Breakout Fizzle

I don't know that I've seen so much pre-market enthusiasm end so so-so. At least we ended up for the day. DNS +37, +3.5, +0.29.

Trades:

I posted a few closing trades earlier.

I managed to let go of the FMCN shares near the top, but I held onto CVI too long. Instead of selling the called shares above $25 like I'd hoped, I got greedy and waited for the inevitable rebound as it drifted lower. I ended up losing that 1% pop plus another 5.8% by the close. Still waiting for my price ...

With CVI down 6% I bought some call options. Then I decided that I really wanted CPX ... or PTEN ... or RES ... or ROSE instead (my "oil patch" stocks below). Some of the calls sold (+1.9%) but I have a few more that didn't hit their limit price.

My strategy is to scale in with call options, so I bought some call options for CPX, PTEN, and ROSE when their limit orders filled. There's risk that the recession will further reduce demand, and that Libyan oil coming back on-line could depress crude oil prices. We'll know soon.

VRTS is moving again, and CF is running well.

Reversal alerts:

The hlr script yielded (5) stocks, APEI was the most interesting with decent numbers and earnings estimates revised upward recently.

The t2 script yielded (12) stocks. We've got VRTS which has accelerating sales growth (now at 40%) over the last three quarters, and triple-digit earnings growth and a forward P/E of 18.4. I have no doubt that former investors (like me) will move back into VRTS.

There there's XXIA which is kind of a mixed bag but with rising sales and earnings, forward P/E of 19.6. The reversal indicators look okay, but the stock has been on a consistent decline.