IBD

New America stock ASIA breaks out and I automatically buy some

@ 10:13 pm
GMI4/6
GMI-R8/10
T210886%

On May 10, I wrote: “So, stocks on the New America list often take off sometime after their story is published in IBD.   One recent addition to the New America list that looks promising technically to me if it can break $18.60, is ASIA. ”

After I wrote that post, I placed a   GTC (good til cancelled) trigger order with my broker to buy ASIA if the stock traded above $18.60.   Sure enough, a week later, on Tuesday, ASIA broke out on huge volume.   I was at an all day meeting on Tuesday, when ASIA broke 18.60 and I bought my shares automatically at around $18.66.   One does not have to watch the market in order to buy break outs.   Just use trigger or buy stop orders. ASIA closed Tuesday at 19.44. I will now place a GTC trigger order to sell ASIA if the stock falls below $17.   These trigger orders take the emotion out of the trade. Note on the chart where “NA” indicates when ASIA appeared in the IBD New America column. It makes sense to monitor stocks that appear in the New America column.

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QQQQ holds support; 43rd day of up-trend; QSII

@ 11:52 pm
GMI4/6
GMI-R7/10
T210883%

I always have to remember not to anticipate a change in trend, but to wait for the actual signal.   On Monday, the QQQQ went to the edge of support and held.   There were 19 new highs and 8 new lows in my universe of 4,000 stocks on Monday.   Only 3 of the new highs were on my IBD100 lists: VPRT, QSII and NPK. I have been writing about QSII for weeks.   It broke out of a three year base in April and is at an all-time high.   I own QSII. I also have a position in QLD, the ultra long QQQQ ETF.   I intend to sell cash-secured puts in my IRA in early June if this up-trend remains intact.

QQQQ Up-trend completes 37th day; IBD New America stocks at new highs; ASIA; most of my sold put options expire worthless on Friday

@ 10:56 pm
GMI4/6
GMI-R8/10
T210892%

The QQQQ completed the 37th day of its up-trend on Friday.   However, there were only 16 new highs and 5 new lows in my universe of 4,000 stocks on Friday.   Five of the 16 were on my IBD100 lists:   VNUS, GMCR, HANS, LINC and INT.   All of these 5 but   VNUS were also on the IBD New America page at some time this year.   I keep a watchlist of New America stocks to look for possible winners.   New America stocks are companies that IBD staff think have innovative products and exciting businesses.

Both Nicolas Darvas and IBD’s William O’Neil have written that winning growth stocks tend to have great stories behind them.   Most of the New America stocks eventually make it onto the IBD100 stocks lists.   So it is worth watching these stocks.   INT was on the New America list last February around $31 and closed on Friday at $41.90.   And HANS was written about last January around $34 and closed Friday at $42.55.   So, stocks on the New America list often take off sometime after their story is published in IBD.   One recent addition to the New America list that looks promising technically to me if it can break $18.60, is ASIA.  

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