I'm a firm believer in buy and hold, no matter what Cramer says. Nothing against swing or day trading. I just think a substantial portion of any portfolio should include core holdings. Trading around those core holdings makes sense.
Letting a powerful bull run works in a simple, pure way as opposed to trying to catch it and ride it for short gains — paying a higher tax and multitude of commissions along the way. With that in mind, here's quick look at my A- stock picks and where momentum stands in each.
Amazon (AMZN) $75.10
After trading sideways since a June 14 mid-day high of $72.87, volume kicked up on Monday. Today was a third day in a row of increasing volume (12.5 million shares) and AMZN traded at an all-time high of $75.35 at mid-day. Rising volume and the breakout make this a tempting buy for Amazonians.
Apple Inc. (AAPL) $137.73
To the dismay of Apple bears and competitors, the gravy train is still chugging ahead. At near-warp speed, mind you. AAPL broke out to a new high (ho hum) today on 32 million shares, up from yesterday's 25 mil. Though this is one of only eight A- stocks, it is also only one of four that is at a healthy entry point.
Baidu (BIDU) $212.84
Bear-buster Baidu has gained $77 in one month. With a float of just 19 million shares, the short squeeze has been painful for bears. The recent move up, since $181 on July 2, has been on robust volume. There have been only four down days since June 12, and today's breakout is an all-time high. Is it a buy here? Tough call for momo traders, since today's 5.2 million shares is right about average for the past 30 days. Always a major risk in terms of entry point. This stock hasn't known a floor since it was in the 90s!
Crox (CROX) $47.10
The happy run from $40 to $49 hit a skid yesterday, and the PPS dropped today on lower volume. As earnings day (Aug. 2) inches closer, plus options expiry, volatility will rule. Risk-loving longs will load up on this mini-dip.
Foster Wheeler (FWLT) $120.25
Recent run is nice, but the stock has finished lower in two of the last three days. Could be a buying opp for bulls.
Google (GOOG) $552.16
Seems like just a little while ago when Google was hovering at $460 and investors were growing weary, bored, frustrated with the lack of volatility. Well, blame your leaders. Google intends to never split. Google intends to have a stable stock. They love Warren Buffett in Googleland. Good for investors. Today's breakout (up nearly 7 bucks) on 5.2 million shares is nice for longs and long wannabees.
(Update, 2:35 p.m. CNBC just reported that the eBay-Google debacle of a few months ago could affect Google's earnings. Somehow, I just don't put much stock in that, and if it affects GOOG, bulls have a buying opp.)
Spartan Motors (SPAR) $17.16
The stock has struggled since its split and has given up much of its fluff. Underneath remains a strong moneymaker. The stock has traded sideways for three weeks. An interesting earnings report is around the corner.
Research in Motion (RIMM) $227.52
Nice breakout today (5.6%) on higher volume. This stock has just killed shorts, and who knows how high it flies now. Like Baidu, except with real money in its coffers. And, coincidentally, the Chinese market awaits the Crackberry. Looks like a buy here.
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