This post was first printed on Shareplanner.com last month. I am reprising it here on my new site.
The idea for this post comes from @Legacy_Trades who graciously contacted me over the holidays to be part of a "Twitter Pros" list of opinions and Best Longs, Shorts and Year End S&P target for 2013. Unfortunately, I was traveling over that time and as soon as I returned, I came down with a severe dental emergency that took me out of the game for a few days and I missed the deadliine. But I am ever so humbled and honored to be part of such a great list of traders and I graciously thank @Legacy_Trades for the mention in the post.
OK I know I have pounded the table on this one a lot, but my favorite long for 2013 is $PWER. I have been a champion of this company for a few years now and I believe they are a candidate for buy out in 2013. I am holding $4 calls in my long term account that will exercise next week and I will own the common from $4.
At this point, not only do fundamentals still look strong for this company but they are holding $2 in cash per share, they are making 50 cents a year in profit and the stock is trading at 2-3 times earnings.
From a fundamental perspective this is unheard of, but the chart looks ready for recovery too. It is coming off of a fry-pan, rounded bottom and is setting up a J-Hook pattern. There is a volume pocket from 4.75 to 5.75.
I also like $WFR long as solar American solar companies revalue themselves this year.
Another sector I will keep an eye on this year is oil services. We are on the verge of an oil boom the likes America has not seen in decades. Now that we figured out how to get all that oil out of the ground, we will likely become the world's biggest exporter, but this will also lead to lower oil prices over all so oil companies will not benefit, it will be the companies that provide the services to get the oil out of the ground and the shippers that take it to where it gets sold that profit.
When looking at shorts, I look at China solar names who are struggling with selling off debt and not playing ball with their government. I expect both $LDK and $STP to go under.
I also like $WPRT short but I am not sure where it will be at year end. Near term I expect a bad Q1 report and a drop to near $15.
$SPX year end target? That is a tougher one to predict. I think we have a lot of opportunity for economic recovery in 2013 but of course that also relies on the politician dodos to behave like human beings. Technically I think we can see a breach of 1600 for new market highs but will likely pull back for a close nearer 1575. But the real point here is that I am generally bullish on the economy and the markets in 2013.
You can access the original post from @Legacy_Trades here: Twitter Trading Pro’s Weigh In On 2013