A solid end to the week for US equities, which saw the DOW 30 close at 12,391.25, having opened the session at 12,318.67, with investor appetite for risk showing no sign of abating just yet. The wide spread up candle of Friday was well supported with above average volume at 230M, so no signs just yet that the market makers are about to reverse the current bullish trend, which has continued almost unabated since the start of the year in a series of steady, if unspectacular daily moves higher.
In the UK, bullish momentum is slightly more muted, as we continue to flirt with the 6,100 price area, which is starting to develop into a potential area of resistance, and as always, the longer that this continues then the more likely that we will see a short term pullback. Despite this however, my short to medium term view remains bullish, and provided we see a sustained break and hold above this level, then this will provide the requisite platform of support in due course, which should then see UK equities climb further. Indeed the technical picture remains extremely strong, for both markets, with the indices holding well above all four moving averages. This risk on appetite is also reflected in the euro, which continues to hold above key technical levels, closing firmly higher against the US dollar on Friday, and with the current relationship continuing to provide a strong signal, we should see equities climb higher again new week.
As it has been some time since we last checked on our portfolio, I thought it was time to update you with progress on our stocks, so here they are, as of Friday night:
El Paso (EP) : As I said last time, the stock looks bullish, so continue to hold” – we have been well rewarded with the stock now trading at $17.67 so an excellent performance in the last few weeks. The only worry I have is that on Thursday we saw a gapped up shooting star candle, which suggests short term weakness so we may see a pull back in due course. However, I have moved my stop loss up to the $16.25 region to lock in profits should this be more than a temporary reverse.
Ameren Corp ( AEE ) : Still a little waterlogged closing at $28.89, but above our buy price so we are in profit by around $1 per share. Friday’s close ended above the 100 day moving average – a key level – so I am inclined to continue to hold this one for the time being.
Helmerich & Payne (HP) : Stellar profits on this one! – now breaking above the $60 level and closing on Friday at $62.15. I keep moving my stop loss up on this one to lock in more and more profit and will no doubt get stopped out in the future, but for the time being I am happy to let the market tell me when to close. Remember we bought this one at just above $42, so an excellent ride higher!
General Electric (GE) : GE continues to perform extremely well rising to close on Friday at $21.44 with excellent support from the 9 day ma. The stock looks set to continue higher so hold & move up stop loss position to lock in profits.
Alcoa (AA): Yet another strong performer for us with the stock closing on Friday at $17.28, so once again we need to move up our stop loss and lock in our profits as we continue to hold this one for the longer term. I am looking for this one to take off soon!
Harley Davidson (HOG) – Wow – the stock closed on Friday at $42.12. I have to say this one has exceeded my expectations as we bought back in the summer of last year at $29.42, and it has continued steadily higher ever since developing a strong trend of support as a result. There are no signs that the move is running out of steam just yet so once again move your stop loss higher and continue to hold and lock in profits.
Metropcs Communications (PCS) : Not a star performer, but still well in profit having recommended this one at $10.93, and closing on Friday at $13.41, so a good solid performance from the stock which continues to hold above the 100 day MA.
Citigroup (C) : This was a buy at $4.05, closing on Friday at $4.91 so some steady gains here since the summer of last year, although not as spectacular as some of the others ( I’m getting spoilt!) Good solid buy and a longer term hold for the future. Lock in some profit now and move up as the markets move higher over the next few weeks.
Citigroup stock closed on Friday at $5.13 clawing its way past the psychological $5 region and breaching short term resistance at the same level as a result. The trend remains extremely positive with s
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