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Stocks to Watch Next Week: HOLX and NXRT and a Leveraged ETF
The Stock Market has pulled back over the last two weeks. The SPY dropped 3% and the same with the QQQ’s. What do you do in a time like this? Easy look at

The Stock Market has pulled back over the last two weeks. 

The SPY dropped 3% and the same with the QQQ’s. What do you do in a time like this? Easy look at the past, block out emotions, news and look for great deals. A lot of people end up panic selling thinking of doom and gloom situations and how they cannot afford to lose any more money. Do you swing trade in times like this? Buy stocks on the pullback for the long haul? Swing trade leveraged ETFs? Just depends on your style. The best thing you can do if you mentally and emotionally cannot handle the swings is to set up something like E*TRADE's automatic investing account and just continue to add weekly and do not even pay attention to the market if you cannot stomach it. There is always risk in the market and yes bull markets do end, and bear markets do happen, but do not live-in fear. If you are buying companies, you like now you should love them cheaper and average down your position. 

 Two stocks to watch based on their chart alone. 

   1. HOLX Hologic Inc 

This company is in the healthcare sector mostly in diagnostic equipment. They are a manufacture of a Covid test and considering all the mandates coming out should defiantly give them a little more business. The chart shows a 5% potential just to their most recent high and about a 10% potential if it goes back up to the February high. With the market in a pullback state, to see this stock having a green day, very oversold and above the 50 and the 200 simple moving average makes it a good entry point for a swing trade or a long-term hold. It also seems to be performing a perfect bounce off the bottom Bollinger band. It has an average buy rating with a price of $83.83 which is an 8% upside and a high price target of $95 which would give you a 22% gain. Of course, it could find its way back down to the $60 area, but I am more inclined to believe this will produce a 5-10% gain in the short term. It is only trading at a 9.9% PE, so it is not overly expensive.

HOLX stock chart
  2. NXRT NexPoint Residential Trust 

This company is a REIT (Real estate investment trust) and pays a quarterly dividend of 2.2%. That is not what I am buying for, but some people do look for REITs and Dividends in general. What drew my attention was the chart. It has had about an 8% pullback from its recent highs, in the oversold area, looks to be bottoming and looking for a reversal right above the 50-day simple moving average which looks like a great area of support. Keep in mind this is trading at a 102 PE which is expensive, but some things just are, and that does not mean you cannot swing trade a 10% profit in the next month. Looking at the business, their properties, dividends etc. This may not be a bad way to invest in the real estate market without owning and managing property, just keep your dividends reinvested.

NXRT stock watch
Leveraged ETF lining up for a swing trade. 

I do not know why I love XBI so much, it is like a love hate relationship. I say that because I am going to end up breaking one of my rules on this one which I hate doing. When I swing trade leveraged ETF’s I always base my trading from the non-leveraged version. Meaning I watch XBI and when I want to trade it, I trade LABU. Part of my holy grail trading strategy does have a rule to make sure it is above the 200sma, right now XBI is not. The chart is so enticing this is a trade I placed a buy order to buy on close on Friday. XBI has been consolidating between the $119 and $138 range for 6 months. On Wednesday and Thursday, it hit oversold territory and at the same time bounced off the 50 sma. If traders start getting out of other sectors, we could see a rotation back into biotech hopefully sending it back to its highs in February of $174.79 which would be a huge run for LABU. I do not believe it will be a one month or one swing trade but when I look for opportunity and potential in the market right now this is what I think is the best place for my cash. Even if it sits for a year to hit its all-time highs again that is still a wonderful year.
Leveraged ETF chart LABU

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