Hello everyone, thanks for stopping by again to check out what I have to say – means a lot, as always.
So, every year I come out with a blog post listing some of my TOP trade for the full year, sort of like investments. Hard to believe this is my third year doing this post – time flies by, fast.
A little bit of background; I do not trade based off of P/Es or cash flow statements, I only use historical price data to make my decisions, which is called ‘Technical Analysis’. Below you will find the chart of the company I am looking at for a trade and then a short description of why the chart is attractive to me for a trade. Enjoy and let me know if you have any questions.
Stocks in post: $JMBA, $PLCE, $KCG, $RVBD, $FLTX, $HWAY, $LPSN, $TA
The way this will work is I will describe what I like about the stock, and where the stop loss should be in this investment. All of this will be below the chart(s).
$JMBA – The first of the stocks for 2015 that caught my eye (remember in no particular order). The reason why this one looks good to me is this: It has a long base (see first chart) and it is starting to ‘holder higher’ (consolidate in a tight range recently). The bottom chart of the two above is simply a ‘zoomed in’ version of the same chart and on this chart it shows where the stop loss should be on this investment, around $11.37.
$LPSN – Next on on the list: LPSN. I should note, all of these charts are either on the weekly or monthly timeframe, also I am looking for the same thing in all of these stocks: Long bases, showing relative strength while the price is contracting. Luckily, LPSN shows all these characteristics, and the stop loss on this stock should go where the middle line is (about $11.90).
$TA – The third, but far from the worst – $TA. I absolutely adore this chart. The base is enormous, and the risk associated with this stock is so well defined – below $9.10 and you are out, cut the losses and move on.
$HWAY – I am sure you have started to see a pattern at this point, long bases, and forming bull-flag type patterns. If this is the case, then good, because here is another one right here. Again, the risk is beautifully defined as below $14.30 (meaning you exit all your shares at this level as your analysis/trade idea was incorrect).
$FLTX – A little bit of a different pattern, but this chart still has some awesome potential. The risk is clearly defined as below 34.20, you are out. If it breaks out over the top line (drawn on chart), then this stock likely will have a killer 2015.
$RVBD – Should not come as that much of a surprise that there is another one of these long bases charts in the list of investments. I really like how this chart refuses to go down and that it has formed an extremely tight price contraction (on the monthly basis). Along with all of this, the risk (stop line) is clearly defined as to be below $17.40.
$KCG – On a relative basis, this is a pretty new issue stock. New issues can lead to some absolutely massive gains, along with this though they are also associated with a ton of risk, therefore we have to be careful with this one and respect that stop loss zone. The reason why I really like this chart is because of how well it has consolidated over the past year or so and now starting to ‘hold higher’ over the 21EMA. The stop loss for this investment is below $11.00 a share.
$PLCE – The last stock on the list for 2015 is PLCE. I’ll be honest, this is not my favorite chart, but nevertheless, the base is long and it has some potential. The stop loss for this stock is $52.50.
So, there we have. Those are all my favorite stocks for the next year. As always, if you have any questions, let me know – I know some of this is complex, but I am here to help. Hope you all have a GREAT year, I know I am looking forward to it.