I've been sitting on the sidelines and it's time to see which shares to buy today because the IBD changed the current outlook to market in uptrend. So, I took some time to update my watchlist and ended up with the following stocks on it: IPGP CPX FCFS FOSL CPO CSL GSM SPRD WYNN AH GDI LULU NFLX PRGO TPX ILMN MNTA. Personally, I wasn't happy with many of the chart patterns but I've opted to buy shares in FOSL. While I placed the market order for today it won't be placed until Tuesday morning when the market opens. My guess is that the stock's price will fall at the initial market open. Mainly because I expect a short trading week with a lot of people on vacation. This will dry up demand and hence the price will fall.
FOSL traded at $121.96 on Friday and is extended from a proper base. Fundamentally, the stock is strong as the watchmaker intends to open a bunch more stores this year. It's part of the retail industry group which continues to do well in the down economy we have been experiencing. I find this surprising. The company is managed well with earnings, sales and estimated earnings over 25% each.
After considerable thought about which shares to buy today, I opted to pick up shares of FOSL at the market open
The IBD composite ratings are also strong. All over over 80 and A or B.
Last week was a strong week for the market before the holiday. Let's hope it continues.
My price targets for shares of this stock are for a 25% gain. The stock would need to reach a high of $152.45. My stop limit is set for 8% below my buy in. We'll see what that figures out to be on Tuesday.
I think that chances are good I could get stopped out on buying these shares.
I'm not convinced that we are in a strong market uptrend. There's a lot ahead of us with the negotiations of the debt ceiling coming this month.
Based on past experience, I've often thought that I should put my buy order for shares in after 10am. But I've continued to stick to my rule of making all of my decisions at the market close and before the market opens.
I'd love to hear what you are buying shares in. Let me know if you are entering the market as well.
Good luck with your stock market investing.