There was some shuffling on the Russell 3000 this weekend so some of the volume numbers are skewed. I kept track of volume of the indices on Friday and noticed throughout the day as the market headed upward, the volume percentage change kept going lower and lower, but then at the end of the day, the volume percentage numbers popped to the positive side. Therefore, the volume numbers are suspect in my opinion, but it is what it is.
Stocks to note (pending market conditions)
ALXN had a reversal to the upside. Really holding around support, around a pivot point
CRUS a niche company in the semiconductor industry. They actually supply chips to the iPhone and iPad. Acceralating bottom line growth numbers.
AMT just in a base, but huge bottom line growth and coming into play as it starts to trade more.
ALGN reversed and closed flat today. They make the invisible braces and other things too of course.
NSN (I know you cringe when you hear mortgage companies). A new issue! It's had good volume on up days, lighter volume on down days, has tremendous growth. They service mortgages and make sure everybody's ducks are in a row and take some of the middle money for their services. On a personal note, I like this company. It reminds me of the MasterCard, Visa model. A model where they get their money with little risk.
ULTA - not very exciting, but the stocks looks good. Good volume up days, good sound growth, nice relative strength
VRTX - good top and bottom line growth, big volume days have been to the upside. 95 RS, ascending 50 dma. Looks like it wants to emerge out of a long base
WWWW - great accumulation over the last 2 months. Big volume on the up days. 67% earnings growth. It only trades 736,000 shares, but it is getting to a point where institutions can start taking note of the take. It starts to become liquid enough for them to take a position in it.
SBH - Operate 4300 beauty supply stores. Stock has nice sound base, broke out and pulled into support, above ascending moving averages.
For boring stocks (low beta stocks). For those who prefer the slow lane to wealth!
COST: 1.5 year base. If it comes out, good things could happen. They are growing.
TGT: It's been a base for a long time. The longer time a stock is in a base, the further it can go when it comes out.
Before you buy a stock, you need to have a checklist. Here's the checklist gentlemen and ladies!
- Above the 50 day moving average
- Good relative strength
- Good top and good bottom growth
- Good volume patterns
- A sector that is in favor.
- Look at the past several months. See the big volume spike days. Were they up days or were they down days. If they were down days and the stock is in a base could indicate that the base will fail. If they were up days, then it means the stock is getting accumulated.
Speaking of the slow lane to wealth, when I graduated from college my father bought me a book that he insisted that I read. The name of that book was "Get Rich Slow". The book was packed full of great information. The author did make one point though...Would you rather get poor slow?