Pure Storage Inc $PSTG to be Added to @TradeIdeas HOLLY Hot List

May 12, 2018

It’s a Bull Market, you know. And it’s being led by Software and Big Data.

Pure Storage Inc, a computer storage device manufacturer and software developer, came public in October 2015, trading as high as $20 per share during it’s first month of trading. It did not return to those levels until January of this year. After peaking in February around $22.50, the stock spent about 10 weeks digesting it’s new levels, and this past week finally broke out of the range to start printing new highs again.

A look at a monthly chart shows this is a name that might only just be getting started:

Meanwhile, HOLLY detected a catalyst in the market for shares of $PSTG this week and issued a buy signal. After perusal of the above chart, as well as noticing the increasing volume trading coming into this name with a market cap of $3.8 Billion, I felt it appropriate to add it to our portfolio:

We’ll be adding PSTG to the portfolio at the opening print of Monday’s trading, and as with all HOLLY Hot List stocks, we’ll be trailing this position with a 20% trailing stop. As long as the stock stays within 20% of it’s highs, we feel it offers asymmetric opportunities for outstanding returns. Of course, I could be wrong, so please size your position carefully.

HOLLY Hot List Portfolio Update:

Our portfolio had a banner week as the broader indexes bust higher out of the developing triangle pattern that had the whole world watching. Many stocks hit new portfolio highs, allowing us to raise stops for many of our names. The biggest gainers over the past 5 trading days were: $GDS (+19%) $TDOC (+14%) NBIX (+12%) NTNX (+12%). The only real laggard was $SAIL (-4%).

Prices as of the close of trading, Friday May 11, 2018

 

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)