ManyPeaks.com

After purchasing our first batch of Buffalo Wild Wings (BWLD) last Friday, we added to the new investment on Monday.
I had placed bids in the $61.50 range hoping for a quick morning spike down on Friday, but that didn’t occur and I had to settle for a $63.50 price on the first lot. Monday’s action then verified my short-term hypothesis on the stock, so after waiting most of the day to see if the gains would stick, I added to the position.

The daily volume pattern (high on up days, small on down/sideways days) is very promising, and the huge short interest means that many folks bearish on BWLD are watching their losses accumulate. Many times, this type of situation evolves into a short squeeze in which over-aggressive short sellers add fuel to the fire as they all try to rush through the same exit door at once.

It was a solid day, but not all roses in stock-land. One positoin that I cut from ManyPeaks accounts today was Hurco (HURC). We had re-bought shares on Friday because of the upside reversal. But with no participation in a +1% day for the indexes (and huge day for many individual stocks), HURC had to go. What is it most likely to do in a weak market if it can’t show strength today?

We now have a definite lower low (last Thursday versus early March) and a potential lower high (Monday versus mid-March) — it’s not an “Earns+” anymore either (stock price now lower than the close on earnings day, which was the huge up move in mid-Feb).

There are far better opportunities at present, but HURC has good enough fundamentals to remain on my radar for a better risk/reward setup in the future.

Overall, we were fairly active today. We re-started our short hedge using the Nasdaq 100 Ultrashort Fund (QID). But just nibbling there so far, as we’re primarily in shopping mode for new, promising stocks.

Long BWLD, QID