Trading IBD Stocks

This industry Group looks to have a lot of winners in it. Might be one to keep an eye on.

Andy

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I went in early on this one but I really like the amount of Funds that are buying in. I missed FSLR and this is in the same industry group.

Andy

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RE: groups, yes that is a great way to look and I need to do it more
RE: NXT. The IBD team would say the proper early entry point was as it shot above the 50dma on volume (or 10week, about the same). Getting it near the 50dma would be ideal. Buying it here is not far from the top of that big daily move, but not ideal. It is forming a handle and they will love to buy as it is breaking the downtrend of the handle versus waiting for the official buy point. I usually try to take a 1/3 position like that if I see it happening.

Fundamental rankings very strong. EPS and Sales growth has been VERY strong, but estimates show it slowing down. Politically, I don’t think the election will matter because subsidies and credits are built in for years. If the is a red wave, they might change the laws and move money around. But that is a ways off and not worried about it for this stock at this time.

Look at the fast drop off in the group
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That is mostly for residential solar that requires low interest rates to afford. Dead money there.

Other IBD stocks reviewed in the Friday Video…
||○ 09:55 quick TA review of some of the sector funds. When the RS lines of the ETFs were good, he would say that is where you can look at the individual stocks for ideas.|
||○ 12:27: CRWD. Chart not great and Mike would not be in it if not for the great fundamentals.|
||○ 16:40 DKS, not good for a position trade, but they do have it on swing trader. When you look at the EPS and sales growth, you can see why it would not be a position trade.|
||○ 18:57 VIK: Good bounce of 21dma. Mike wanted to get back in and this was third day down. You try not get in on the first or second day down, but wait for a logical area. Really looking for a third day with upside reversal. He liked it so much for swing trader that he sold his personal position so he could added to swing trader, then he could buy it back|

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I agree Pete the 50 day would have been a prime time to get into it. I also Agree that the residential solar stocks are crap but look at FSLR.

What a strong breakout. I am hoping it comes back in because it seems to be a strong winner in the sector.

Andy

Investor psychology to be improved. It’s funny, I have really wanted to buy BROS and I am not sure why I missed 3 opportunities.

  1. When it jumped above 50dma on strong volume due to earnings report
  2. when it first almost broke on that first day it touched the buy box on good volume
  3. when it fell to 21dma after breakout but stayed above it, crawling up. I am not home in the morning, so I would have missed that big move taking it to top of buy zone on heavy volume. Maybe I should have had a buy order in. Maybe I should have bought a partial position on any of the bounces of the 21dma.

I need to be better at that. Growth rankings are stellar.
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RE: Wing: bounced of 50dma today on slight above average volume, so I added a partial position to my existing 1/2 position. Am I learning???

RE: VITL. I was in Publix yesterday and saw a dozen Vital Farms eggs for only $11.99. Guess I should look to buy the stock, their profit margin must be huge. It is just a commodity, so what is up.

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From Mark Mirveni’s book “Trade like a Stock Market Wizard”

Andy

Bird Flu. Fewer chickens, less production.

Andy

Pete,

Whether it’s wheat or eggs, very little of commodity price increases goes back to the producers (aka, the farmers). It’s the middlemen who profit the most.

That’s counter-intuitive. But check out the how poorly food stocks are doing right now, e.g., Hormel, Smucker, Tyson, ADM, etc. or those avocado companies I traded last fall.

Yes, fortunately Trader Joe’s has kept their prices very low, about $4.50 for Pasture raised hen eggs. I am suspecting they have long-term deals directly with farmers. Sometimes Publix has pasture raised hen eggs on sale for around $4.00 and they go fast.

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In MarketSurge, I have a screen for Minervini Stage2. I think I created that from some video they had with him. They also have some built-in Minervini…

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oh, here is my criteria
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Have you been using it long enough to find any signal value from it?

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RE: Minervini Screen: I have not been using it enough. Today it had 166 stocks as you see. I then created a copy with tighter criteria that reduced it to a manageable 55. I can’t find a way to show if it is near a buy zone.

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RE: NXT. broke out today on +80% vol. Finished below buy point. The astute trader with this on their watch list would have seen it breaking the downtrend in the morning and bought a position and even add later. The trader that was at Hot Yoga and then Costco and then did not check his watch list has put in an after hours order at the closing price and probably won’t get it.

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Stock charts of interest
IRM: study the initial failed breakout, but then the nice recovery. Initial breakout day was on -15% vol, following days week, then volume picked up on the bounce.

BSX: notice the steady, unrelenting climb up and to the right. Especially look at weekly. Just a case study.

DRS: from the Minervini screen. Nice breakout, then a small dip. Only 2% into the buy zone right now.

LII: Lennox, I like that it is in infrastructure and rankings are very strong. Been hanging around the 21dma below the buy point but got a huge volume pop on 5/31, and is back up today on +18% vol. Seems actionable to me.

APO. PLMR.

All the above are from my second Minervini screen, sorted by COMP rating.

Here are some I have been following as well: DO, ASML, CMG.

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Have you read his books Pete?

Andy

No, I have not read Minervini’s books, but I probably should.

#NXT I picked up a 1/3 position yesterday after hours (at closing price) It is in a cup with handle. The handle is a bit loosey goosey, but the volume was declining in handle and the breakout move had strong volume, but price did finish below pivot point. Very good IBD rankings. Very nice jump above the 50dma in the bottom of the base. I think Andy got in it a little earlier.

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Yes I did. Wanted FSLR but it needs to form a base first. But look at the fund participation in NXT. It went from 498 to 850 in one quarter. I thought that was impressive.

Andy

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#VST This has been a popular AI-Utility play and it has had a nice run. Lots of Ants indicating big institutional support. However, IBD rankings are poor. But decent estimated EPS growth coming.

I put it on my watch list because it seems to be forming a base after support near the 50dma. We’ll see what I do if a good base is formed.

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Leaderboard stock ELF Beauty (ELF) stayed in recovery mode after Monday’s upside reversal. It’s only a quarter position in Leaderboard at this point. But a position increase could be in store as ELF eyes a cup-with-handle buy point

ANET is worth watching after breaking out, then sliding a bit, finding support at 50dma and now starting to turn up. Essentially a handle added after it broke out from a cup. If the Fed makes the market happy, this could be a good buy.

ORCL reported after hours, and while earnings were not great, but they announced cloud deals with Google and Microsoft (MSFT)-backed OpenAI, which sparked a 10% rally. This took it above a buy point and I decided to take a 1/3 position. It is tough to buy after hours, but I figured it the breakout holds tomorrow it has a chance of continued moves up. The Fed may impact is as much as anything tomorrow. IBD rankings were good, but not great. This will be one of my weakest holdings and I could agree with anyone that challenges my rationale on it, which is why I post.

OLED made a good move to a breakout today, just finishing below a buy point on heavy volume. Decent IBD rankings. A chart worth reviewing.

GVA is bouncing off the 50dma after a breakout. Infrastructure play with very strong rankings. Definitely look at the chart.

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Hey Pete, Mike said he bought FSLR today. Do you understand the logic behind that? I do not see any entry point. Do you?

Also are you able to get IBDLIVE?

Andy