LESSONS
September 30, 2014
Sometimes you learn little things along the way in life, and they become lessons that ring true with time. They then become so common to you, that you forget that it was an important lesson once . I remember sitting next to a 4 year old eating Yogurt and he says to me, “Why do you put blueberries in your yogurt?” I thought…” Wow, is that a learned feature? I thought everyone knew that sometimes fruit in yogurt is a bonus! I need to get this kid some strawberries!” So it seems that unknowingly, we take for granted & forget to share with others what seems like “the Little Things” , so I wanted to just share one important lesson that I have learned ( Thank You William O’Neil) , that can help traders / investors. I just got ‘schooled’ on this lesson this month!
This was the IPO GO PRO in June – Aug.
We all love GPRO . If this breaks out to new highs, do we buy? It looks a bit “EXTENDED”, no? If we own it do we sell? THATS where the lesson lies….
DO NOT SELL , unless there is a Good reason to. William O’Neil says that in his years of investing , he finds that when a stock breaks to new all time highs, it often just keeps going. Why? Likely because no one is sitting there “TRAPPED” in their positions at higher prices. No one is dying to just “Get out and break even”. so ‘buyers and momentum’ breed more’ buyers and momentum’.
So what about GO PRO? I was watching it and I missed it . I was waiting for a Break out & “Back Test” …and away it went. How much? Over 100% in a month.
Why do I mention this now? Just like the little boy asking , “Why do you have blueberries in your yogurt?” , Someone asked me , “Why would you buy that stock if its been up 11 out of 12 days in a row?” Isnt that extended? Look back at the GPRO chart. In the “BASE STAGE” – it was up just a little each day , but once it broke free, it really made its gains. Lesson learned. I also mention this to you to point out the following 2 charts. IPO’s that look strong.
I love MBLY. I drew & posted this recently and posted as a “Put this on your watchlist”. Watch for a pullback.
Here it is today
I also like the looks of TUBE – It has shown strength since it began trading, but not staright up. ( I want to see it break upward with stronger volume really)
I have been posting HPJ for a long time. It is up nicely since then and It is almost ready to beak to new highs (Not ALL TIME highs) . Earnings came out already ..it looks good.
I have also been posting about JRJC & they came out with earnings last night. I sold only 1/2 of my position going into earnings, and it is down this a.m. I may just see how things shake out.
The 50sma is below, the weekly still ok. I am playing this as it plays out. If it keeps selling down, I am out with the other half.
Please do your own Due Diligence, check earningson MBLY & TUNE, etc, are they out yet? If they come out soon, beware, right? There are a few of these out there , its good to follow them and see how they react in the mkt pullbacks and runs up.
I hope that was useful, either something new to consider or something that you were aware of to be reminded of . There are still good short term trading opportunities out there, especially after pull backs. I am still in my initial JNUG position. I hope to avoid being stopped out today, each sell off seems to get reversed or not that severe, despite the GREAT strength in the $USD. It seems that Selling is getting exhausted and I still expect a bounce (yes, that might look like a small bear flag…if I get stopped out, I will wait for a reversal and go from there). Have a plan moving forward and STAY FROSTY my friends, and best wishes to all!
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~Alex
Alex could you update some of the previous charts or even if you dont draw the charts just a few sentences on each .
OTIV, FEYE EPAM NETE etc.
Hey Gracegift
EPAM is great, but MIGHT be completing an A-B-C up , so one could take profit, but not necessary. NETE & OTIV more complex, they have just been drifting down deeper and deeper, and todays reversal “MIGHT” be a low. They re-gained their 50sma I will draw OTIV here in a minute , these have been tricky tho. Below is EPAM
And FEYE doesnt look “BAD”. 6 month chart – It had a nice run up and volume upside has been strong. It is currently at a 61.8% re-trace from that last run up and that is fine. I is not a BUY here , It needs to prove itself going fwd tho. Its below the 50sma.
longer term, it looks to be building a “Base” , also still looks healthy, but is near lows.
Alex could you update some of the previous charts or even if you dont draw the charts just a few sentences on each .
OTIV, FEYE EPAM NETE etc.
Hey Gracegift
EPAM is great, but MIGHT be completing an A-B-C up , so one could take profit, but not necessary. NETE & OTIV more complex, they have just been drifting down deeper and deeper, and todays reversal “MIGHT” be a low. They re-gained their 50sma I will draw OTIV here in a minute , these have been tricky tho. Below is EPAM
And FEYE doesnt look “BAD”. 6 month chart – It had a nice run up and volume upside has been strong. It is currently at a 61.8% re-trace from that last run up and that is fine. I is not a BUY here , It needs to prove itself going fwd tho. Its below the 50sma.
longer term, it looks to be building a “Base” , also still looks healthy, but is near lows.
Gracegift- This is OTIV, I bought it higher, but got stopped out when it did not continue to act as expected. Now MIGHT possibly be another shot at it. It needs to HOLD the reversal above the 50sma, and better to wait until it breaks above the wedge pattern. NETE is somewhat similar.
Gracegift- This is OTIV, I bought it higher, but got stopped out when it did not continue to act as expected. Now MIGHT possibly be another shot at it. It needs to HOLD the reversal above the 50sma, and better to wait until it breaks above the wedge pattern. NETE is somewhat similar.
Nice Alex on MBLY as bought yesterday in 49’s and watching TUBE…thoughts on recent IPO CYBR?
Hi Ron, CYBR is “Basically” in the same boat, but without enough “History” , its hard to tell if the recent pullback was just a normal one and now another leg up or not . (IT DOES look like that, but I cant say with any certainty under those circumstances.) . 5 days of trading …it looks like they like it , but a roll of the dice might be the same analysis as mine on that one – LOL
Nice Alex on MBLY as bought yesterday in 49’s and watching TUBE…thoughts on recent IPO CYBR?
Hi Ron, CYBR is “Basically” in the same boat, but without enough “History” , its hard to tell if the recent pullback was just a normal one and now another leg up or not . (IT DOES look like that, but I cant say with any certainty under those circumstances.) . 5 days of trading …it looks like they like it , but a roll of the dice might be the same analysis as mine on that one – LOL
thanks Alex i know you are busy
thanks Alex i know you are busy
Thanks!!!!!!
Ur Welcome!!!! ; )
Thanks!!!!!!
Ur Welcome!!!! ; )