Wednesday just gone was a “follow through day” on the Nasdaq index. The index was well up with volume higher than the previous day. Follow through days are expected on the 4th to 12th day from a low and Wednesday was the 6th day.
Remember what a follow through day is. It is simply a point in time that says “odds favor” a rise in the market and “may” be a good time to buy. Follow through days can fail but they usually indicate a gain of unknown price and duration. Not much help you might think but remember ALL bull markets begin with a follow through day but not all follow through days lead to a bull market. As I have said before the stock market is an art not a science. All we can hope to do is find “odds favor” conditions such as now.
Remember start buying small and wait to see if your picks are successful. If they are successful then add to them and buy more stocks, don’t forget your sell stops, money management is key. Here are some interesting looking stocks that may be ready to make a move. Don’t forget to make sure that earnings are not imminent on your picks. Remember this blog site is not a newsletter that promotes stock tips or penny stocks rather the idea is to teach stock selection with low risk advice.
DAG - $9.12
FFIV - $93.86
INFA - $34.64
AZO - $217.68
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