Super   Stocks

Professional money managers that handle hedge funds, mutual funds and pension funds are the ones responsible for the rise in the price of a stock.  When they decide to take a position in a given stock, it usually takes them several weeks of consistent buying to accumulate the total position they are trying to attain.  It's very hard for them to hide their intentions.  Once you learn to decipher the daily, weekly and monthly stock charts of the stock, it becomes very apparent how some of these stocks attain gains of 400% to 2,000% within a few years.  

2015 was the year when market was going through a consolidation period.  Our new bull market began taking a hold by June of 2016.   $QQQ   the growth stock index I monitor is +350% since that time.  Some of the big cap growth stocks that we hear about that have out performed the  $QQQ  such as, $AAPL (+700%),  $AMZN (+500%), $CMG (+400%),  $GOOGL (+400%), $MSFT (+500%)  and  $NFLX (+500%), all started their huge run and displayed some of the very common characteristics of what I consider  SUPER STOCKS.  Some of the  common traits that I have noticed studying such stocks are: 

1. They are not cheap stocks when they start their initial run.  Institutions don't buy cheap stocks since they have to buy millions of shares to accumulate their full position.
2. These stocks quite often gap up in price because of the sheer demand from all the institutions that want to accumulate them.
3. You will often notice that the stock will attain gains of +20% or more within a week or three during earnings report and consolidate these gains before making another attempt to attain a higher price.

According to IBD (Investors Business Daily) principles of investing as preached by the founder of IBD  Mr. William J O'Neil, the way to make big money in the stock market is to concentrate your portfolio to a handful of stocks and not hold more than 8 to 10 stocks with a $million portfolio.  Every week end I look over one of my stock watch list that high lights stocks that have gapped up or are showing huge spikes in volume of shares changing hands during its initial run.  

Stock  Watch  List

Here is a list of stocks that the institutions have indicated an interest in during the last several months.  Some of them rose  +20%  or more within 3 weeks and triggered the "8 Week Hold Rule".  I have indicated in parenthesis support and resistance area that the stock may retrace to or build a base to propel higher.

1. $ASO    ...   (41.74)
2. $BEAM   ... (94.60)
3. $BNTX    ... (219.94)
4. $CELH   ...  (70.66)
5. $CERE    ... (18.14)
6. $CRNC    ... (120)
7. $CROX    ... (109.39)
8. $DECK     ... (353.70)
9. $FIGS       ... (42.89)
10. $GNRC    ... (363.57) Currently have several positions average position price $319.71
11. $IT            ... (235.55)
12. $NKE        ... (146.82)
13. $NTLA      ... (92.0)
14. $SWBI      ... (23.57)
15. $TDC        ... (47.68)
16. $TTD        ... (72.53)
17. $TIGR       ... (26.20)

We are heading into the worst performing 3rd quarter of the year.  As a general rule of thumb to follow with growth stocks, its always a good idea to trim your position once the stock makes a gain of +20 to 25%.  Within 2 weeks we will embark upon the earnings reports for the 2nd quarter.  Stocks become very volatile from earnings report and its a good idea to  trim some of your holdings to avoid a nasty surprise of a gap down in price.  Don't ever let a sizable profit to turn into a loss.  You have worked very hard to attain profits in a stock and the common mistake most traders make is holding onto the full position in a stock during earnings report.

Happy Trading!

Amin