Today is a good example of how important it is to work off of a strong list of stocks. Yesterday the S&P 500 had the best percentage gain it has had in a number of years, posting a 2.92% gain. While that's a great gain for the average stock today, it's not so hot when compared to my focus list; 87 of the 100 stocks on the list posted a 3% gain or higher. In fact, 47 out of 100 posted gains of 5% or more.
Trading from a list that beats the market greatly increases your odds of beating the market. That's why I spend so much time scrutinizing my watchlists. You've heard me say many times that I am not a stickler for precise entries and exits. However, I am obsessive about the stocks I trade.
Here are yesterday's top 25 performers from my focus list:
10 comments:
Morning Trade Update: I bought MT at $71.48 and BCSI at $85.53. I tried my best not to chase this morning, and both of these momentum stocks seemed reasonable.
That sudden reversal on BCSI looks strange. Warrants close monitoring and a tight stop.
Love GRMN - I should have reversed yesterday and gone long... shoulda, coulda, woulda...
TC
what software is the screen shot?
I'm not sure what's going on with BCSI. I haven't heard anything. My stop is in the $81-82 range.
jerry,
Telechart.
Too early to tell, but BCSI could be working on some sort of a double top - volume on the most recent rally to the top is markedly lower than the one in Aug.
Also, this kind of a divergence with the overall market action is rarely a good sign for the longs.
I think your stop here is a good one. I have an order to go short if it dips below 83.2.
TC
Thanks for your great postings!
Can you please tell me, where I can find informations how you build your watchlists ?
Hans
Hans,
I've posted about it before and have created videos that detail some of what I do. I'll have to organize the site better to make important posts easier to find.
I'll probably post about building watchlists this weekend.
I am really looking forward to your weekend posting !
Hans
I think I have about 90% of the same stocks on my watchlist (and like you I spend a TON of time on them), however, my challenge is always the entry/exit!
What tips can you give on the best way to approach this?
With high beta stocks I am always nervous of a nasty reversal...we've seen a few lately.
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