It was a strong week for the financial markets, with the Dow Jones up 1.07% and the S&P 500 jumping 2.42%. Higher-risk markets soared even more, with the NASDAQ up 3.23%. Global markets went along for the ride with MCSI Emerging Markets Index up 1.13%.
The big story in your Bull Market Alert portfolio was your three sets of triple-digit percentage option gains.
In Friday’s Special Alert, you booked a triple-digit percentage gains of 247.55% in your Google Inc. (GOOG) Dec 2013 $900.00 call options. In addition, your Krispy Kreme Doughnuts (KKD) Feb 2014 $20.00 calls and Melco Crown Entertainment Limited (MPEL) Jan 2014 $35.00 calls are also up 100%. Sell half of your options in each of these positions to lock in two additional triple-digit percentage gains.
Your Bull Market Alert stocks also had a remarkably strong week, with Google Inc. (GOOG) soaring 15.98% after reporting blow-out earnings. Close behind was Bank of Ireland (IRE), which also added 14.06%. This position is now up 123.28% since the start of the year.
There were plenty of other big single-digit percentage gainers as well. Melco Crown Entertainment Limited (MPEL) added 7.56%. MercadoLibre (MELI) rose 7.40%. Biotech bet Celgene Corporation (CELG) gained 4.82%. Last week’s recommendation, the iShares MSCI Spain Capped Index (EWP), rose 4.81%. Gentherm (THRM) also added 4.39%.
As result, I am recommending that you raise your stops in many of your Bull Market Alert positions. You’ll find the details in the “Portfolio Update” section below.
I’ll be back next week with a new Bull Market Alert recommendation.
Portfolio Update
Bank of Ireland (IRE) added 14.06% last week. With U.S. indexes making new highs while trading at the top of their ranges, and appearing to be a bit overbought, strong overseas powerhouses like Bank of Ireland are still early in the recovery of their stock price. Given this, gains are more likely and pullbacks are opportunities to add to your position. Expect volatile weekly moves like this one to continue. IRE is a BUY.
WellPoint, Inc. (WLP) dipped 2.55%. Much to Washington’s dismay, reports are starting to trickle in highlighting the dismal uptake through Obamacare’s www.healthcare.gov Website. Whether this is due to a system failure, or simply the American public not wanting to purchase coverage, is a major point of contention that will play out over the weeks to come. Last week though, poor preliminary sign-up metrics weighed down WellPoint’s stock price. WLP will report earnings on Oct. 23, before markets open. Trading above its 50-day moving average, WLP is a BUY.
Celgene Corporation (CELG) gained 4.82%. Celgene continued to rise last week on news that its drug Abraxane received approval from the Food and Drug Administration for use with Gemcitabine as a treatment for pancreatic cancer. A recent study found that the drug combination increased survival rates in patients with metastatic pancreatic cancer. CELG is a BUY. Raise your stop to $156.90.
Gentherm (THRM) added 4.39% last week. Gentherm has stayed above the 20-day moving average for nearly eight weeks now, dipping only once to touch and bounce higher. This confirms short-term bullishness in THRM’s chart. However, THRM just touched a long-term $20.75 resistance level and may see some volatility in the coming week as the stock tries to break out above this level. THRM is expected to report earnings on Oct. 31, before markets open. THRM is a BUY. Raise your stop to $17.72.
Google Inc. (GOOG) ended the week up 15.98%. The big jump in your brokerage account balance last Friday was not a computer glitch — that was just Google reporting earnings and finally joining the “$1,000 club.” Google’s earnings report confirmed that it excelled in nearly every metric that an analyst or investor would care about — and by large margins. The only exception was a measured loss in its newly acquired Motorola Mobility business — a venture that I expect will be soon profitable, given the growing popularity of Google’s latest Moto X device. The stellar earnings figures proved beyond the shadow of a doubt that Google is a powerhouse in nearly all facets of its business and is growing stronger. Google has become, as I have called it, “the General Electric” of today. GOOG is a BUY. Raise your stop to $960.00.
AutoNation (AN) traded sideways last week, hugging its 50-day moving average. With its earnings report coming later this week, I expect more of the same pattern to persist with a little volatility as traders position for AN’s coming earnings report. Based on recent reports in showing strength in auto sales, AN may report a very strong quarter on Oct. 24, before markets open. AN is a BUY.
Krispy Kreme Doughnuts (KKD) gained 2.17% over the past five trading days. KKD moved above its $23.25 resistance level last week, reflecting bullishness ahead. KKD will report earnings on Nov. 19, after markets close. KKD is a BUY. Raise your stop to $22.70.
Melco Crown Entertainment Limited (MPEL) accelerated its gains last week, powering 7.56% higher. Several positive reports from analysts predicted a bright future for MPEL. Macquarie upgraded MPEL to “Outperform,” citing positive “market growth expectations.” Jefferies upgraded MPEL to “Buy” and Credit Suisse was bullish on the stock after reviewing the Macau gaming sector. Any pullback would offer a terrific entry point. MPEL is expected to report earnings on Nov. 6, before markets open. MPEL is a BUY. Raise your stop to $34.32.
MercadoLibre (MELI) rose 7.40%, hitting a new 52-week high. MELI’s swift run-up comes on the heels of a recent dip to the 50-day moving average. This type of trading action suggests that MELI investors are hungry for shares and likely to keep buying. Chart readers call this trading pattern a “cup,” and that means that MELI likely will move up past its $140 resistance point this week. MELI is expected to report earnings on Oct. 31, after markets close. MELI is a BUY.
iShares MSCI Spain Capped Index (EWP) rose 4.81% last week as momentum in this “Spanish express train” showed no signs of weakening. EWP is one of three “PIIGS”-based exchange-traded funds that have enjoyed record inflows this month. The strengthening euro is giving investors growing confidence in this region, even in the face of the high European debt to gross domestic product (GDP) levels. Now the second-best-performing market in the world after Ireland in 2013, EWP is up 27% since Jan. 1 and remains a strong BUY.
Latest Special Report
As a courtesy, I want to bring to your attention my latest special report, the newly updated version of The Top 12 Stocks You Should Buy Right Now, which features three of my top investment recommendations, as well as bonus picks from each of my fellow investment newsletter editors at Eagle.
In addition, take a look at Hedge Fund Secrets Revealed: A Simple Four-Step Technique to Manage Your Money like a Hedge Fund. This FREE report gives you the four-step process to maximize your profits just like the best investment pros do. Both of these special reports are accessible FREE on my website.
