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Stock Watchlist: January-February 2020



New Year, New Stocks



Happy New Year, traders!

The 2019 trading year finished with a great performance for Wall Street, and also for some followers of this blog (thanks for the private messages!). Hopefully, the recommendations from the "Watchlist Update" posts and my daily tweets did it well. If you follow and trade them, good for you. It's your own responsibility.

For this 2020, I reduced to 15 the stocks of my Watchlist. I'm holding some stocks from my last Watchlist November-December, due to its good performance in these two months and an interesting forecast for next quarter:

- Disney DIS: my favorite stock for 2019 and a candidate to repeat this year.
- Fiserv FISV: now consolidating, ready for its next breakout.
- Kroger KR: we all need a defensive stock in our watchlist, and Kroger did well that "mission", rising when the market corrects. The recent alliance with Walgreens is another hit.
- Lennar LEN: its recent brilliant Q4 earnings report could send its shares up the $60 level.
- PayPal PYPL: in slow recovery since three months ago when it touches the $100 level. Next earnings on January 22th is a great chance to confirm its bullish bias.
- Ross Stores ROST: another 2019 gainer. Many sentiment trading here: I love this stock.
- Twitter TWTR: like PayPal, the next earnings on January 23th could reinforce its recent slow recovery.
- VMWare VMW: a classic from all my watchlists, despite a flat 2019,  I still trust in the products of this innovative cloud company.

I also keep my short position in Beyond Meat BYND. Its earnings report on January 27th. could send this overvalued stock during the first half of 2019, to its real value, I presume in order of $60-70.





New entries in my watchlist include "surprises", as is the first time here for some of them:

- Ambarella AMBA: in a strong bullish rally since my post when I advise that good earnings report didn't reflect in its share price. Stock rides from to $55.205 to $62.42 today.
- Boeing BA: every day a piece of breaking news... great stock for scalping trading, due to its increased volatility.
- Newmont NEM: another defensive stock, now at 5-year highs, can take advantage of recent increasing demand in gold.
- Netflix NFLX: returned to my watchlists, by demonstrating that is still strong in the streaming war despite new giants like Disney+. Golden Globes and Oscar weeks are usually favorable to this stock.
- Raytheon RTN: also a reenter to my watchlists, after a brilliant 2019. Aerospace-Defense stocks saw strong performance due to recent Iraq conflict, not yet finished.
- Shopify SHOP: popular online store, also called, exaggeratedly, the "new Amazon". Its great 2019 performance needs a correction to send its shares to its "real" value, definitely below $400.

I was tempted to include the VXX in this January watchlist. This ETF that follows the VIX, as a contrarian indicator, is an incredible weapon for technical traders to determine extreme conditions of bullish or bearishness of the market, using its inverse relationship: when the market is rallying, the VIX tends to drop; when the market is tanking the VIX tends to rise. Smart and serious investors use it to bet against the crowd when its greed level is extremely high, as nowjust review this accurate indicator. And mainly, they use it as protection or hedge for their investments. 

As you notice, it's a watchlist (include longs and shorts), not a "Buy" List. My suggestions, charts, and ideas regarding these stocks, in which I'm long, short or neutral, I do in the "Watchlist Update" posts. And more fresh data and ideas in my daily tweets through Twitter or StockTwits, which are much more friendly and dynamic platforms for a chat and get feedback from traders.


The image is taken on January 10th, 19:22 EST.
Favorite 15 stocks that I'm following during January-February 2019.