FOLLOW THRU DAY
"The first step in learning to pick market winners is for you to examine leading winners of the past to learn all the characteristics of the most successful stocks"
By William J O'Neil (Founder of Investors Business Daily)
Market does repeat and it tends to act in a very predictable manner. In 2016 November, the market just took off the day after elections. It happened again to day - and we still don't have a clear winner declared yet. As a retail trader, one thing we all need to learn is to hold our political biases aside and instead look at the DATA to drive our decisions. Mr Warren Buffett (greatest stock investor of our times), often has remarked that lots of times in his life, he has encountered a President that he did not vote for.
IBD (Investors Business Daily) declared a "Follow Thru" day at the close of the market to-day. We had a powerful rally the last 2 days. $QQQ was up +4.97% today and lots of growth stocks were breaking out in high volume. It's critical to start acting on taking small starter positions in several leading stocks now. "Follow Thru" days are a powerful TIMING signal for growth stock investors. It's a signal that let's us know that the institutions are on board and they are initiating positions in stocks of their choice. As retail investors and traders, we just have to follow the institutions since they account for over 75% of the daily trading volume in the stock market.
Stock Watch List
Many growth stocks broke out today from their resistance levels. Some bounced off their 21 day or 50 day sma (simple moving average). Some of the stocks that had triggered the "8 Week Hold Rule" (Look at my post on $NIO +81.53% since Oct 13th), once again surged higher today. List below I have highlighted the resistance/support levels in parenthesis. The ones that are bold faced are the ones that have broken out with the surge in price at their earlier or appropriate buy points. These are not recommendations but identified to help you in learning to read the stock charts. You must do your own due diligence to make the decisions that reflects your own individual risk tolerance.
- $APPS ... (35.35)
- $ASML ... (374.88)
- $BABA ... (299.00)
- $BBY ... (116.74)
- $BIDU ... (138.98)
- CPRT ... (118.56)
- $CRSR ... (24.70)
- $DADA ... (32.52)
- $DG ... (211.98)
- $DGX ... (122.86)
- $DHR ... (235.60)
- $DOCU ... (236.37)
- $DIOD ... (59.70)
- $DNKN ... (92.46)
- $EDU ... (164.75)
- $ENPH ... (100.40)
- $FCX ... (17.34)
- $FDX ... (275.0)
- $FIVE ... (140.14)
- $FORM ... (29.32)
- $FSLR ... (81.87)
- $GH ... (105.75)
- $GNRC ... (208.26)
- $HD ... (286.70)
- $HZNP ... (77.45)
- $IDXX ... (453.20)
- $JD ... (86.58)
- $JMIA ... (14.96)
- $LH ... (202.36)
- $LOW ... (171.72)
- $LOGI ... (81.74)
- $LSCC ... (35.16)
- $MLM ... (257.52)
- $MPWR ... (317.97)
- $NIO ... (29.40)
- $NOW ... (501.82)
- $NTRA ... (73.99)
- $NVDA ... (537.71)
- $PDD ... (98.96)
- $PINS ... (53.87)
- $PLTR ... (9.97)
- $PLUG ... (15.96)
- $PTON ... (118.44)
- $PWR ... (61.68)
- $PYPL ... (195.78)
- $ROKU ... (214.26)
- $RH ... (372.93)
- $SNAP ... (34.52)
- $STNE ... (56.57)
- $SQ ... (170.61)
- $TAN ... (70.55)
- $TMO ... (473.84)
- $TSLA ... (425.80)
- $TTD ... (597.50)
- $U ... (102.63)
- $ZG ... (97.69)
- $ZM ... (478.0)
- $ZS ... (140.51)
- Buy High and Sell Higher.
- Scale up in positions as the stock progresses higher.
- Concentrate your portfolio into the few stocks that are outperforming the market.
- Get rid of the laggards immediately and use the money to invest in stocks that are leading in your portfolio.
- Cut your losses when the stock loses -6% to -7% from your buy point.
- Harvest partial profits once the stock attains +20% to +25% gains from your buy point.
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