After the sharp rise off the recent "V" bottom, this Fed induced market is more than due for some type of a pullback, or at least some sideways consolidation type action.
That said, leading stocks like DDD and PRLB continue to set up in tight consolidations and look to go higher. So despite the elevated level of the general indices, individual names are constructive.
As mentioned in the last post, don't chase extended breakouts in this environment. If you miss a proper buy point, just move on as other entry points will develop. As Wm. J. O'Neil has said in his books, "buying right makes selling so much easier." How true.
And definitely don't be on significant margin at this point; play smaller and try to hit singles and doubles. Once a market pullback occurs, better opportunities to be more aggressive should develop.
Here are some charts that have my attention. Take the initial 8-10% move on a portion of your position, then trail the rest with a stop. Don't be a hog.
CHCI is an interesting setup. The Reston, VA based company builds a mix of single family homes, townhomes, condos, and apartment buildings.
The 1st quarter earnings release back in May was very encouraging as sales were up dramatically, and management raised their full year sales expectations, also announcing they expect to be profitable for the full year.
For those interested, here's a link to that report.
It has a high short position of 19% of the float, and the stock has been trading in an increasingly tight range for the last 9 weeks. A move over $3 could send the stock higher.
Charts shown in this post: CHCI, AUMN, XIN, USCR, FURX
ALWAYS use stops to protect your account from big losses.
Click on charts to enlarge view:
That said, leading stocks like DDD and PRLB continue to set up in tight consolidations and look to go higher. So despite the elevated level of the general indices, individual names are constructive.
As mentioned in the last post, don't chase extended breakouts in this environment. If you miss a proper buy point, just move on as other entry points will develop. As Wm. J. O'Neil has said in his books, "buying right makes selling so much easier." How true.
And definitely don't be on significant margin at this point; play smaller and try to hit singles and doubles. Once a market pullback occurs, better opportunities to be more aggressive should develop.
Here are some charts that have my attention. Take the initial 8-10% move on a portion of your position, then trail the rest with a stop. Don't be a hog.
CHCI is an interesting setup. The Reston, VA based company builds a mix of single family homes, townhomes, condos, and apartment buildings.
The 1st quarter earnings release back in May was very encouraging as sales were up dramatically, and management raised their full year sales expectations, also announcing they expect to be profitable for the full year.
For those interested, here's a link to that report.
It has a high short position of 19% of the float, and the stock has been trading in an increasingly tight range for the last 9 weeks. A move over $3 could send the stock higher.
Charts shown in this post: CHCI, AUMN, XIN, USCR, FURX
ALWAYS use stops to protect your account from big losses.
Click on charts to enlarge view:
No comments:
Post a Comment