Michael: Here's one I found today, AFCX. I break the Monday issue only rule all the time. <G>
The reason I like this Pitbull stock is because it has better CANSLIM growth numbers than most, the chart is good and it has a below market multiple. It's a lot like ORBKF (where I broke the Monday and 2:1 rule by about an 1/8), but not in as hot a sector.
Now, instead of buying it the day after it makes the new high, I would risk missing it all together for a better price. I would try to buy it at 26 1/2 or so in order to get a lower risk stop loss order under the trade. Ford would have you buy this stock at 27 5/8 or more on the open (if this were a Monday) and risk three points.
I want my stop to be no more than 10% which puts me below the "handle" which preceded Tuesday's breakout. This stock did a fairly typical thing after breaking out on volume of 200% average. It opened and ran up to 29 and settled. It will probably settle all the way back down between 25 and 26 (if it's going to work). So, I'll put a GTC limit order in at 26 1/2, and if I get filled, a stop at 24.
Then, I'll play by the rules, no questions, no checking more than weekly.
This looks like a good stock. I think selection and entry are the single most important points in any market play. So, I take all the liberties up front to find the best candidates. Merit Ranking has some significant limitations, and in a market like we are seeing, it will put you in laggards.
That's the way I use the system. |
