In order to find potential big winners in the making there is really not much you need to do. You look for big institutional volume footprints and you monitor how stocks react to earnings releases.
I cannot repeat this often enough: Trading is not about guarantees. It is about waiting for all the stars to align. When odds are in favour of higher prices down the road you need to be able to pull the trigger with confidence. The element of uncertainty simply cannot be eliminated, that’s why you have to manage risk in case things do not work out.
If you have trouble with the concept read this: Primer On Embracing Ambiguity.
That said, IPHI – Inphi Corp is one of the stock I am most bullish on right now. As I tweeted earlier it is part of the semiconductor group which looks like it is on the verge of a parabolic move to the upside.
$SMH Potential parabolic upside move ahead. Extremely bullish technicals. Autoupdating chart ➔ http://t.co/ySc1YOVcu9 pic.twitter.com/5HVoU730ac
— Olivier Tischendorf (@Tischendorf) February 12, 2015
https://twitter.com/Tischendorf/status/565986850683486208
In addition to being part of one of the strongest sectors out there, the stock itself is displaying all the bullish signs I am looking for:
- Consistent bullish volume accumulation pattern
- Bullish chart pattern. In this case a bullish ascending triangle
- Bullish moving average expansion
- Bullish reaction to an earnings release
Click on IPHI chart to enlarge:
Conclusion: As I wrote in my chart annotations, there is not much else you need to know. It’s really simple. In situations like these I simply go for it as odds are in my favour. Then I manage risk and let the market do its thing.
IPHI company description from Yahoo finance:
Inphi Corporation provides high-speed analog and mixed signal semiconductor solutions for the communications, datacenter, and computing markets worldwide. Its analog and mixed signal semiconductor solutions offer high signal integrity at data speeds while reducing system power consumption. The companys semiconductor solutions are designed to address bandwidth bottlenecks in networks, maximize throughput and minimize latency in computing environments, and enable the rollout of next generation communications, datacenter, and computing infrastructures. Its solutions provide a high-speed interface between analog signals and digital information in high-performance systems, such as telecommunications transport systems, enterprise networking equipment, datacenters and enterprise servers, storage platforms, test and measurement equipment, and military systems. The company also provides 40G and 100G high-speed analog semiconductor solutions for the communications market and high-speed memory interface solutions for the computing market. Its products include amplifiers and modulator drivers, clock and data recovery, isolation memory buffer, register, and SerDes products that perform a range of functions, such as amplifying, encoding, multiplexing, demultiplexing, retiming, and buffering data and clock signals at speeds up to 100 Gbps. Inphi Corporation sells its products directly through its sales force, as well as through a network of sales representatives and distributors to original equipment manufacturers. The company was formerly known as TCom Communications, Inc. and changed its name to Inphi Corporation in February 2001. Inphi Corporation was founded in 2000 and is headquartered in Santa Clara, California.
As long as a stock is acting right, and the market is right, do not be in a hurry to take profits. – Jesse Livermore
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