Tim Reazor
Chief Investment Strategist
Noram Asset Management
This will be an interesting day in the market. The market digested the huge gains from Tuesday beautifully. This is akin to you eating two complete Thanksgiving dinners back to back and feeling fine shortly afterward. You may not be marathon ready, but you’re doing well and feeling fine.
So where do we go from here? The market is at a decision point. Normally gold will not go up along with the stock market. The normal correlation is gold up stocks down. At the moment the markets look strong and gold looks bullish – for the moment. So what is an investor to do? Be in only the top 2% of stocks. Demand the most fundamentally and technically superior stocks that are near proper buy points or in buy ranges. These happen to look like CMG – which I’m long and UA – which I’m not for the moment. CMG has a buy range up to 589 and UA up near 118.
If you’re in a winner how you handle it is crucial at this juncture. I’ll start delving into knowing how and when to sell in the next few newsletters. The first step is not letting your stock close 5% or more from a proper buy point. The second thing I’ll cover tonight is the 21 EMA (Exponential Moving Average). If you get two closes below the 21 EMA it’s most likely time to let your winner go before you round-trip your stock.
If you want to understand how I find a buy point – which is a stock’s point of least resistance to go higher or have trouble selling. Email me at Tim@NoramCapital or reach out to me on Twitter at @TJReazor.
Best Regards,
Tim Reazor
