Investor Spotlight

Monday, February 18, 2019

$CYBR +34% Within 6 Weeks

Mr. William J. O'Neil (Founder of Investors Business Daily) has identified several key rules on Growth Stock Investing in his book:

"How to Make Money in Stocks" (4th Edition).

In the last several weeks, I have highlighted some of those rules in my post. These rules and concepts may appear to be counter intuitive at first. After having followed the IBD(Investors Business Daily) system of Growth Stock investing and staying disciplined with my routine of scanning 150 to 200 stocks every weekend, I can assure my readers that the system does work. I have identified $CYBR stock as a case study for you to follow and grasp these basic concepts of:

Always buy something on a "Follow Thru" day.
Buy High and Sell Higher.
Do not diversify but instead concentrate your portfolio to just a few winning stocks.
Observe the "8 Week Hold Rule"

How $CYBR Trade Unfolded

We had a "Follow Thru" day on January 7th. Initial position was initiated at market open for $69.72. Stock quickly made +14% within 6 trading sessions.
Second position was initiated on January 16th at market open for $80.75. It quickly made +7% before the earnings announcement on February 14th.
Both the positions were +14.75% on average the day before the earnings announcement. There was plenty of cushion in both these positions to hold through the earnings announcements.
Last 3 earnings in May, August and November, the stock was propelled higher by +10% in trading volume that was 2 to 6 times the average daily volume. It gapped up every time too. This was a signal left by the institutions that they were accumulating shares of this stock.
Earnings was reported on February 14th and the stock gapped up by +20%. Volume was 7 times the daily average trading volume that day. Stock has been trading above the 8 day ema(exponential moving average) ever since the "Follow Thru" day. It's been extended now and one can expect for it to consolidate for a few days.
Currently, both the positions are averaging +34% gain in the last 6 weeks. Since the stock gapped up +20% during earnings with very strong institutional demand, it's likely to go even higher. It's worth holding onto a partial position for more gains.

Mentoring Program

"There will always be challenges, obstacles and less than perfect conditions. So what? Get started now. With each step you take, you will grow stronger ... and more and more successful"

By Mark Victor Hansen (author)

2019 will be a very challenging year in the market. We have had a very successful "Follow Thru" day. Market continues to grind higher for the last 8 weeks. $QQQ is still butting its head against the 200 day sma that is acting as a strong resistance now. There is no guarantee that the market will continue it's bullish rally. We could get the indexes to consolidate and possibly retest its Dec 24th lows. On the flip side, we could be heading to the all time highs of September 2018.

Schedule a FREE 30 mins of "Discovery Call" with us and learn:

How to find the winning Growth Stocks?
How to Buy the Stocks Right?
How to Sell your Stocks Right?
How to TIME the market?
How to protect and harvest your Profits?