It was a good day overall for the market. Volume advanced across the board on the small gains. That is a positive sign after yesterdays follow-thru. Breadth also ended up positive after starting the day off negative.
I still do not have complete conviction that this market is going to fly, so I am keeping some cash on the sidelines. Which means I have been selling down some long term winners and buying smaller portions of new buys. I would rather not gamble at this point in time, with the market going through some moodiness.
But there were some good looking charts that came up intraday and tonight on my scans so that is reassuring that the rally could have some legs to make new highs. Speaking of new highs, they are well ahead of the daily new lows. That is also a bullish situation.
The market climbs a wall of worry, my friends. I see a lot of worried people out there that are scared of the Fed, inflation, gas, and another other thing they can think of. Stay positive and be prepared for all of lifes challenges.
The trends are all up. I can not argue with the facts of the stock market. The market right now says I want to go higher. But not too high too fast.
Until this trend changes, I remain net long with a bullish bias.
New Swing Longs: PLAY PRST HBE VIGN EZPW PANC CLWT CAMD MESA PFWD CRXL CYPB RFMD SKO AEP IRSN CMD
Longs Outperforming Market: BBSI EMKR WVCM LYTS DSTI NTES BMRN ESLR
New Swing Shorts: CENT COF BG ANPI
Shorts Outperforming Market: CNTF
Stocks On The Radar Screen: STS NMHC CERS TFSM TPC FTG JCTCF TTG VUL DW TESOF IAL AXR SYS
3 comments:
Joshua
Completing this round of questions:
In reference to TSV which I have now added to the middle window with volume, the default value for periods (days) is 27, do you use a higher (i.e. 35) or lower number (i.e. 21) for this indicator?
How many stocks??? Scanning everyday produces a considerable number of good stocks and also your "New Longs" section is pretty extensive. Inexperienced as I'm today I'm already at 26 stocks in my portfolio. Besides I find it difficult to follow many stocks, how many do you think would be a "controllable" number? Of course this number is only as a generic reference as anyone is different, but as I'm trying to learn your method, in a good market what could be the range of stocks to own in a portfolio like yours?
Finally about lower quality stocks: following IBD I try to scan most of the candidates from the various IBD lists I have recreated. Most days some of your "New Longs" do not appear in those lists. Any recommendations about where to scan for potentially good stocks that have not yet made an IBD list but could get there in the future?
I will be ready for a tutorial course from you when you are ready. In the meantime I'm collecting this questions and answers as a reference. Thanks
TSV 18 with a moving avg. of 10 days. I just want to see it move up when the breakout happens. If it moves down, I might pass on the stock.
How many stocks is up to you. What you feel comfortable with, your capital, and style.
The scan produces great charts. I think that speaks for itself! LOL. Most people would kill to have all the choices we have.
My new longs is longs. But the next morning some of them may be too far extended for a good entry or I may pass on them. I simply list the best and close to the best. I take most but not all. Because that is very hard to do. And sometimes I take them and I GET SHAKEN OUT on the day I buy it. So it is up to you to decide, once again, what you are comfortable with.
In a great market like 2003 I can hold up to 100 stocks. It is not a problem for me. I fell completely comfortable with that number. For most new people I say 5, at first.
Also about your 26 stocks. If you do not know what you are doing in the stock market and do not know when to buy or sell on your own, you should sell 21 of those. This methodology is not for newbies at first. IBD is a great start!!
All my stocks come from my PCF scans and IBD list. Only by subscribing to Investor Business Daily Premium Package can you get a list of all small stocks that have great ratings with the proper growth. There are others but I guarantee IBD service is the best and most accurate.
Tutorials are done on a per fee basis. I am always willing to tutor one on one. But that would cost a lot of money, because you would have to come to Maui. Not a bad trip though.
Thanks Josh for all the great responses and for the advise. As usual I treasure your suggestions as this is already a learning class for me. Concerning Maui is not going to happen now with one young kid and a baby just born ... but I never say never because maybe one day I will be able to take this business/vacation trip. Don't count on me for surfing though as a tennis match with you would be the max I could withstand.
Will be in touch.
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