1. Look for stocks that haven’t really participated in the bear massacre, for they will be my next vehicles to trade.
This is what prompted me to take WDAY, SINA, CRM and SHLD recently. So far, they’re turning out just fine.
Here are the stocks I’ve found today that meet that criteria: LULU, GMCR, ROVI, RBCN, SOHU, BYD, RKUS.
I applied my own personal visual filter in looking for stocks that haven’t done much today. So in essence, these picks are stocks at reference points that will attract buyers up from here. This is all part of how I anticipate strong moves in stocks.
It’s also important to note that after strong moves like we’ve seen today, the market usually follows up with an inside, or consolidation day – which is by far my favorite day to trade. In this case, the market situation and stock ideas should line up perfectly.
I will be buying a few of these stocks today. Will keep you posted.
OA
Next step will be high short interest stocks later this afternoon.
Comments »