Sept 5: HOLLY Hot List Update For Swing Traders

September 5, 2018

SMACK! Summer is over. Let’s get back to trading reality. Happy Autumn!

Interestingly, I’m starting to notice some smart people talking about some bearish signs that are beginning to appear. This type of commentary often returns with Traders coming back from summer vacation, and I expect this September to be no different. However, it feels like the smarter people who’ve earned my trust over the years are starting to exhibit a little caution.

Whether the top is in or not is not for me to decide here. I’m going to continue to follow prices until prices suggest a downtrend is in. And if our list of high beta names is any indication, the market is still running…

Before we get into results over the past week, here are the two new entrants to the HOLLY Hot List:

Bloom Energy $BE is a new issue and I expect it to be more volatile than most names on our list. And so far, the stock has been floundering since we entered. Similar story as the other name we added, Envestnet $ENV. I’ll chalk it up to the “last week of August trading.” We’ll see how they perform from here. I’m optimistic:

As with all stocks on this list, they will remain until we see a 20% pullback from their high prints.

HOLLY Hot List update

Our list has been led over the past 5 trading days by: $OLLI (+9%) $NVCR (+8%) and $PSTG (+6%).

Our laggards have been $USAT (-8%) $KFY (-5%) and $ROKU (-4%).

Not much to talk about since our last report. The last week of August is rarely anything to talk about. I’ll simply point out that the average alpha available per stock on this list has crossed the 20% threshold for the first time. Giddup!

Prices as of September 5, 2018


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Good luck out there!

~ Sean McLaughlin (@chicagosean)