Market Rally Continues, But Volume is Mixed
"From The Trading Desk" May 3, 2007: The markets were all up on mixed volume today. The NASDAQ was up .30% to a new recent high on strong volume, a good sign indeed. The Dow Industrials were up .28% to another all time high on average volume. The S&P500 closed above the 1500 mark for the first time since 2000.
EDU was up 3.26% in heavy trade. CROX was up strongly on increasing volume. VCLK which we recently sold, gapped down 7.57% today and closed below it's 50-dma on heavy volume.
"Current Market Pulse":The market is in a confirmed rally. Although things are looking good today, caution is still advised. We are at lofty short-term levels and lesser-quality names are leading the rally. I am recommending caution. Sell your weaker acting stocks. Come off margin. Buy only the best CAN SLIM stocks like the ones we suggest. Only buy stocks that are emerging out of a solid and proper basing pattern on big volume. See our "Buy" list for candidates. Always cut your losses at 7%-8% below your purchase price No Matter What.
"Market-Leaders" Moving-Up on Volume: NICE, HURN, DWSN, IGLD
"Let That Be a Lesson" Watch a LIVE video of this important lesson. click here
Some Cups Form "High" Handles - According to William J. O'Neil in his legendary stock market trading book "How To Make Money In Stocks," the cup-with-handle base is the strongest chart pattern for growth stocks to stage a big price move.
In a normal "cup-with-handle" base, the handle ideally starts to form near the high of the left side of the "cup." But sometimes the stock price moves above the old high and and the handle starts forming later. The stock may still be buyable.
Here is a chart of Interparfums Inc. (IPAR) for May 3, 2007. We see that the left side of the cup topped out at 21.77 on November 17, 2006. The stock's base has shown good accumulation and the Relative Strength line is strong.
Interparfums never formed a proper handle before it crossed the "buy point" ($21.87 or the prior high, plus ten cents). Then on April 20, 2007 IPAR blasted out of the base on huge volume, a very good sign.
The stock closed at $23.46, or 7.27% above the proper "buy point." At this point the stock was already too far extended in price to buy. Our rules tell us not to purchase stocks more than 5% past the "buy point."
Patience seems to have paid off however. The stock formed an eight day handle (more than the 1 week minimum required). There were areas of quiet trade on the 3rd, 4th, and 5th days. And the handle "drifted" down slightly which serves to "wear-out" some of the "weaker" holders.
On May 3rd, IPAR blasted out of it's high-handle on the biggest volume the entire base has seen. It closed just below it's new "buy point" of $23.63 at $23.48.
"Market-Leaders" Moving-Down on Volume: RYAAY, ANDE
"Let That Be a Lesson" Watch a LIVE video of this important lesson. click here
Some Cups Form "High" Handles - According to William J. O'Neil in his legendary stock market trading book "How To Make Money In Stocks," the cup-with-handle base is the strongest chart pattern for growth stocks to stage a big price move.
In a normal "cup-with-handle" base, the handle ideally starts to form near the high of the left side of the "cup." But sometimes the stock price moves above the old high and and the handle starts forming later. The stock may still be buyable.
Here is a chart of Interparfums Inc. (IPAR) for May 3, 2007. We see that the left side of the cup topped out at 21.77 on November 17, 2006. The stock's base has shown good accumulation and the Relative Strength line is strong.
Interparfums never formed a proper handle before it crossed the "buy point" ($21.87 or the prior high, plus ten cents). Then on April 20, 2007 IPAR blasted out of the base on huge volume, a very good sign.
The stock closed at $23.46, or 7.27% above the proper "buy point." At this point the stock was already too far extended in price to buy. Our rules tell us not to purchase stocks more than 5% past the "buy point."
Patience seems to have paid off however. The stock formed an eight day handle (more than the 1 week minimum required). There were areas of quiet trade on the 3rd, 4th, and 5th days. And the handle "drifted" down slightly which serves to "wear-out" some of the "weaker" holders.
On May 3rd, IPAR blasted out of it's high-handle on the biggest volume the entire base has seen. It closed just below it's new "buy point" of $23.63 at $23.48.
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We don't issue lots of stock-picks like the others. But the ones we do are Powerful Stocks that have the potential for gains of 50%-100%, 500% and more.
Sure, our stocks have huge earnings, showing tremendous recent strength, and are being accumulated by the top money managers on Wall St. But it's not enough just knowing their names. You have to know how to trade them. When to buy them and when to sell. Since the average high-growth stock eventually goes down over 70%, this knowledge is valuable. Sign-up today for your FREE TRIAL
Good trading is all about having solid and proven trading rules like the ones I use every day. Rules developed by the world's best traders like William J. O'Neil and Jesse Livermore. You can read more about them here:
THE TOP 12 RULES OF INVESTING You Need To Know
THE TOP 12 RULES OF INVESTING You Need To Know
Happy Trading,
Mark Gordon
GOLDENTICKER.COM
Past performance does not guarantee future results. Investing in stocks, bonds, ETFs, and mutual funds involves risk and loss of capital can occur. Consult with your financial advisor before investing in the stock market or making any investment decisions. This blog/website is solely for informational purposes and is not an offer to buy or sell or solicitation of an offer to buy or sell any security or investment product. This material is not to be construed as providing investment services in any jurisdiction where such offers or solicitation would be illegal.
Mark Gordon
GOLDENTICKER.COM
Past performance does not guarantee future results. Investing in stocks, bonds, ETFs, and mutual funds involves risk and loss of capital can occur. Consult with your financial advisor before investing in the stock market or making any investment decisions. This blog/website is solely for informational purposes and is not an offer to buy or sell or solicitation of an offer to buy or sell any security or investment product. This material is not to be construed as providing investment services in any jurisdiction where such offers or solicitation would be illegal.
