New Dow Breakout – TRLG BKE MSM TIBX

Dow breaks out to a new high on volume as the uptrend continues. This gives us reason to add to our positions and even continue to take on more new positions. Readers paying attention to money management rules are only using profits to start new positions so any small losses in these positions will come from profits already made.  Remember the strategy has to be risking the house money on new positions rather than your own money. As long as we risk profits we are never in a position to be concerned about losses. Tight stops on new purchases will take a small part of those profits if you are stopped out but if successful the new positions will only add to profits given you an even bigger buffer for new positions.  The chart below shows the action as discussed courtesy of www.bigcharts.com

The pessimists amongst us will follow the bad news and give a hundred reasons not to invest. We only look at price and volume. Remember markets bottom when news is dire and top when news is fantastic. That’s the way of the market since is a forward looking model. Review the what, when and how I have mentioned many times in the past and continue investing as long as the market tells us to.

Here are a few stocks performing well and looking ready to move higher if the stock market holds up. Make sure as always that earnings are not imminent for any new purchases. 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. You can also catch me on Twitter for more regular updates and YouTube for some educational videos. See links at upper left.

TRLG – $26.6

BKE – $44.34

MSM – $71.63

TIBX – $29.77

What, When and How Revisited – ISRG BBBY DMND MERC

The up trend we are seeing continues giving us opportunities to buy. It could end tomorrow, it could end next month, we don’t know and neither does anybody else. All you can do is buy the up trends of a stock market and protect against loss.  I think it’s a good idea to do a quick review of what to buy, when to buy and how to buy again.

What to buy :- Maintain a list of stocks currently under consolidation (sideways action), close to new highs with great earnings and revenues. Such stocks being close to new highs have resisted any downward pressure and are now consolidating recent gains before their next move up.

When to buy :- As these stocks start moving out of their consolidation phase preferably on large volume it is time to consider buying such stocks. This means the recent gains have been fully consolidated and digested and the market is now ready to move these stocks higher again.

How to buy :- Start with a very small purchase that won’t keep you awake it night just in case the breakout fails. As these stocks move up you can continue adding to them. Also remember that previous purchases from earlier breakouts you are already adding to on a regular basis.

Here are a few stocks performing well and looking ready to move higher if the stock market holds up. Make sure as always that earnings are not imminent for any new purchases. 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. You can also catch me on Twitter for more regular updates and YouTube for some educational videos. See links at upper left.

ISRG – $367.67

BBBY – $53.82

DMND – $61.61

MERC – $14.62

Follow Through Day – TDSC SWI LULU CTCT

March 24th was a weak “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 4^th to 12^th day from a low and 24^th was within that criteria. It was weak but valid so we have to honor it and act since it presents an odds favor chance of making money in stocks.

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 and as always money management is key.

Here are a few stocks performing well and looking ready to move higher if the stock market holds up. Make sure as always that earnings are not imminent for any new purchases. 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. You can also catch me on Twitter for more regular updates and YouTube for some educational videos. See links at upper left.

TDSC - $55.05

SWI - $24.13

LULU - $89.13

CTCT - $35.37