Recovery Stocks
| date | symbol | company | sector | triggered | stop | target1 | target2 |
|---|---|---|---|---|---|---|---|
| 05/18 | GE | General Electric Company | Industrial Machinery - | 6.00 | 5.40 | 8.25 | 9.50 |
| 05/8 | DBO | Invesco DB Oil Fund | Crude Oil - | 5.75 | 5.10 | 7.15 | 8.25 |
| 04/6 | TGT | Target Corporation | Consumer Stores - | 96.00 | 90.50 | 113.00 | 130.00 |
| 03/27 | QCOM | QUALCOMM Inc. | Telecommunications - | 27.00 | 66.60 | 80.00 | 87.00 |
| 03/27 | KO | The Coca Cola Company | Consumer Beverages - | 42.80 | 38.80 | 50.50 | 55.00 |
| 03/27 | JNJ | Johnson & Johnson | Healthcare - | 123.15 | 113.80 | 140.00 | 146.00 |
| 03/26 | PFE | Pfizer Inc. | Drug Manufacturers - | 31.75 | 28.80 | 35.50 | 38.00 |
| 03/26 | SPY | S&P 500 ETF | Market Index Fund - | 261.20 | 227.50 | 299.00 | 313.00 |
| 03/26 | SVXY | Short VIX ETF | Volatility Index - | 31.35 | 27.25 | 46.00 | 54.00 |
| 03/26 | C | Citigroup Inc. | Financial Services - | 46.02 | 34.90 | 61.50 | 72.00 |
| 03/26 | GS | The Goldman Sachs Group, Inc. | Financial Services - | 169.75 | 141.50 | 198.00 | 222.50 |
| 03/25 | DIA | Dow Jones Average ETF | Market Index Fund - | 214.43 | 189.50 | 248.00 | 270.00 |
| 03/25 | IWM | Russell 2000 ETF | Market Index Fund - | 109.97 | 93.40 | 136.00 | 152.00 |
| 03/25 | BA | The Boeing Company | Aerospace Defense - | 158.73 | 93.25 | 232.00 | 285.00 |
| 03/25 | XOM | Exxon Mobil Corporation | Oil & Gas Energy - | 37.29 | 29.75 | 48.00 | 55.00 |
| 03/25 | MCD | McDonald's Corporation | Restaurants - | 162.98 | 134.00 | 180.00 | 198.50 |
| 03/25 | HD | The Home Depot, Inc. | Home Retail - | 181.76 | 145.50 | 202.00 | 223.00 |
| 03/25 | ADBE | Adobe Inc. | Technology - | 305.91 | 279.00 | 338.00 | 360.00 |
| 03/25 | AAPL | Apple Inc. | Technology - | 245.52 | 227.00 | 276.00 | 300.00 |
| 03/24 | QQQ | Nasdaq ETF | Market Index Fund - | 183.66 | 164.75 | 205.00 | 220.00 |
| 03/24 | SBUX | Starbucks Corporation | Restaurants - | 64.88 | 53.90 | 74.30 | 83.50 |
| 03/24 | HLT | Hilton Worldwide Holdings Inc. | Hotels Lodging - | 69.39 | 59.50 | 86.00 | 98.00 |
| 03/24 | MSFT | Microsoft Corporation | Technology - | 148.34 | 132.50 | 164.50 | 176.60 |
| 03/24 | FB | Facebook, Inc. | Internet Services - | 160.98 | 142.00 | 185.00 | 203.50 |
| 03/24 | DIS | The Walt Disney Company | Entertainment - | 98.12 | 80.95 | 117.00 | 131.00 |
| 03/24 | AMD | Advanced Micro Devices, Inc. | Technology - | 46.22 | 38.90 | 49.50 | 53.75 |
March, 2020 – Special Note To Swing Trading Service Members
As you know the market experienced an unprecedented sell-off in March. Many great stocks were decimated and sold off very heavily breaking their strong momentum up trends. To take advantage of a rebound, we introduced a new symbol list for stocks that have been beaten down but have a high probability of bouncing back strongly. The new “Recovery Watchlist” is now available under the Swing Trades menu and is a stand-alone 1-page addition to the service.
The Recovery Watchlist represents stocks and sectors that have been beaten down hard during the recent market selloff to extremely oversold levels. The unique symbols in the list are expected at some point to make a strong rebound and potential longer term recovery as the dust settles and the value buying in the market resumes. As previously strong stocks and sectors attempt to put in a bottom after such a large drop we typically see price retracement back into previous levels of overhead resistance. These are computed as Target 1 and Target 2. Some of the symbols on the list will only make it to retracement level 1. Some will make back to the target 2 level and some will eventually climb back into and resume their former strong uptrends.
How Use The Recovery Stocks Watchlist
The table is sorted by the date column on the left with most recent dates at the top. When a symbol triggers as a potential recovery buy it will show the current date in the date column and the row will be colored green. So you can always check the top of the list for any new recovery triggers. The Triggered column shows you what the closing price was the day symbol became eligible to buy. NOTE: The symbol is a BUY anywhere above the STOP PRICE. The two longer term recovery targets are posted to the right.
Recovery plays can take place in one of two ways. One is a forceful knee-jerk reaction back to the upside in a rapid move that never looks back hitting the retracement targets relatively quickly potentially in a matter of weeks. The second is a slower more volatile climb that grinds it’s way back up over time, sometimes faltering several times before finally achieving the retracement. This could take 3-5 months or longer. Some stocks may trigger as a recovery play but later hit the suggested stop levels. These stocks will RESET and remain on the Recovery Watchlist for a new trigger at some point in the future. A martingale approach can be used when playing the recovery candidates, i.e. start off with a small position at the first alert and if the recovery fails from that point and the suggested stop level gets hit take a larger position the next time the symbol triggers. Example: 1st position 100 shares. 2nd Position 200 shares. 3rd position 300 shares. You simply add the original starting number of shares from the first attempt into the position on each retry.
Diversification Is The Key
If you have sufficient capital you should consider taking a “buckshot” approach and diversifying your recovery plays with several vehicles in the list. (3-5 is ideal) In this way you reduce risk on any one holding as well as you widen the net to increase your odds of catching good recovery candidates from the list.
Introduction to the Recovery Watchlist Video