Categories: Bull Market Alert HotlinesStock Market News

Unveiling a New Energy Play and Three More Double-Digit-Percentage Gainers

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

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world. He was the Editor of The Global Guru, a free weekly e-newsletter, and also edited the trading services Momentum Trader Alert, which focused on making short-term profits in the hottest markets in the world, and The Alpha Algorithm, which was designed specifically to deliver big, fast triple-digit winners, month after month. He was also the editor of Smart Money Masters, a monthly service focused on longer term investments recommended by the brightest minds in the business. Mr. Vardy has been a regular commentator on CNN International and the Fox Business Network. He has also published articles in The New Republic, The World and I, and The Baker & McKenzie Legal Review. The Global Guru/Nicholas Vardy has been cited in The Wall Street Journal, Newsweek, Fox Business News, CBS MarketWatch, Yahoo! Finance, and MSN Money Central. Mr. Vardy graduated from Stanford with a B.A. — with honors and distinction — in both Economics and History, and he also earned an M.A in Modern European Intellectual History. After winning a Fulbright Scholarship, he earned a J.D. degree at Harvard Law School where he was an editor of the Harvard International Law Journal. When not uncovering investment opportunities for his subscribers and investors, Mr. Vardy is a keep-fit enthusiast and an avid student of classical music.