ACTIONS:

Buy Brocade Communications Systems (BRCD, $11.47, up $0.10).

Buy AT&T (T, $33.88, down $0.03).

 

Dear Momentum Stocks Weekly Subscriber,

I have two New Trades for the Momentum Stocks Weekly portfolio that could easily provide high double-digit returns over the next six to 12 months.

These two recommendations are at attractive entry levels, and each of them sports a nice dividend yield. Both stocks trade options, so I can also write covered calls on them down the road, if needed.

 

Buy Brocade Communications Systems (BRCD, $11.47, up $0.10).

I will have a more detailed write-up for this trade on Monday, along with chart work, to explain why I like Brocade at current levels.

 

Buy AT&T (T, $33.88, down $0.03).

Shares are holding their 200-day moving average, and the 52-week low is at $31.74. There is further risk to $30 on a drop below this level, but I’m looking for support to hold. The current dividend yield is 5.4%, and I like the risk/reward this trade offers.

 

All prices given in this update are current as of 1:30 p.m. EST.

Every new Momentum Stocks Weekly recommendation is listed with the price at which I entered my own position. If the price is slightly different than my recommended entry or exit price when you receive the alert, don’t let that keep you from getting into or out of a trade. Occasionally, you might even get a better “fill” price than what is posted in the Open Trades and Closed Trades.

Trade on!

Signed

Rick Rouse
Editor
Momentum Stocks Weekly