When a stock breaks out of a nearly two decade-long base, does that mean the top is in?
That’s a trick question. The answer is no.
This spring, Korn/Ferry $KFY did just that. It broke out of levels last seen in the year 2000 and week ago, we popped higher again and big volume signaling to the market that this trend is for real. Apparently it’s a bull market for executive search firms, compensation specialists, and employee engagement services.
The day after $KFY’s most recent breakout, HOLLY identified a catalyst that got her into a trade, and that put the stock on my radar for possible inclusion in the HOLLY Hot List. And today, we added the name at today’s opening price of 63.94.
SWING TRADERS: I’ll be adding Korn/Ferry $KFY to the @TradeIdeas HOLLY Hot List at the open of trading tomorrow. Stock is breaking out of a nearly TWO DECADE long consolidation. pic.twitter.com/Pf3TSzv422
— Sean McLaughlin 📈 (@chicagosean) June 18, 2018
As with all of our swing trades, we’ll trail a stop at 20% from highs. The more aggressive of you might consider using the $55 level as your stop placement to start, thanks to that big gap last week that defines a pretty clean level.
HOLLY Hot List update
As of yesterday’s close, the biggest list drivers of the past 5 trading days are $DCPH (+16%) TDOC (+16%) and NTNX (+13%). While the laggards have been $CEIX (-5%) $HFC (-4%) and $FITB (-4%)
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)