Stock Selection Information
- The broad selloff isn't touching H-P ([[HPQ]] +14.2%) following last night's earnings. Jefferies' Peter Misek weighs in with an upgrade from Sell to Hold. He praises H-P for having the discipline to sacrifice PC market share to retain profitability (unlike [[DELL]]; Whitman (transcript): "Maybe that's what you do when you're about to go private.") Misek also likes the cash flow guidance of $7.5B - "(it) materially changed our view of H-P margin, cash flow, and EPS prospects."
- Stocks Hitting 52-Week Highs
- UPDATE: J.P. Morgan Reiterates Neutral Rating, Raises PT on Hewlett-Packard Company on Expected Upward Trends
- Benzinga's Top Pre-Market Gainers
Watch List Reason - Earnings released yesterday after the close
Pre-Market Volume - 15.5%
Trading Plan - Go long at support: 23.75 or 23.50 || Go long above resistance at 21.25
Management
Entry Setup used: Momentum plays on both trades
Trading Comments
After a strong down move yesterday on the SPY, a bounce up was a possible scenario. HPQ had it´s earning released yesterday with a strong up reaction to it.
Today, at pre-market, it was trading in yesterday´s after-hours range. The possible supports were 23.75 or 23.50. When it open around 23.00, the bids were being hit, but price was not drop. Tape reading skill paying off this time again. Got it at 23.02 (after 2 stops) and the position develop. Momentum play to the upside. It slowed down around 23.30s and when it dropped I got out at 23.28.
It start to consolidate, and when it broke the consolidation up, another momentum play: got in at 23.49. This positions was held to 23.75.
Today, at pre-market, it was trading in yesterday´s after-hours range. The possible supports were 23.75 or 23.50. When it open around 23.00, the bids were being hit, but price was not drop. Tape reading skill paying off this time again. Got it at 23.02 (after 2 stops) and the position develop. Momentum play to the upside. It slowed down around 23.30s and when it dropped I got out at 23.28.
It start to consolidate, and when it broke the consolidation up, another momentum play: got in at 23.49. This positions was held to 23.75.
Evaluation
The first 2 stops were very small losses, but this is part of the game. When the positions start to work I made my money back. It was one of my goals for today to get back in stock after a winning trade. HPQ provide me an opportunity, that I took, but still can improve on this skill. After 10:00 there was a break I could´ve built my position, since it was trending up.
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