the stock gets back to
$50 this year and beyond going forward. Since I missed the 31ish breakout, I
will be looking to buy pull backs to the 8 or 20 day MA. Best case, a retest of
31ish would be a great buy.
X – US Steel: X
is perhaps a bit of a riskier play with tariffs and trade issues with China but
I’m thinking we are going up from here. It has been as low as 6.15 in the past
few years so it could definitely go against me but as long as you stick with either
tight stops or play with funds you can sit on for 6 months to a year, I feel
confident in the future outlook. I started buying at 20.05 and will add on constructive
pull backs of higher lows. The thing to know about X is that it can make really
powerful and often erratic moves for a lower priced stock which makes it
dangerous to say the least. I do believe however it’s worth the risk if you can
handle the bumpy ride. I think we are heading to 25ish in the near term and
even higher once it has had a chance to base around 25 for a bit.
CC – Chemours:
This has been a powerful stock with a major pull back and I like it going
forward from here. I could see it making it to 48 ish over the next few months.
We just missed the best entry at 34.38 but I will be looking for anything in
the 34.50 to 35 range on 1/22/19 if possible and any test of the 8 day if that
doesn’t happen.
