Looking for a New Winner?
1 July 2006Okay, it’s a new quarter and time for a some new stocks to line your pockets with green stuff (cashola). First, remember that summer is tough to make money. You need the best stocks earnings wise. Stocks that have lots of earnings and value (undervalued is real good). I would look hardest at UltraValue stocks and “Best of the Best” stocks. MERX just made the end of the Q2-06 “Best of the Best” and should be considered for purchase now too. So (er) an (sr) should both be higher than the previous quarter. You should find no negative news to go against the great earnings they just announced. Earnings rank (er) and strength rank (sr) should not be 10’s. I think 10’s get sold this time of year. Cramer would say “Ring the Register”. Check a chart before you buy anything. If the stock has been in a downtrend, wait for the stock to break that downtrend line on higher volume. If it is flat or in an uptrend look for good up volume and then be prepared for a pullback to recent support. I would buy in slowly on uptrending stocks to try to get in as low as possible. Always set stops at 6-9%, whatever you are comfortable with. If you set them too close you could get knocked out too soon.
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