Over the past few weeks I’ve mentioned that I’ve generally been constructing my portfolio using a long oriented barbell approach. One end of the barbell are momentum stocks such as AAPL and IBM. On the other end are lower quality stocks such as MI and LYG.
Payment processing is one group that I’m looking to add to my momentum group. I’m not ready to jump in just yet but I’m keeping these names on my radar. This group includes V, MA and GPN. My favorite of the group is V.
V is working on making an all time high. I’m not quite ready to buy yet. We already had one attempted breakout that failed. We did get one failed breakout meaning that we’re closer to this being ripe for a breakout. However, I’m being cautious and I’ll wait a bit for the moving averages to catch up a bit before I jump in.
While V is my favorite, when I bet on a group, I usually spread my trade across a few different stocks. Nothing would be more frustrating than to see MA takeoff and V underperform. I’m not ready to enter yet and I’m therefore not setting an entry point.
GPN reports earnings on January 7. Let’s wait and see whether a good earnings report and drive this over its all time high.