HollyFrontier $HFC to be added to @TradeIdeas HOLLY Hot List

April 9, 2018

Slippery markets are certainly making it tough for Traders getting caught in the schizophrenic back-n-forth we’ve seen in indexes since the S&P 500 first found it’s 200-day moving average on March 23rd.

However, for those who can tune out the noise and zoom out to a longer-term focus, we think HOLLY has uncovered a pretty compelling opportunity in the oil patch. Check out HollyFrontier $HFC, an independent petroleum refiner in the United States with operations throughout the mid-continent, southwestern and Rocky Mountain regions.

The stock has been on a tremendous tear, up nearly 100% in the past 12 months, but more importantly it is closing in on breaking through resistance that dates back to 2013 when it last saw all-time highs. With this kind of momentum happening against this current market backdrop, $HFC offers a chance to hitch a ride on the back of one of the next market leaders.

As such, we’ll be adding $HFC to the HOLLY Hot List at tomorrow’s opening print (Tuesday April 10, 2018) and we’ll keep long the stock until we experience a 20% drawdown from our highs.

HOLLY Hot List portfolio update:

Recent market volatility cost us positions in two names since our last update. We lost $SGH on April 4th, but at least we got to hold on to some profits. If you held to the bitter stop loss, you still kept +13% gains. If you were more dexterous, you had an opportunity to participate in as much as +41% upside from our entry price.

We also lost $ZGNX on April 6th, and this one was a classic: We nearly quite literally bought the top, and the stock went practically straight down since our entry day. This one hurts. If you held with us the whole way, you swallowed a full 20% loss. A rare occurrence indeed.


Seriously, a comically bad entry!

Portfolio numbers aren’t all that sexy, but considering the market environment we’ve been in, -5% in a portfolio of long, highly volatile momentum stocks is pretty solid when the S&P 500 is down -2% YTD. And in most cases, there were plenty of opportunities to trade around these positions and minimize losses and capture additional gains.

Stay the course.

If you’d like to learn how HOLLY, the Artificially Intelligent Virtual Analyst, can improve your trading and investing results, please visit Trade Ideas.

Good luck out there!

~ Sean McLaughlin (@chicagosean)