The First Monster Stock Of 2008, From A Perfect Chart Setup, Is Now Up 50% In Little Under A Month
May 14, 2008 | 2 Comments
Just a public shoutout and congratulations to everyone that recognized DGLY was a near-perfect/perfect chart setup that along with the very strong fundamentals made it a clear MONSTER STOCK. Now while we have two stocks that we have bought that were perfect when they started out, only one has remained perfect. The other one is up anywhere from 5% to 11% depending on where you bought or added but the real MONSTER STOCK that still has the perfect chart pattern is DGLY and now that DGLY is up 50% I can now post it publicly on the blog.
This is a congratulations to those that have studied ALL of my ‘Past Big Winners’ and recognized that this chart pattern MIGHT launch this type of move. This move should just be part of the early stages of a Monster Stock as it has not even been a full month since we went long (the morning of 4/17 and 4/18) and we already have a 50% gain.
To those that have already sold this stock, after I purchased it you have no one to blame but yourself. Instead of watching your stocks intraday, you might want to take a few hours out of one of your days and study EVERY single one of the chart patterns of my ‘Past Big Winners.’ More of these will show up again and others have tried to work out. Earlier this year NEU, CMP, LSR, BRKR, and ADEP have all tried to be Monster Stocks. CMP, NEU, and LSR were OK but all lost that beauty pretty quickly. ADEP and BRKR were failures.
Another Bullish Day Equals Another Great Day For Our Longs
May 14, 2008 | 1 Comment
Today was yet another day where the market did not do much but our longs crushed it. This time it was our recent solar stock purchases. This continues a very bullish pattern of where everything I buy continues to move higher. Once again, tonight there are four new longs and zero full sells. This has been a recurring theme and is a theme of any bullish market. Higher volume or not.
Even though we still have zero institutional support on the indexes, it is clear that in this stock picking market there are a lot of stocks they are accumulating. The majority are in the energy industries, obviously. It might not be easy to buy stocks correct but it sure has not been difficult knowing where to put a lot of money. The gains in two solar stocks today that I am heavily long is more proof that as long as you know how to pick the best stocks, you can destroy the stock market. Remember, all those people from weakmoney.com that were telling me to go long stocks like GS, LEH, MS. I don’t know about you but I told you then that you did NOT have to buy the exact low to make a CRAPLOAD of money in the stock market. My recent longs are proving that.
For those that still think that you have to buy the exact low, this should now prove to you that those talking heads on CNBC are just that. Talking heads.
Nasdaq Leads Impressive Day Of Gains On Slightly Higher Volume That Is STILL Well Below Average; NYSE Slowest Day Since December 27, 2007
May 13, 2008 | Leave a Comment
I don’t know what I can say about this market that has not already been said. I find it very difficult to BS about the market when there is nothing to BS about. But I will give it a shot.
I do not like seeing the IBD 100 lag the Nassy on a day of such strong gains. The other thing I do not like seeing is the impressive gains on much lower volume with the NYSE having its lowest day of volume this year. This is a clear sign the big boys have no interest in buying this market. However, as you can tell via my recent longs, there are a few stocks they are still interested in buying. That is why this is still a stock pickers market and thank GOD I can pick them!
Until volume returns to this market, there is no way I am going to let go of 25-33% of my cash. I am going to continue to keep that on the sidelines while I wait for another perfect long setup like the stock that had a good day today. If another chart can show up like that, I would be more than happy to drop that cash position. But still with the low volume, it is hard to get 400% invested on margin.
Another Perfect Day For Our Longs, Especially Our “PERFECT” Long; Never Short A Dull Market
May 12, 2008 | Leave a Comment
So far things are looking good and unless we close at the LOD and wipe out all of the gains I will be very happy. My charts continue to look well as some of my largest positions (9 of them) are up HUGE today making today a great day after two days in the country/jungle. what a great way to start the week. The only thing I will be watching closely is the close and volume. I want volume higher by the EOD and I want us to close strong or if not strong to make it a perfect day, at least not at the LOD.
Also another lesson of NEVER chasing is today in GENC. I have been taking profits on the way up and if you have been following all my sells in the forums you will see that I was already out of 40% of it before today’s decline. Even after the swoon today, we still have a gain in it. Also, do not sell it intraday. The chances are much higher with it being down this much that it will have a strong rally before the EOD. Even if it doesn’t, it doesn’t matter, the stock is a full sell and we still walk away with a profit on the full 100% with me already being out of nearly-half when the stock was between a30% and 60% gain.
Our leaders are doing well and remember if you own a stock up 20% or more in less than two weeks (which we have had a few quick monsters), you need to hold them at LEAST eight weeks.
Leading Stocks Crush The General Market This Week As IBD 100 Soars 2.2% While The NYSE Fell 1.3%
May 12, 2008 | Leave a Comment
Who am I kidding I can not possibly pen a piece this weekend after that much driving in a car there and back and a night of rain and wind that thrashed our tent around making it a hellish night of sleep.
Basically, you are reading the writings of a man who has had six hours of sleep since Friday and there is no way anything that comes out of my mouth can possibly make any sense. However, as soon as I got home, I noticed a horrible trade made by a subscriber in the platinum chat room and also noticed he placed YET ANOTHER hard stop on the books after a whole one hour plus conversation this week about not doing this. What followed was something from the heart and something I was very serious about. I only hope the person that this is about realizes how important it is that he change immediately the way he trades or else the guy will be chasing mediocre results for his entire life. Considering that is this subscribers passion, it doesn’t bode well for a happy fulfilled life when you constantly set hard stops on the books on positions we are trying to hold for weeks, months, and years.
