My Intermediate term-hold Strategy through next few months...
Now the reason I don't have a "portfolio" for Market Gems subscribers is simply because I am capricious, changeable and I sell stocks when I find new ones that might perform even better. Not the right staid and conservative strategy for a portfolio with subscribers. Anyhow the previous strategy is for the internets which could be termed the position hold or swing trade strategy. This one is different.
You can't accrue vast profits from day trading or swing trading alone. Forget it. You have to have one portfolio working for your while you trade with the other one. If I sell my net stocks within a month or 6 weeks than from where will I get the stocks for the intermediate term (1-2 months or more).. portfolio. From the earnings plays. I have included earlier this evening some of the earnings plays reporting from May 3 through May 7 and showed you where they are today. Lest you say I chose only the best, let me say we only have about 70-75% of our earnings plays a week that 'trigger' buy signals and from those about 2-3 fizzle with little or no gain.. 1-2 might have a loss, though never more than 5-7% if that. The rest have charts just like the ones I posted.
Anyhow the stocks with the best earnings reports, in the most 'preferred' sectors (i.e. BBOX, SEE,ADCT,HWP,LXK, HLIT, CUST,MACR,KSWS,TOM,DISH etc.) can be held (with stops of course) for weeks to even months, and sometimes until the next earnings quarter.
These are the ones that will not correct 20% after every rally, nor will they give you the gains of the internet sector, but for a balanced portfolio you will need stocks in sectors above. You don't need to select a lot, just a handful would do. I am fortunate that many of the plays are 'repeaters' so I am pretty sure in advance of about 30-40% of my new portfolio will contain.. the other 60-70% will be new stocks like CPRK, KBL,GMST, ADIC, etc)
If your feel they are getting overbought, or you feel the stock is running down too much, sell and exchange it with another from the group, or from anywhere else. The reason they do well is simple:
They are usually upgraded (most of them this quarter were upgraded, a few like ELNK and TXCC were downgraded, but TXCC recovered immediately), earnings are sometimes revised upwards for next quarter which could almost assure further upward price movement, more analyst coverage, more institutional interest, more 'appearances' in select areas of the daily financial newspapers, appear in 'investment' newsletters like Value Line, MPT Review, etc.. All the elements you need for a secured yet 'profitable' portfolio of stocks for the intermediate term. |
