Trade Ideas: KVHI

Another volatile day for the markets as indices struggled to gain a foothold from their freefall. The SOX took the brunt of the selling, but each day of downside brings the markets closer to a more compelling bottom. June should see a summer bottom in place - good enough for a 3-4 month rally.

The next rally will entertain talk of a return to the secular bearish decline (lower highs), a double top (equal, to new 52-week highs), or business "as usual" (a chugging rally). But buying opportunities for the nimble should present themselves very soon. Until then use now as a time to look for pockets of strength, build a watch list of stocks (it will be short!) and see how they ride out the next few days. Stocks which sit 1-2% from major support are probably worth a long-side pop while allowing for minimal risk on capital.

I have implemented such a strategy in my Collective 2 portfolio with three long-side positions entered last week. I will be looking to add more over time.

One stock for the watch lists is KVHI. Key resistance lurks at $11.50 but the stock did manage a break of a small triangle (of $11 resistance) on light volume to set this up for a bigger challenge on $11.50. Earlier MACD 'buy' trigger sides the momentum with the bulls.

KVH Industries, Inc. engages in the design, development, manufacture, and marketing of mobile communications products for the land and marine markets; and navigation, guidance, and stabilization products for defense and commercial markets in the United States.

**Update May 23rd**:

Nice pop...

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