Thanks Pudding and Buynhold. All the information that both of you provide here is really helpful for folks like me who are starting with the technical analysis. Have you guys looked at GRAB and your thoughts on GRAB? Thanks.
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Hey Growth it hasn’t come up on my screens because I screen for stocks with a price of 10 dollars or higher. It isn’t growing Revenue very fast only 16 percent but it has a nice market cap of 20 billion and has nice liquidity also(Plenty of volume). It EPS rating in IBD is only 70 I would want that at least at 80 but it does look like the funds are accumulating it because the number of funds is rising. I do like that it is in stage 2 and might do well but personally I would want something growing Revenue faster.
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$SPOT was very interesting today. Huge volume, but only up 1.33% and volume picked up significantly during the last hour as is moved up. If this had finished flat, IBD would have called it a churning day and I would have been worried, but this seems ok
Here is 5 minute chart
I will update if they mention it in video or articles.
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Growth…I have to agree with Andy, I stay away from single digit stocks. One reason is that institutions often are not allowed to buy them, so you can’t get the elephants pulling you up by their bootstraps. The other is, there is a reason they are so cheap, something is usually wrong. Sure, you hear life changing stories every now and then, but rare. For instance, CVNA was at $4 in Dec 2022, but at $258 now. Everyone wants that to happen.
TA-wise, the breakout on this worked great. You could have bought it off an alert of when it was getting near or just breaking above the pivot. That held and you got the rest of the good action you see now. But now? Too late, risk too high for a standard position trade.
If you believe this is 1999, and it is a Santa Clause Rally + Trump Rally + Melt-up, well, then anything might work.
Saying it’s too late leaves me open to the charge of hypocrisy. The chart looks like some other high-fliers we have been chasing. Maybe I would have said to see if it finds support at $5, then buy it on bounce with a stop a little below $5. But I won’t. Andy is right.
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Thanks you both of you for the detailed analysis and your thought process. Much appreciated.
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Your welcome Growth. I assume you are looking for Growth stocks? If so look for stocks growing Revenue and earnings at least 20% each. The more of each of those the more it will grow. We all are trying to find the best of the best in that genre and keeping in them as long as we can. You can weigh your portfolio down with stocks that are mediocre and that will hold your compounding down. Also watch the downside(risk) that is what will really hurt your portfolio.
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Step look at that. On the daily chart it comes down and touches the 50 sma and pops right back up. A beautiful staircase.
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I was stopped out of INOD with a 16 percent loss on 11/27. I wanted to give this stock room to breathe and it still came down and bit me. I set my stop at $40 at it went down to $36.51. It is still forming the Flag on the HTF I think I just bought it to high. I expected it to break out and it went back into the flag.
I also was stopped out of Sezl. This one was essentially a break even. I had moved my stop up and was stopped out at .07% above my buy point. It to is in the flag portion of it’s HTF. I am obviously buying these to high thinking they will move higher when they just sank back deeper into the flag. I need to think how I am going to handle these but I am not sure Thanksgiving week, with the low volume. Is the correct way to learn.
Anyway I still like both of these but need to find a way back in.
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Andy, you can buy right and still be wrong
I would say that if you bought SEZL breaking above the high of the pole, then it was one correct way. If you were looking for an earlier by when it broke the downtrend, I am not sure that was one obvious place.
For INOD, I have my alerts set as it nears $49.72. If it forms a down trend with 3 high points (just 2 now), then IBD folks would say that is an early buy opportunity.
I had a couple buy-stops set for today: DAVE and SNOW. SNOW just missed triggering at my magenta dashed line. Probably good since volume was weak.
DAVE buy-stop at $95.30 to catch the breakout and that worked. And vol was +29% above avg. You can see I first bought DAVE Wednesday as it moved above the lower magenta dashed line of the previous high.
Later I bought CRDO which looked like a good breakout, but after I bought it, it faded into the close.
Not sure I could justify the buy to the IBD team, but it was breaking above a consolidation high and you might argue it was a baby cup with handle.
EDIT: Also, I have added to SHOP in my core MF positions recently.
because the weekly makes it look like a short stroke that is breaking out now. And yes, the jump is out of a proper base and the vol in week 2 is low. Did I already post this? Hmm.
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It has good IBD rankings, so what is your buy point. I see 3 places where you might start building a position, a little bit at each one. A nice bounce of the 21dma and above one would be a nice opportunity.
