Fresh wave of buying | stockbee


Fresh wave of buying

  • When investors are in buying mood, negative news does not deter them. 2 days of mild pause was aggressively followed by fresh wave of buying.
  • Market Monitor clearly indicates broadening of rally. Within a span of 2 weeks the stock up 25% or more in a month has zoomed from 80 to 215. Stock up 25% or more in a quarter have almost doubled.
  • This has been one of the best trading periods in last couple of months. In last 7 days since Market Monitor turned green , stocks are just flying. So you know what to do next time when Market Monitor turns green. Buying breakouts post the signal has been extremely profitable for Episodic Pivot, IBD200, Double Trouble and Virgin strategy.
  • One of the theme which has been highly profitable is China. There is abundance of stocks from China which have gone up 25% plus in few weeks in the stocks up 25% plus in few weeks. Almost all of them were signaled by the EP method. Now we are in late stage of this game . Many Chinese stocks are now reversing. Some are just one day wonder where they don't follow through.
  • A period of red hot momentum is followed by digestion phase. Market Monitor is indicating we are entering such phase now. Such high momentum phases lead to reversal in small (next 1-5 days time frame). These are part of regular corrections in market.The primary trend is still up but minor corrections possibility high.
  • For high momentum traders what it indicates need to protect open profit aggressively. New breakouts may not fly as easily as they were in early phase. Most important is protecting profit, momentum stocks correct more than market because they are high beta. It is no fun building your account up 25% plus in few weeks and then giving up bulk of that profit in few days. That is where Market Monitor helps.