Today (4/10/13) may signal a reTurn to "CONFIRMED UPTREND" for the market.
REMEMBER: WE NEVER KNOW HOW THE MARKET WILL CLOSE UNTIL IT CLOSES!
So get your watch list tuned up. Here is a list of the highlights of good stock buying. Refer to your extensive notes for more details, or go to "How to Make Money in Stocks" for more details:
- Review financial and technical ratings to be sure they are still great (EPS, RS, SMR, Accumulation/Distribution, Group RS, minimum price - over $15, minimum volume - over 400,000 average daily volume)
- Look at the chart -
- good base (not late stage base, well-formed base) or
- add-on buy pattern,
- breaking out on 150% or higher volume (yes, IBD has increased the breakout volume recommendation back to 50% above 50-day average volume according to Jonathan Howard at the last Level 1 training in Irving),
- if already broken out, stock is within 5% of breakout.
REVIEW THE IBD SECTION LEADERS: As of last night:
- FLT (extended),
- AWAY (within a Golden Triangle buy range up to 35.79, running at an estimated 67% above its 50-day moving average),
- LNKD (within a Golden Triangle buy range BUT be CAREFUL: volume is running really low - perhaps it will catch up by end of day but, unless there is a computer delay, it seems unlikely),
- LAD (the newest addition to the sector leader list is also within a Golden Triangle buy range BUT be CAREFUL: its volume is also running really low - ditto volume catch up comment for LNKD),
- PRLB (has already broken out of an IBD flat base with ideal buy price of 49.78. Max buy price of 5% more - 52.27. VOLUME IS RUNNING AT AN ESTIMATED +164% ABOVE AVERAGE)
Proto Labs PRLB is currently the third highest volume increase of all the stocks on STOCKS ON THE MOVE list Investors.com's home page (www.investors.com ). A great place to find the big volume movers - up and down.
Here are IBD's criteria for that list:
IBD'S STOCKS ON THE MOVE LIST
Important daily list in Investor's Business Daily that highlights stocks that had the greatest percentage increase in volume above their normal past daily trading level. [above their 50-day moving average] Usually a sign that institutions are buying or selling stock. Found in the Making Money section of Investor's Business Daily [newspaper].
It can also be found on the Investors.com home page, where it's updated intraday. The criteria for a stock to make it on the list are as follows:
- Stock must trade on the Nasdaq or New York Stock Exchange.
- Stock price must be at least $20.00 ($16.00 for Nasdaq).
- Stock must have a price change of 1/2 point or more.
- 50-day Average Volume must be a minimum of 60,000 shares.
For stocks up in price only,
- the Earnings Per Share (EPS) and Relative Price Strength (RS) Ratings must each be a minimum of 70,
- Accumulation/Distribution Rating must be D+ or better and
- next year's earnings estimate must be 15% or higher from the previous year's earnings. (Stocks without earnings estimates are included.)
If you find yourself caught up in the excitement of the day, your adrenal glands are pumping like crazy and your head is swimming, I suggest you call a friend to review any trades before you place them.
No recommendations or advice is given. Just some educational ideas to start you thinking!
Wishing you "Many happy returns,"