It has been a tough one. His bias is to stay away from this one. He has been looking at taking a shot at this one, though. The recent range is quite positive as it absorbed the news in the last two days. It is interesting form a technical perspective. $2.30 makes it interesting and a he has a target over $4. If it breaks below $2.30 then it could below $2.
(Top Pick Feb 5/16, Up 5.84%) They were higher, but fell a little bit. This one got hit a little bit more than the sector. It is going to focus on its comps and its digital business. It is doing a bit of base building. You get paid nicely to hold it now. If it does not hold $65.80 then he would be concerned. It looks good here at this level.
He uses a linear regression line right through the mean. With dynamic regression it may not come back to you and you might have to just buy it. He would just take your initial position here. There is a bit of a level around $6.60 where there is support. There are also levels in the high $5s. It has an upward-to-the-right look. Take a half or third position and then take more and that will confirm it is doing what you want.
Markets. Valuations have run ahead a little bit. The Trump rally surprised a lot of people as did Brexit. The French election will probably get the world’s attention. Breakdowns are not always what they seem. There are some things that are not adding up. What is the fuel for the year? The VIX is also going up. Part of this last little push last week is that a hedge fund had to cover an error in their prediction. The breakout confounded everybody. Now we have a pause. For a month or two there is a risk of a correction.