+16.35%  Profit within 6 Trading days utilizing 8 week hold rule

Mr. William J. O'Neil (Founder of Investors Business Daily) has a rule which states:

"If your stock gains +20% or more within 1 to 3 weeks of a proper breakout, hold it for atleast 8 weeks".

Stocks with such a power often become the biggest winners.  A true leading stock that make such powerful gains is a sign that the institutions have an interest in acquiring more of these shares.  Institutions do not want to spook the market and show their true intentions and as such, there will usually be a period of consolidations before the stock makes another similar move when the institutions come back to acquire more of these shares.

$CTRL  was such a stock that appeared on my weekend stock research that I religiously follow.  On August 3rd, the stock broke out from its proper breakout point of  $26.59  in volume that was 6 times the normal average daily volume of shares changing hands.  The next day it closed at  $33.12 (+ 24.56 gain within 2 days) triggering the 8 week hold rule.  There was a clear foot print left by the institutions and their intentions of acquiring more of these shares.  Stock began consolidating the following week to digest these gains before the institutions would make another attempt to acquire more share.

Trade Plan for $CTRL:

Entry:  $31.20 (got filled at $31.18 on Wed Aug 15th).

Exit:  for initial profit target  $34.32  for a  +10% gain.

Exit : for loss target  $29.64  for a  -5% loss.

The following Tuesday and Wednesday (Aug 21st and Aug 22nd), the institutions came back and began accumulating shares again. There was 2.5 to 5 times the daily average volume of shares traded these 2 days and the position was closed out at market open the following day on Thursday Aug 23rd at  $36.30  for a quick   +16.35%  profit within 6 trading sessions.  Stock has already made a parabolic move of +38.62%  since breaking out of its proper buy point of  $26.59  3 weeks ago.  It is likely to consolidate for several days again or possibly retrace to its 50 day sma(Simple moving average).  Such powerful stocks quite often retrace to its 50 day sma where the institutions often choose to support these stocks.  

Mentoring  Program

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Roy T. Bennett, The Light in the Heart

Leading Index  $QQQ  is  + 17.15%  year to date.  October through January are the best performing months in the stock market.  You should always measure your portfolio against the leading index  $QQQ.  Is your portfolio lagging the leading index year to date?   If it is than you ought to seek help and let us help you out perform the market with our one on one individualized mentoring.  

Schedule a  FREE  30 minutes of  "Discovery Call"  with us and let us help you to profit in the market.  Let us show you how to identify Growth Stocks that are fundamentally sound and technically set up to help you Out Perform the Market.

Happy Trading!

Amin