Vote the Cat: Serving the people not the brokers
Can a chart be as pretty as an expecting Kate Middleton?
It can, but first we need to wait for Highs to Get Low.
Buying a stock on the day of, or the day after a new 52 week high can often be a profitable momentum trade. But absent a powerful multi-day rally the stock usually pulls back from the new high touching our stop loss point in price and frustration.
The frustration only worsens when we see the stock advance to additional new highs, reminding us we picked the right trade at the wrong time. Stocks at new highs with a recent history of meeting earnings with no nasty surprises and downward spikes, usually bode well for a long term strategy as they continue up their rising trend lines. Finding them is easy; the key and hardest part is of course waiting for a new high to get low.
FISV, POL, EFX are 3 stocks (amongst many) which have performed well lately on pullbacks after a new high. The 50 day MA has proven a very good reference point for entry.
