Keep Riding the IPOs

Don’t jump off a trend until it ends. I know, the cliché gets old but it always works!
Seriously, why would we want to fight the trend. If IPOs are working in 2007, join the party.

Some of you may ask: Isn’t it too late to join the party? Did I miss the boat?

All I can say is this:
Find an opportunity, setup the risk/reward and make the trade. Sell if it stops you out and hold on if it starts to take off. Understand what you want to accomplish with each position and know precisely how you will take profits on pullbacks, climax runs, etc…

With rules in place, your overall portfolio shouldn’t get hurt. Yoy may lose a few trades but your bottom line will only decrease by a few percent and you will know the answers to the questions above (the trend may be over). Don’t guess when a trend is over, allow the market to show you when it is over!

Strong IPOs trending Higher:

• VMW – 107.04, the stock completed the $60-$100 run and is now above the triple digit threshold. I am looking for a base at or slightly above $100 for a new entry (to add shares). If it doesn’t base, I will ride my original position.
• ATV – 23.28, an interesting stock that was up 23% on volume 158% larger than the daily average. The Point and Figure chart shows a triple top breakout buy signal on a move above $24
• WX – 40.24, An excellent run over the past two months doubling investor’s money. I am looking for a short term base to form before attempting to grab shares. The pullback area for the next buy would be near $35.
• EDU – 68.00, the stock is up almost 100% on the blog and is a personal holding. I did sell a portion of my position too early over the summer. They teach English to students and adults in China (talk about a money maker).
• FCSX – 36.71, up 7% on volume 19% above the average as the stock is starting to gain momentum above the 50-d moving average. It looks like a good time to start accumulating shares (above the 50-d m.a.)
• RVBD – 49.38, The stock is building an eleven week base with solid support near $37 (above the 200-d m.a.). Ideal entries should happen along the moving averages (50-d and 200-d) or a breakout to new all-time highs.
• JCG – 45.88, the retailer is basing along the 200-d m.a. Now is the ideal buy for longer term trend traders. It’s a prime 200-d m.a. play (excellent risk/reward right now). However, it does need to overcome the 50-d m.a. to be successful!!!
• JASO – 42.93, the stock has formed a perfect cup with handle base with a pivot point of $48.67. A spread triple top breakout buy exists on a move above $49.

Others that make the list but are extended:
CMG, CPLA, SNCR, GTLS, CROX, FSLR