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Excellent. Just bought DAVE in my personal portfolio, and liked the SEZL action today. Another one doing well, sort of speculative is RKLB. But my biggest gains are again coming from NVDA, APP, FOUR and AMZN because of the position sizes they’ve grown into.
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HIMS has not only roared back from the 30% decline after the Amazon news came out, it’s now trading near all time highs. It was below $20 at the lows just 2 weeks ago, now trading at $32. All the people who said to ignore the Amazon news and buy were right. I think this stock can be bought on any news-based dips, but it’s super-volatile.
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HIMS looks way too hard to trade for me. It has big swings and if I wanted to put in a stop-loss, it seems like it would trigger a lot. I have AMSC and it is a big swinger too.
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A follow up. DAVE has pretty strong IBD rankings. RS is 99! It has a 9/9 William O’Neil screening score (which is a common factor with many big winners). Fund ownership is low, but steadily growing. If a lot more fund keep buying, they are push the stock up for us. That is a main tenent of CANSLIM/IBD investing - get in before the big boys stop buying what they want and need. After this big earnings gap, the fund count should be higher next Q. 18% management ownership, which is pretty good.
Oh, and the Chaikin Money Flow Guage has it as “Very Bullish”, nice to have that be a confirmation.
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Some items Webby mentioned in the Friday Video
○ Sector SPDR review
○ XLRE looks good and Mike has noticed that the screens he uses are starting to pick up REITs, which they typically don’t trade.
○ Lots of strength in XLU, look there
○ ARKF Mike trades ARK funds to get a more broad exposure to “the heat” with less single stock risk. These are the ones to use in “this phase”, but ARKF is starting to look tired. Go through those funds and look at the holdings in MarketSurge.
○ XLF is a little slower, but good to balance out portfolio.
○ RSP is “probably the best looking chart out there”. If you are too light in the market, this is a good way to get in or start averaging in.
○ Mike likes PAVE, slow and pokey, but keeps moving up. Also XLI
○ Mike is starting to see oil stocks in his screens over the last month
○ NVDA: Using his weekly RS MA lines, Mike was starting to back away from NVDA. If the short MA had fallen below the RS line, it would have been and “the Grateful Dead” territory, which means sell to him. However, Wednesday it fell below 50dma, but closed slightly above, then Friday, the low stayed above the 50dma and “that’s the kind of action you want to see around a 50dma”, so now he is trading it again and using Wednesday’s low as his exit. But if we start going up and can retake the labeled high of 144.42, he will be adding to it. If it goes through $150, he will be adding to it more. This is one thing Bill taught the team and he got it from Jesse Livermore. This is pyramiding, putting good money after good money.
For down weeks, Bill taught the team to look at the weekly range and closing percentage. If a stock finished at 40% of the range or higher, Bill looked at that as a sign of strength. NVDA closed at 61%.
○ ALAB: Mike has been trading this too. He notes it is hard if you were not in it before the gap up. It looks like it might be forming an ascending base (3 bases right on top of each other.) If it does, the breakout from the third can often create a good run. But if it comes in underneath this week’s low, then he will be backing off.
○ SHOP: showing normal and natural action after a gap up of this nature. Actually “Picture Perfect”. Wishes he had put it on swing trader Friday, that was a mistake. Expect it to move up from here. But it has not been a good stock for a while. Was a great leader that fell apart. Very for like this will become a leader again.
○ DECK: just another signal that retail is strong.
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$ALAB is having a good day and good run. In a recent video, Webby proposes that it might be in the process of setting up a rare ascending base, which is 3 similar bases on top of each other with the third being more shallow than the first two. Time will tell on this one, but it is breaking above highs today. I was tempted to buy it to add to my position, but I am going to wait. May change my mind at end of day 
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Just sold some $IWM to fund my 1/2 position buy of $ROKU. I will go ahead and criticize myself so you don’t have to. The IBD rankings are poor! RS is weak! Fund ownership is declining. I am clearly buying this because it is “junk” breaking out and I think it is 1999 and this will work through the end of the year. Bad boy!
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Weren’t you the one saying something about FOMO?
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Sold my App shares acquired on 11/18 for 24.87 % return. Moved my stop up on the rest of the shares. Looking to acquire Step and Sezl.
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Andy, look a RDDT, GEO, . INOD may be about to break above downward trendline.
Longer term watch: PSTG, RKLB
Are you thinking STEP held at the 50dma and today was a setup day and you will buy on strength tomorrow?
I bought SNOW on the breakout.
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