Let’s Ring The Register With GO. MTDR Moves To HOLD
Grocery Outlet (GO)
On June 15 I added Grocery Outlet (GO) and that stock his now up roughly 14%. Last week GO bumped up against its 2021 high near 46.6 and has pulled back 5% since. While shares could certainly break higher after earnings (in two weeks) in this environment anything can happen and I think the odds of a “break and run” are not in our favor. Let’s lock in the gain now. SELL
Matador Resources (MTDR)
Last Wednesday I added Matador Resources (MTDR) to our portfolio as a trade opportunity and the stock is up almost 20% since. A good earnings report helped, as has a strong market. Suffice to say a roughly 20% gain in just over a week is a very good trade. If you wish to sell, I wouldn’t fault you. However, I’m going to give MTDR a few more days. My reasoning isn’t complicated – we’re seeing CVX, XOM and other energy names move higher after earnings and MTDR has 20% upside until it reaches overhead resistance at its recent high (from last month). I’m not calling for a new high, but with that much room to the upside I feel like sitting pat for a few days is the right call. That said, I’m moving MTDR to HOLD since I think the “easy money” has been made. HOLD