Week 2 Breakout Forecast 2019: Short-Term Picks To Give You An Edge

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Includes: DNR, FNJN, HROW, XXII
by: JD Henning
Summary

Two new Breakout Stocks for Week 2 with better than 10% short-term upside potential for subscribers only.

Performance results for 2018 ended with +34.83% gains, outperforming the S&P 500 by +40.05% over the same trading period.

Total returns for the Breakout Stocks since 2017 is 76.02% compared to 7.76% for the S&P 500 over the same trading period.

The Momentum Gauges improved significantly with positive momentum up to 18 and negative momentum down to 31, a low in negative momentum we have not seen in months.

Continuing from last year now makes it 74 out of 87 trading weeks (85.06%), with at least one stock move 10% or greater within a 4 or 5 day trading.

Breakout Stock Portfolio 2019 results -1.04%

The returns above represent a red warning week with negative momentum for the full four-stock selection portfolio. The two stocks published last week returned the following results:

Symbol BUY price Closing Price End Wk % Highest Price Top % Gain Wk
Week 1 Harrow Health (NASDAQ:HROW)/Imprimis Pharmaceuticals (IMMY) 5.18 5.39 4.05% 5.83 12.55%
Week 1 22nd Century Group (XXII) 2.66 2.76 3.76% 2.8 5.26%

IMMY switched symbols and company name midweek last week to HROW.

Momentum parameters for the start of Week 1 per last week's article began at a very low 3 Positive and 78 Negative on the Momentum Gauge. For Week 2, the selections begin the week with Momentum values at 18 Positive and 31 Negative.

Value & Momentum Breakouts Dashboard

Using the signals of the Momentum Gauge may significantly improve your returns in 2019. Two conditional signals that are very important to watch:

  • Avoid/Minimize trading when the Negative score is higher than the Positive momentum score.
  • Avoid/Minimize trading when the Negative score is above 70 on the gauge.

The Week 2 - 2019 Breakout Stocks for next week are:

The four Breakout Stocks to start Week 2 consist of 1 basic material and 1 technology stock. The Momentum Gauge levels signal declining negative momentum conditions - trade these selections at your own risk.

  1. Denbury Resources (DNR) - Basic Materials / Independent Oil & Gas
  2. Finjan Holdings (FNJN) - Technology / Application Software

Denbury Resources - Basic Materials / Independent Oil & Gas Price Target: 4.00

Jan-02-19 06:04 PM Here's Why These 3 Oil Stocks Surged 10% Today Motley Fool
Jan-02-19 09:25 AM Kaskela Law LLC Announces Stockholder Investigation of Denbury Resources Inc. - DNR ACCESSWIRE
Jan-01-19 06:03 AM Oil Stocks: 3 Bold Predictions for 2019 Motley Fool

Denbury Resources Inc. operates as an independent oil and natural gas company in the United States. It holds interests in various oil and natural gas properties located in Mississippi, Texas, Louisiana, and Alabama in the Gulf Coast region; and in Montana, North Dakota, and Wyoming in the Rocky Mountain region.

Finjan Holdings - Technology / Application Software Price Target: 3.50

Dec-24-18 01:58 AM Moving Average Crossover Alert: Finjan Zacks
Dec-17-18 08:30 AM Jury Finds Non-infringement of Claim 10 of Finjans 494 Patent by JuniperGlobeNewswire
Dec-13-18 06:24 PM Edited Transcript of FNJN earnings conference call or presentation 13-Nov-18 9:30pm GMT Thomson Reuters StreetEvents

Finjan Holdings, Inc., a cybersecurity company, provides intellectual property licensing and enforcement services in the United States and internationally. The company owns a portfolio of patents related to software and hardware technologies that proactively detect malicious code and thereby protects end-users from identity and data theft, spyware, malware, phishing, Trojans, and other Web and network threats.

Caution: These stocks are not necessarily recommended for long term buy/hold unless you are comfortable with very large price swings. These are the most volatile selections I offer from among all the different Value & Momentum portfolios.

All the very best to you in the New Year and have a great week of trading!

JD Henning, PhD, MBA, CFE, CAMS

Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in DNR, FNJN over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.