Trade of the Day: Morgan Stanley (MS)

MS is a trade I return to again and again

   

Following the recent pullback, I’m seeing opportunities in big-cap stocks.

Advances out of shallow declines can be quite brisk and worth playing. I think there could be at least one final move higher into the end of February or beginning of March. I am still a little leery of small-caps and will avoid them for now.

And it should go without saying, but I will say it anyway — if instead the bears come out in force to renew the assault they launched last week, make sure to set a stop you are comfortable with so you can exit without much damage. Then I’ll be attacking the short side of the market with vigor.

Recommendation: Morgan Stanley (NYSE:MS) is a financial industry leader that has pulled back since last Wednesday, but appears ready to make a new assault on prior highs. In my Trader’s Advantage service, we were in this stock last month for an 11.75% return over 15 days, and I planned to return on a pullback. Well, here we are. Buy at current levels for a $26.50 target.

InvestorPlace advisor Jon Markman operates the investment firm Markman Capital Insight. He also writes a daily swing trading newsletter, Trader’s Advantage which aims to capture profits of 15% to 40% and often as much at 100% to 200% in less than 90 days. 

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