Revisiting The Rubicon

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.

For all the drama of the big up and down moves of the past few days, the stock market pretty much ended the week where it started. The Dow Jones fell 0.54%, the S&P 500 dropped 0.65% and the NASDAQ tumbled 0.48%. Perhaps surprisingly, the MCSI Emerging Markets Index (EEM) ended the week 1.29% higher.

You were stopped out of Norwegian Cruise Line Holdings (NCLH) for a solid 10%+ gain.

Big gainers in your Bull Market Alert portfolio included the ProShares Ultra Nasdaq Biotechnology ETF (BIB), which jumped 4.35%; Palo Alto Networks, Inc. (PANW), which gained 3.62%; and last week’s pick, Halyard Health Inc. (HYH), which gained 3.98%. Two of these positions — Palo Alto Networks, Inc. (PANW) and Halyard Health Inc. (HYH) — hit new 52-week highs.

Adjust your buyback price for PowerShares DB Commodity Tracking ETF (DBC) to $19.15 to lock in at least a 15% gain in this short-sell position.

After scouring my databank of eligible Bull Market Alert recommendations, I came across a familiar name from the past few weeks, The Rubicon Project (RUBI).

Recall that The Rubicon Project (RUBI) is a global technology company that helps to automate the buying and selling of advertising. I originally set out the investment case for the company in the Dec. 15 edition of Bull Market Alert.  You quickly booked a 10.2% gain in the stock by Dec. 30.

Although this is something that I rarely do, this week I am recommending that you take another new position in the stock.

Here’s why. As you can see from the chart below, The Rubicon Project remains in a solid uptrend. It is also just bouncing back from a short pullback.

From a technical perspective, this is a picture perfect pullback. With my short-term favorite technical indicator, slow stochastics, turning upward, Rubicon definitely offers the strongest technical set-up for a position among my list of candidate stocks.

So buy The Rubicon Project (RUBI) at market today, and place your stop at $13.00. I am holding off on an option recommendation for now after Friday’s 3.01% jump in the stock.

Portfolio Update

PowerShares DB Commodity Tracking ETF (DBC) spiked downward 2.74% last week, making another excellent gain for your portfolio. There has been no shortage of coverage on the horrific beating oil has taken over recent months, and this is reflected in DBC. However, oil is not the only commodity pushing DBC lower. Iron ore has fallen from $120 per ton to nearly $66 per ton — roughly a 45% haircut. And, looking at gold, most of us remember the unprecedented rise of gold to $1,900 per ounce in September 2011. Gold is now at $1,230 per ounce — a 35% fall. DBC remains a SHORT SELL. Adjust your buyback price for PowerShares DB Commodity Tracking ETF (DBC) to $19.15 to lock in at least 15% gain in this short position.

ProShares Ultra Nasdaq Biotechnology ETF (BIB) jumped 4.35%. I highlighted the pricing scare that rippled throughout the biotech market a few weeks back, sending sector indexes down significantly on heavy volume. Fast-forward to today, and BIB is now standing just short of its recent high and 52-week high. BIB is a BUY.

Euronet Worldwide (EEFT) dipped 0.96% last week. EEFT has six analyst ratings listed with a “Buy” consensus. In addition, one analyst has an “Outperform” rating and one additional analyst lists a “Hold” rating. Technically, the stock is due for a bounce off of its recent lows. EEFT is a HOLD in the Bull Market Alert portfolio.

LifeLock, Inc. (LOCK) lost 7.17%. LOCK continued to suffer from its recent insider-selling report. LOCK now stands directly on its 200-day moving average (MA), a point at which it may likely find support and begin a recovery. President Obama will propose legislation this week covering cybersecurity and identity theft. This news-related bump could be just the catalyst to push LOCK upwards. The stock remains above its stop. LOCK is a HOLD.

Palo Alto Networks, Inc. (PANW) gained 3.62% and hit a new 52-week high. Although PANW has been moving in a positive direction on its own merits for quite sometime, President Obama’s announcements next week could also positively impact this stock as well. PANW is a BUY.

Halyard Health Inc. (HYH) gained 3.42% for its opening week in your portfolio, making a new 52-week high. This new bet on Ebola-related healthcare remains in its uptrend. Add the biotech resurgence I mention in my BIB commentary, and the bullish case for HYH strengthens even further. HYH is a BUY.

Latest Special Report

As a courtesy, I want to bring to your attention the newest version of The Top 12 Stocks for 2015, which features three of my top investment recommendations, as well as bonus picks from each of my fellow investment newsletter editors at Eagle. This report and others are available FREE on my website to you.

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Nicholas Vardy

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