Daily Market Snapshot 04 27 2012

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Daily Market Snapshot

Stocks are in rally mode

 

Market Direction Model

Green = Buy
Yellow = Nuetral
Red = Sell

Trendline Analysis

Trend reversal to the upside. Bottom of the Trend Channel is a good buy point.

The Bulls have taken control. I have now re-deployed 75% + of our available cash in all GWM Model Portfolios. Our Market Direction Model is confirming the upside market reversal.

The market has risen for a few days in row. Any minor pullback next week will be bought.


Go Getter Model Portfolio Side Note:

New America Folio

The New America Folio is volatile. Proper timing and risk management are critical when investing in high growth stocks. The stocks I buy in this folio have the highest fundamental and relative strength characterists; they are on the cutting edge of their industry groups. They are generally, but not always, smaller companies with the highest growth rates: consequently, they are rarely cheap and can make big moves, both up and down.

As I have learned from my fellow members in the HGS Investors group, the best time to take positions in these stocks is at market reversal points, when a correction has run it's course and market begins a new rally phase, ie, right now.

Below are charts illustrating some recent trades:

Sold - Flotek Industries

No one ever went broke taking a profit.

Bought - Starbucks

Starbucks slumped after reporting earnings that beat
analyst expectation by just 1 cent. I added to our position on the dip.

Starbucks is beginning to expand in China. It turns out that folks in China not only
like tea but love $5 coffee.

It has taken me some time to learn the nuances of high growth stock investing. I believe that certain styles of investing can really only be learned by studing under a mentor. The HGS Investors group has provided me such mentorship. I am extremely greatful to the group, in particular Ian Woodward (analyst), Ron Brown (analyst) and Dr. Jeffrey Scott ( living proof that even an oncologist can make money in the market).

This blog post does not constitute an offer of investment advice. This blog is only provided for educational purposes. Please read the Important Blog Disclosure posted in the right channel bar.