+12%  Profit  within  13  Trading days utilizing  8  week  hold  rule

Last week I had shared a trade on  $CTRL  that gained  +16.35%  profit within 6 days.  This week I will share a similar trade on  $FIVE  that  gained  +12%  profit within 13 trading days to date.  Both these trades had one thing in common.  They both surged over  +20%  within 3 weeks from its buy point, triggering an  "8 week Hold Rule".  Mr. William J. O'Neil (Founder of Investors Business Daily) came up with this 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 powerful move in volume that is sometimes 5 to 8 times the normal average trading volume often become the biggest winners.  This sort of powerful surge is a sign that institutions are really interested in grabbing every share of the stock they can lay their hands on.  Stocks will often consolidate soon after such a powerful move for several weeks.  Institutions usually will start accumulating shares again within this 8 week time frame or possibly soon after that.  This was an observation made by Mr. William J. O'Neil and he came up with this 8 week hold rule.

Trade  Plan  For  $FIVE

June 7th was the earnings report for the 1st quarter.  Institutions reacted positively and the stock surged over  +20%  within a week.  Trading volume was 12 times the normal average trading volume that day.  This was a foot print left by the institutions indicating their interest in acquiring some more shares of this winning stock.  Stock began consolidating tightly and smoothly and never breached the 34 day ema (exponential moving average).  Stock began hovering tightly around  $104.09  buy point for 4 days of Tuesday August 7th thru Friday August 10th.  Trade was initiated first thing the following Monday August 13th.  Here are the details of the trade plan:

Entry: $103.99 (got filled on Wednesday Aug 15th)

Exit: For initial profit target  $116.47 for a  +12% gain

Exit: For loss target  $98.79 for a  -5% loss

Stock met its profit target precisely at  $116.47  on Friday August 31st.  Stock is once again trading tightly and orderly for the past 6 trading days as it approaches its earnings announcement on Thursday September 6th.  Stock had surged more than  +10%  within 3 days prior to earnings in June and went on to gain an additional  +20%  within a week after the earnings announcement.  Currently I plan to hold onto the position until wednesday before considering harvesting profits.  Stock is currently trading above the 8 day ema for the last 4 weeks in a very orderly fashion.  Follow along with me on this trade and I will share with you how I mitigate the risk of earnings day on Thursday  September  6th with this stock. 

Mentoring  Program

"Don't be afraid to take a big step when one is indicated. You can't cross a chasm in two small jumps"

By David Lloyd George (British statesman) 

Leading Growth Stock index  $QQQ  is  + 19.83%  year to date.  August month delivered a whopping  +5.78%.  Best trading months are from October through January.  Is your portfolio lagging the leading Growth Stock index?  If it is than take that big leaping jump and get on board with our mentoring program.  Currently my students and I have identified  35  such leading growth stocks that are meeting our 8 week hold rule.  Let us help you with your trading and investing with our individualized  mentoring program.

Schedule a  FREE  30 minutes of  "Discovery Call"   with us and let us help you to profit in the market.  We only have a very limited number of spots left for the fall.  Secure your spot now to take advantage of the best months ahead in the market.

Happy Trading!

Amin