Dr. Wish

Blog post: Day 56 of $QQQ short term up-trend; List of 4 stocks from my scan of recently oversold growth stocks now closing above their 21 day exponential moving average–$AVGO, $NOW, $ZTS, $IQV

@ 11:14 pm
GMI6/6
GMI-26/9
T210845%

All 4 stocks are in up-trends with 10wkavg>30wkavg and above $150. These stocks traded below their bottom 15.2 daily Bollinger Bands anytime in the last 7 days and now are above their exponential 21 day averages. Check out their daily and weekly charts. If I bought any I would sell immediately after a likely close below that moving average or the lower Bollinger Band. As an example, here is the daily chart of ZTS. Note its GLB (green line break-out) in June and the black dot signals. An alternative place for a stop would be below the low of the bounce day, around 196.96. Remember new traders, you can buy one share and only risk about $5. You have to learn how to manage your losses.

 

 

 

The GMI is at 6 (of 6). QQQ has closed above its 10 week average for 12 straight weeks. I still fear the coming month of September and remain very cautious.

Blog post: Why buying stocks over $200 works better–revisited, examples $BNTX and $GS

@ 8:01 pm
GMI6/6
GMI-23/9
T210846%

I was planning to write a post about the virtue of trading expensive stocks and then I discovered that I had done so in 2018. My 2018 post explained why I liked to buy stock stocks trading over $100. I noted that Jesse Livermore had said he was interested in number of points gained, not the percentage gained. It took me a while to appreciate his logic. I now find more success trading stocks over $200.

Stocks that can rise to $200 have attracted considerable buying and allow me more flexibility to control the trade. I therefore have added a filter to my scans for oversold bounces that now requires a current price >$ 200. If my timing is right and the stock begins to rise after being oversold, I can be looking at a possible triple digit move.  Most large point moves occur in stocks already in triple digits, see my 2018 post.

For example, look at the daily chart of BNTX.  On July 16, (designated by the first N) my scan showed BNTX to be bouncing from oversold while it was around $231. BNTX then rose to over $430. That 200 point rise gave me a lot of space to pyramid into the stock and to control my risk. The VCP pattern prior to the break-out also encouraged me to buy.

Another example is GS. After retesting its GLB (green line break-out to ATH)  in February, at around $275, GS rose into the $400s.

Note the many green and black dot buy signals throughout the move.