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
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