If you are at least a gold subscriber you must go here and read this lesson. If anyone reading this is using hard stops, have set hard stops, seen them get hit, and then watch your stock run and run and run and run, this is for you:
The perils of hard stops on the books and why I have not had a hard stop since 1999.
Silver, Gold, And Platinum Subscriber Areas Fully Updated; Commentary Will Be Updated By Monday Morning
May 10, 2008 | 1 Comment
Well, dang it. I do/did not have enough time to do the commentary as it is now midnight and we have to wake up at 4am and drive all the way out there to make the regatta check-in, in Hana. I will be back Sunday night and will be able to pen a full stock market commentary.
If you are a silver, gold, or platinum subscriber, you have the fortune of having the longs, shorts, and forums fully updated for your weekend pleasure. I went a little long on the opening analysis for longs and shorts so you know what I am currently thinking about this market and what stocks I am watching or taking positions in and why.
I hope you all have a great weekend. I hope I have a great weekend. But how can you go to Hana and have a bad time? It is impossible.
Going To Hana (The Jungle) This Weekend
May 9, 2008 | 1 Comment
JUST TO GIVE YOU ALL A HEAD’S UP. I AM DRIVING TO HANA TONIGHT AND WILL BE THERE ALL WEEKEND LONG. I WILL NOT BE BACK TILL SUNDAY NIGHT. IF I DO NOT GET THE COMMENTARY DONE TONIGHT, IT WILL BE DONE SUNDAY NIGHT BEFORE MONDAY MORNING.
Another Brand New CANSLIM Long Up 10% The First Day
May 9, 2008 | Leave a Comment
This is why I find it hard to get too bearish. Recently, even though they have a tough time making a smooth ride out of it, most of my new longs of CANSLIM quality are flying right off the bat. This is very bullish action but at the same time seeing so many close to being near-perfect charts being turned into mediocre charts.
It is clearly a stock pickers market. Another day, another monster return. I hope this can continue. This market might be choppy but the recent new longs have been doing very well.
Hard to get too bearish when things are working out pretty OK.
How Much Longer Will The Good Time (The Rally Has Not Been Long Enough, To Be “Times”) Last?
May 9, 2008 | 1 Comment
I am not for sure about that answer but I have to admit the charts overall still look like they are trying to make a bottom. But like I have continuously warned about: if volume does not come back into this market on the upside, we are in danger of reversing some decent base building and that will probably discourage a lot of market participants which could open the door to more selling.
However, there is nothing wrong with being prepared, but until the market actually cracks, I will have to go with the short-term to intermediate term uptrend and ride the wave for however long it wants to last. The sad thing is that the way some of my stocks that looked great just a couple of weeks ago now look only average to somewhat above average. This is OK but in a brand new bull market, we would normally have 5-6 near-perfect to perfect charts right now. Instead I have one. One chart STILL looks “hot” out of about 4 or 5 that were starting to. Basically this has been the theme ever since April 2006 but thank God some gems here and there have still been able to shine through the rough.
It has been a long time since a WHOLE BUNCH of stocks setup in proper to perfect bases and then broke out and ran away. The truth is, I am only finding a few gems here and there and usually when I find a gem it fails. However, for every 3 or 4 that fail and that we can cut quickly thus saving ourselves a LOT of pain, we will always have one that can run. They might not be of high quality like AFSI but as long as 1 or 2 are around I guess that is good enough. But the further we go along without these near-perfect to perfect charts setting up or even holding on the more problems we will run into in the future.
Distribution Day Hits The Indexes As Stocks Selloff Erasing Some Of The Hard Fought Gains Made The Past Four Days
May 8, 2008 | Leave a Comment
There is no other way to spin today’s action other than it was downright ugly. However, after going over my personal holdings and seeing how few stocks needed to be sold and how few actually fell on higher volume, it became clear to me that I am going to have to see more selling to confirm that this short uptrend is dead. The way my leading stocks acted today and seeing how some of the stocks that I purchased large positions in actually made gains today, it just seems smart that it would be wise to not panic here and lose our positions in our leading stocks. This kind of selling is not good but it is normal to see this during uptrends. You can review any uptrend you want and you will see they all have one, two, or three distro days along the way.
Today’s distribution day did come with most indexes losing 1.8% which was a nice chunk lower but the NYSE’s volume was below the 50 day volume average for the 33rd consecutive day. The Nasdaq’s volume was higher than the day before and above the 50 DVA but the volume on the index was still lower than 4/24 and 5/1’s rally on higher volume. The selling was heavy but nothing that smells of SERIOUS distribution. I will need to see further confirmation before I sell stocks that are still holding support. Especially when the majority show either intraday tails or low volume on the selling.
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Recent Posts
- Late Day Selloff On Lower Volume Shows The Bulls Are Not Ready To Run; A Test Of The Lows Might Be Needed To Get A Real Bounce
- Nice Rally Today Too Bad It Was On Below Average Volume
- Stocks Rally On Mixed Volume As Yet Another Day Of Insane Volatility Comes To An End
- If You Do Not Give Up, You Will Create Great Financial Wealth
- Stocks Resume Selloff As Distribution Day Rattles Investors Who Bought Last Weeks LAME Rally
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