There’s a bull market in some things, and David has found one of them.
David’s Buy pick: RGR
Courtesy of The Oxen Group
Note from David: The buy pick is made every evening at Midnight before the next day begins. The pick is for a single day-trade of a stock or ETF. The Oxen Group provides analysis, entry/exit points, resistance levels,… Picks are only single day trades.
The Oxen Group, for Friday, is hoping the market may be able to extend some gains. One thing is for sure that tomorrow will tell us a lot. With absolutely no major economic data to be released, we will see where this market is headed. Futures are up currently on some nice earnings in after hours, as well as, a bullish day from our friends across the Pacific Pond.
One company that really shined on Thursday evening was Smith and Wesson. The company gave a revenue outlook that was very bullish as they said their quarterly revenue rose 20% above last year’s numberss. The stock jumped 14% in after hours. Further, they said their backlog is now over $200 million. The real kicker was that they said their demand is up, and they have not seen demand like this in a long time. Whether its the recession or something else, citizens seem to really want to exercise their right to bear arms.
Another company that could benefit from this news is arms producer, Sturm, Ruger and Company (RGR). The company got a minor 7% pump up in after hours on the news from SWHC, and the company should continue that positive trend tomorrow as news will make the market. We don’t like SWHC because it will pop up too high to make a large move, but Sturm should have a better ability to gap up less and move up higher on the bullish news. Technically, this news is perfectly timed, as well. The stock is at exactly a flat zone. It is really neither overbought or oversold. It is not overvalued or undervalued as well. The news should give a lot of buyers reason to jump in tomorrow.
Entry: First 10 – 25 minutes of session.
Exit 2-4% increase from buyin price.
Resistance: 12.50
