U.S. markets closed another strong week, with the Dow Jones up 3.10%, the S&P 500 jumping 3.10% and the NASDAQ rising 3.28%. The MSCI Emerging Markets Index recovered 2.99%.
All of your Bull Market Alert positions rose by between 1.21% and 10.21%. All of your holdings are a “Buy,” except for the MSCI Emerging Markets Index (EEM).
With so many of your positions roaring ahead, let’s lock in some more double-digit percentage gains in your portfolio.
1) Raise your stop in Allete Inc. (ALE) to $65.11 to lock in at least a 10% gain in the stock.
2) Raise your stop price in Masimo Corporation (MASI) to $63.70 to lock in at least a 10% gain in the stock.
3) Raise your stop price in Take-Two Interactive Software (TTWO) to $49.22 to lock in at least a 10% gain in the stock.
This week’s Bull Market Alert recommendation, PDC Energy, Inc. (PDCE) is another small-cap momentum play — this time in the red hot energy sector.
Founded in 1969 and headquartered in Denver, Colorado, PDC Energy, Inc., is an independent oil and natural gas exploration and production company. As of December 31, 2015, it had approximately 273 million barrels of crude oil equivalent of proved reserves.
Here is why I expect the stock to continue its recent strong run.
First, PDC Energy just completed a $1.5 billion acquisition of 57,000 acres in the Delaware Basin of Texas. Done through the acquisition of two private companies, this is expected to bring the Denver-based company “decades of future drilling locations.” It also means that the prospects for the company have expanded drastically.
Second, from a technical standpoint, PDC Energy has the wind at its back, and the stock is in a strong uptrend. As the chart below confirms, PDC Energy, Inc. (PDCE) has broken out sharply to the upside in the past month.
PDC Energy, Inc. (PDCE) vs. the S&P 500 over the past three months.
No wonder PDC Energy Inc. is one of the most popular stocks among top hedge funds, with no fewer than 22 holding a stake in the stock. In addition, eight retail small-cap strategies I track also invest in PDC Energy. A lot of smart money is bullish on this stock.
So buy PDC Energy, Inc. (PDCE) at market today and place your stop at $64.00.
With the stock overbought after last week’s strong rally, I am holding off on making an option recommendation this week.
Portfolio Update
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Sincerely,
Nicholas A. Vardy
