Trading Opportunities: Stocks that Hedge Funds are Buying (11/14/2012)

In this post I detail several stocks that are trading near trendline or resistance levels.

I buy them as it moves over the trendline from a well formed base/consolidation and I make sure that the volume is above the daily average after the breakout occurs. I never pay up by more than 5% above the trend line.

I am also very quick to sell if the stock returns back to the trendline or buy point, using a stop loss that is no more than 2% of my initial buy price. I will explain my step-by-step methodology in following posts.

Here are some stocks I am watching for a potential breakout:

Apogee Enterprises (APOG)

I will buy the stock if it breaks the $20.75 level with increased volume.

Bank of America (BAC)

I expect a potential retest of $9.70 if the market resumes its uptrend. Do not buy the stock right now!

BlackRock (BLK)

This stock is fundamentally solid and I expect to buy when it crosses the trendline in $192.5

Ctrip.com (CTRP)

Powerful hedge fund Omega Advisors just bought this stock at current levels. I will buy if shares crosses the trendline in $21.5

John Deere (DE)

I will wait until this stock breaks the level of $87.5. Expect a powerful move if that happens with increased volume.

First Solar (FSLR)

While fundamentals of the whole solar sector are poor, First Solar and others are consolidating. Look for a breakout above $26 with increased volume.

Intuitive Surgical (ISRG)

I will buy this fundamentally solid leader if the stock breaks the trendline with increased volume

PetSmart (PETM)

One of the best fundamental stories in the whole retail sector.  I will buy if the stock breaks the trendline with increased volume.

Qihoo 360 (QIHU)

The next big story in China Internet sector. Expect a rise if the stock breaks the level of $25. For now just wait..

Sirona Dental Systems (SIRO)

Sirona new product is going super strong and is a true innovation in the dental sector. I will buy if the stock breaks the trendline above $59, for now, expect more consolidation and horizontal trading.

SunPower (SPWR)

Similar with First Solar, fundamentals from the whole sector are weak but the stock is consolidating.

Tivo (TIVO)

Powerful hedge fund Omega Advisors recently bought this stock. I will buy it if I see increased volume in the $10.60 resistance level.

Vitamin Shoppe (VSI)

I will buy it if the stock crosses $62 with increased volume. Another great retail story.

Ventas (VTR)

Look at this stock if it breaks the trendline with increased volume. Great chart here.

United States Steel (X)

Expect more consolidation at this levels. Then the stock should break the trendline.

Yum! Brands (YUM)

I will look at the stock if it breaks the trendline in $73.5