| Fresh Picks for Fall |
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| November 6, 2007 |
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New Buys
You’ve got to have a method when buying, holding and selling stocks. At Trending123, I aim to keep stocks that have the highest to run.
We don’t simply hold stocks in our portfolio that we’re flat, even, down or up a little bit on. The Trending123 philosophy is if the downside risk becomes greater than the upside potential, than the stock is not worth your time. And that’s when you want to sell the stock. And you want to buy a stock when it is clear that it has the least room to fall and the highest upside potential.
Two stocks that fit that mold — that I just recommended to my subscribers yesterday — are:
Stock #1: FLIR Systems, Inc. (FLIR) designs, manufactures, and markets thermal imaging and infrared camera systems in the United States and internationally.
- Looking at the monthly chart, it’s clearly on a monster move upwards with no bearish divergence in sight. This is one of those stocks that is parabolic and therefore you are able to make some fast money with it. Do take advantage! Get in on FLIR under $75 and hang on for a quick ride to our target of $100.
Stock #2: My second newest recommended stock provides electronic design automation software products and related services. The company’s products comprise a digital integrated solution for the chip development cycle, from initial design through physical implementation.
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Stop filling up at the pump! Don’t turn on the heat this winter!
Or maybe not. It would be a definite life change to stop filling up at your local gas station not to mention forgoing heat as winter rolls in! So I’m not really suggesting you do either of those things. But you could save (possibly even more) money by adhering to the following: think twice before you consider keeping or adding any oil stocks to your portfolio.
Until something better comes along, oil is a staple in our daily lives. Oil stocks, on the other hand, are not worth a darn. There have certainly been times when owning oil stocks has been lucrative—but this isn’t one of them! Oil stocks are bad news. They are headed down and will surely take you (and your money) with them.
Why are oil stocks going down?
We can blame it on negative outflow, bearish divergence and falling prices (gas prices are soaring but crude supplies continue to drop). The bottom line is that there are more sellers than buyers. When big brokerage firms like Goldman Sachs are selling these stocks, you better believe you should follow suit. Only a self-destructive trader would stay invested in commodity stocks. Read my lips—or abide by my typed words—each and everyday the market is open is a good day to get out of anything commodity related!
Remember ladies and gents…the more stocks we release, the more room we have for new and BETTER buys.
And this is what we call the circle of (trading) life at Trending123! Recently our subscribers have been enjoying the plentiful bounty we’ve accumulated from several stocks we’ve sold for profits. Now it’s time for you to get involved as we load up on the newest batch of stocks primed for new profits yet to be made!
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Knowledge=Power=Profits
Remember that a good trader is disciplined and always plans their trades. A failure to plan is a plan for failure!
Do something simple today. Go buy yourself a notebook. Entitle it “My Stock Journal,” or something equally obvious. Then write down the following questions:
- Why did you buy a stock?
- Did you have any issues with holding the stock as you waited for it to reach price target?
- Why did you exit the stock?
- Did you make a profit or suffer a loss? By how much?
Answering these questions each and every time you buy a stock enables you to identify your trading strengths and weaknesses.
After all, if you don’t know what you’re doing right, you can’t develop the skills you already have. And if you don’t know what you’re doing wrong, you could end up blaming “bad luck” instead of correcting bad habits.
Knowledge is power—even better—knowledge is profits!
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Stocks are going through a rough and tumble time right now. The better equipped you are to handle the rough spots, the better, especially since the market is almost never tame!
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Bullish and Bearish Divergence
If divergence means “a discrepancy; a moving apart,” what do bullish and bearish divergence mean? We use these terms in technical analysis to describe the discrepancy between the trends in an indicator and the actual security price. Bullish divergence is when the indicator is moving higher while the price is moving lower. Bearish divergence is when the indicator is moving lower while the price is moving higher. This principle can be applied to many indicators, such as the MACD or PPO.
Right now, as I said, we’re seeing bearish divergence in the MACD for the OIH (Oil Service Holders). That means the MACD is moving lower while the price moves higher. This kind of bearish divergence often foreshadows a sell-off. (The opposite would be true of bullish divergence—that could foreshadow a rally.) Considering there’s a 95% chance that a security in a Rising Wedge pattern like that of the OIH will retrace all the way to the bottom of the wedge, wouldn’t you rather play it safe? Sell oil now, and let me find you the stocks with real profit potential at Trending123.
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Log on to www.trending123.com to access tools in our “Trader’s Toolbox,” watch my latest video alerts, check out the hottest stocks and learn more about how I can help you no matter what time of year—and no matter how the market is performing.
Sincerely,
John Lansing
Trending123
P.S. Why Trending123? Every trader wants to know 3 things about any tradable security: 1) direction, 2) speed, and 3) distance. Trending123 scans the chart patterns of over 16,000 financial instruments every day and analyzes the results for you. That’s right—we do the work—so you can collect the profits! Start collecting now!
P.P.S. Profits like 26.31% in 1 month for Garmin, 27.20% in 6 weeks for Berry Petroleum and 39.33% in 30 days for Air T, Inc are just a sampling of what you can expect from Trending123. Bigger profits are possible too—like our trade in Phazer Corp — a 79.41% winner, which jumped more than 20% in just one day! So cruise around our site and then join our gold member service…at a super-low introductory price!
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