Hey everyone. Today's the first of what I hope to be several stock market investing today wrap up reports. Each night after the market closes, I'm going to read the Investor's Business Daily to develop my stock market ideas and start using the simulator over at the Virtual Stock Exchange to illustrate what I am doing. These exercises are not buy recommendation's but are just more of a way to develop your investment strategy.
The first part, for me at least, in starting my stock market investing program, was only investing when the market is in up trend. Currently, the market is in a correction and while the market rallied today, it now must exhibit what's called a follow through day before it's clear to start investing. If you have read any CANSLIM theory, you'll know that it's been documented that if the market is in a downtrend, three out of four stocks will follow the market down with it.
Therefore, rule #1 is this:
1. ONLY INVEST WHEN THE MARKET IS IN AN UPTREND
Now, what do you do when the market is in a downtrend. Well, that's the time to turn your attention to developing a quality stock watch list so that when the market turns, you'll be ready.
Here's what I uncovered today as my stock to highlight today.
Medifast Inc (MED), $17.97, is the first stock to highlight on my site based on the screens I've been setting up. I'm not sure that I like it's chart pattern and it's been beaten down over 50% off of it's 52 week high. But, it showed strong price and volume action up 7.93% on 100.69% change in volume from it's 50 day moving average. It's approaching it's 200 day moving average which if it breaks it might propel it higher but this is speculation on my part not based on experience.
Here's a chart:
TLVT KCI RHT PEGA FCX GIVN
Poor Man's Stock Market Investing Challenge Update:
Today kicked off my challenge and it was good to see that BrianABeck88 started off right away making some trades to see what he can do. I'll be keeping an eye on those who join the challenge. Expect it to be quiet for a while but one day there will be others who join the challenge.
My status in the challenge is that I am on the sidelines until the market turns towards and uptrend.
Good luck!
Ty
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