Thursday, October 14, 2010

Hot Stocks To Buy

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I'm back in search of hot stocks to buy. The market indexes were all lower today but since volume was lower it didn't affect the current market outlook which is market in confirmed uptrend. Remember that the first thing you want to check each day is the market direction. You can find it every day in the Big Picture column. I always check the charts for each index daily at investors.com. So while the market didn't go up today, it didn't reflect any distribution. This has been a prolonged uptrend which is good for us as we want it to go for awhile so we can get our practice out of the way before we use real cash. So far, I've picked up 13 positions (including today's pick which I will buy tomorrow.) Two I've closed as they were stopped out. I'll review my positions in another post.

I've been still working on my Buying Stocks - A Case Study series. Here are four additional links to the previous posts in the series for your reference.

Best Stocks To Buy
Stocks To Buy
Good Stocks To Buy
How To Buy Stock

Finding hot stocks to buy today means more than fundamentals. It means finding stocks with proper setups.



For now, though, I turn my focus on finding hot stocks to buy today. I decided to add STR Holdings, Inc (NYSE:STRI). STRI was up 3.87 percent on volume that was 79.41 percent higher than average. From my calculations, the stock broke through a buy point of $24.60. It closed higher today at $25.47. It's extended about 3.5% above the pivot point which puts it within the 5% range you'd like to see. Otherwise the stock is to far extended from the buy point.

I'm going to set a price target 20 percent above my purchase point which I will know tomorrow once my market order gets executed. Also, I'll calculate my stop limit of 8%. I've been making all of my transactions after the market closes each day. I am doing this because I work during the day and it's hard to keep on top of all the hot stocks to buy now. I spend the after hours focusing on my screens and reviewing my stock charts. I'm starting to get a real feel for what I want to look at each day.

An additional tip that I would provide is to take a look at the stock charts in the IBD Weekly Review which comes out on Fridays. Each stock chart talks about the specific buy points the editors think apply to certain stocks. This is a nice feature of the paper and if you take the time to study their notes, you'll start to recognize how they calculate pivot points. In the chart above, it's .10 above the top point of the point in the middle of the "W".

As an additional note, I've added my current watch list to the sidebar for your review. Good luck investing in the stock market.

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