Sunday, July 18, 2010

Stocks In Uptrends

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To be successful buying stocks, you want to find stocks in uptrends. A stock that is going down will probably head the same direction. I know that many times, it's easy to get the feeling that a stock can't go any lower or that it might be a bargain. But the stock market is full of stocks that wouldn't go any lower and guess what - they did. That's why you should look for stocks that are going up and that have RS ratings that are also showing an upward trend.

If you are looking for stocks that are breaking out like I talked about in my post called Great Stock To Buy Today, you are probably going to uncover stocks that are in an uptrend. If you combine that with an uptrend closing higher on higher volume, you could have a winner.

This is why the CANSLIM strategy focuses on stocks that are breaking new price highs. For a stock to reach an all time high, it had to break an old one and an old price high before that. While you can make money buying stocks that are depressed in price, you are more likely to make money faster with stocks that are showing movement to the upside.

Where To Find Stocks In An Uptrend


The best place to look for stocks going up is to look at the New Highs list. This is a good list to find stocks that are in uptrends. You will also most likely find they have RS lines going up as well. Another place to look in the IBD is in the Stocks on the Move screen in the Making Money section of the paper.

Once you have identified these kinds of stocks, check out their fundamentals and then their charts. It's likely that within those groups of stocks, you'll find some that have some great stock market investing fundamentals and institutional support.

Focus on these kinds of stocks.

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