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“The stocks that go up the most from where you bought them are your flowers; those that are down from where you bought them are your weeds. If weeds appear, don’t hesitate to reach for the trowel”- WILLIAM J O’NEIL
Major indexes were bouncing back from the previous weeks support after last week's decline. The Nasdaq composite ended Friday flat but turned in a weekly rise of 3.1%. It has now bounced off from its 21-day exponential moving average. The tech-heavy index is slately negative so far in January.
I’m still optimistic about upside movement due to the fact that last weeks pullback was made on low volume which implies low selling,also we still have 3 nasadaq and 4 S&P 500 Distribution days.
MOVING AVERAGES USED
REDLINE = 50 DAY MOVING AVERAGE
GREENLINE = 10 DAY MOVING AVERAGE
PINKLINE = 21 DAY MOVING AVERAGE
The S&P 500 booked a daily gain of 0.1% on friday and rose 2% for the week. It rebounded above its short-term moving averages and support of the previous weeks. It is now slightly ahead for 2024
I USUALLY SELL LAGGING STOCKS AND ADD TO THE BEST MOVERS (LEADERS)
HERE ARE LIST OF STOCKS WHICH I HAVE BOUGHT OR I’M LOOKING TO BUY ONTO THIS WEEK.
MY STOCK PERFORMANCE RATING IS A+,A,B AND C WITH A+- BEING THE TOP AND C-BEING NORMAL.
MOVING AVERAGE LINES USED
REDLINE = 50 DAY MOVING AVERAGE
GREENLINE = 10 DAY MOVING AVERAGE
PINKLINE = 21 DAY MOVING AVERAG
BLACK LINE = 200 DAY MOVING AVERAGE
RATING: A I dont have a position on this stock,but i’m looking forwad into buying when it will be cross the buying point shown above,,The reason for buying is it has good fundantals as it highlited on the chart plus good technical actions (building good bases).
RATING: B I have a position on this stock which i bought last wednesday after crossing above the 21 -moving average line. so far the stock is acting well and has good fundamentals as it has highlighted with red lines Positive future estimate can the another reason for the performance of the stock.
RATING: A I do have a position on this, bought when the stock moved past a buying point on volume,the reson i bought the stock is because it has best fundamentals such as EPS and sales .Also the stock has huge prior move which means investors has more faith on the company thats why they continue to put more money on it.
RATING: B I do have a small position on this and reason its a small position its because of low volume during a breakingout day ,we usually expect the volume to be above average the day the stock move past buying point. it has good fundamentals but lagging relative strength ,will continue to monitor the movement of this stock.
RATING: B I do have a position on this company which i established on thursday,the reason i bought is because it has very good fundamentals such as triple digit EPS and william O’neil top fund (right side ‘‘IBD mutual fund index ownership’’) are buying more shares which means they know the company is worth buying according to their research.
RATING: A I do have a position i started when it moved above the redline,the company have good fundamentals including heavily investing in AI technology.its now most valued company in the world with a lot of reserve cash for investing and buying any companies.its worth paying attention to.
RATING: A I started a position on this on monday lastweek,the reason i bought this stock is it has very good fundamentals eg 241% future earning estimate ,triple digit EPS and sales.Also its has good techinical action such huge prior move which shows the accumulation of shares by institution investors.the volume was way above average when it moved above the buying point.
RATING: A I started a small position on tuesday last wednesday, lastweek, after moving above the wedge/pennant.the reason for buying stock is it has good previous move technicaly and also their whole industry group ( software security ) is strong group all stock moving up eg CRWD and ZS .Also i noticed the stock made a pullback with very low volume which is characteristics of true market leader.
RATING: A I do have a position on this and added after moved above channel line on wednesday ,the company have good both technical and fundamentals items.the triple digit EPS and positive earning estimate can be the reason for the better performance of this company.
TML FIVE TRADING RULES
1. Buy the stock as it break above base or trendline on above average volume
2. Sell -4% to 7% from buy point,intra-day
3. Take gains 20-30% above buying point
4. Use trailing stoploss to protect your gains
5. If you have three straight failure -4% to 7% ,stop buying and do postanalysis
THANK YOU FOR YOUR TIME
NB;ALL GRAPH/CHART IS FROM MARKETSMITH APP WHICH IS IBD TRADEMARK. You can join here : https://bit.ly/3nRmIzu
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