Spring Cleaning – Focusing On New Strong Stocks

by Olivier on May 27, 2010

It was about time I cleaned up my public list and said good bye to a few stocks. For now I got rid of BSK.V – Blue Sky Uranium and RVS.V – Riverstone Resources. More will follow during the weekend. It’s time to refill the list with new more promising stuff. The recent market correction is an excellent time to reassess charts and focus on new names. It still remains to be seen if this is the end of the cyclical bull market or if we can set up for another leg up.

In any case, new stocks and new stories will emerge. As opposed to old stories it is much easier for new stories to attract money. Going with the flow without taking excessive risk simply means buying strong stocks trading near their 52 week highs or their respective all time highs. As I’ve written numerous times those are the ones that can move up significantly even if the market only moves sideways.

For most people it’s very difficult to let go of stocks and shift their focus on new names and new opportunities with more potential. The reasons are manifold. Emotional attachment. Falling in love with stocks. You name it.

My job as a trader is to be objective and to adapt to new situations. No hard feelings. That’s the only way to approach charts. If you let feelings be part of your decision making process your judgment will be clouded . Remove any kind of bias. Emotions induce mistakes which will end up being a very costly experience. If you have trouble letting go of your pet stocks you might want to reread my post on embracing ambiguity and uncertainty.

Enough said. Today some new names found their way into my public list:

  • CSTR – Coinstar: Along with NFLX – Netflix a very strong stock that is now part of the Entertainment Sector Overview Chart.
  • LOGM – LogMeIn: New stock trading at all time highs. Mobile and wireless investment theme.
  • LOPE – Grand Canyon Education: Education and schools investment theme.
  • PPO – Polypore: Stock with very constructive action during the downdraft.
  • RDY – Dr. Reddy’s Laboratories: One way to play the India investment theme. The strongest stock of the India Sector Overview Chart.

I will add an Education / Schools Sector Overview Chart to my public list over the weekend. The sector is moving up nicely and there are a few stocks that are displaying extraordinary strength. LOPE – Grand Canyon Education and CPLA – Capella Education are going to be part of that chart.

It is a miracle that curiosity survives formal education. – Albert Einstein

Education is not received. It is achieved.

My public list with all my charts can be viewed here:

Buenas noches!

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