300 [Late upload – Friday March 5th. Mar 8, 2021]

  • Probably not gonna play the bounce on any individual stocks, but if I do I’ll play it on one of the etfs maybe. Still would like one leg lower before I get any confidence in these bounces, feels like a suckers rally, I think we’ll potentially bounce for a few days into one of these MAs then have another leg lower. For me to get confidence in any bounce we’d need another leg lower and undercut the 200day. Get some real panic into the markets, rn it’s just a garden variety pullback, 11% in the QQQs is nothing, one more leg lower would be really nice.
  • FLGT has quadruple digit eps and rev growth, that’s not very common, look at this, this is a company hitting a home run with a product or service. They went from like single digits millions in sales to almost 300M, some kind of genetic testing company. This is what you want to look for, you’re looking at the earnings and rev like holy sh*t, if you’re like ‘eh is it that good’ then the answer is no, you want the holy sh*t moment, bc if you get a holy sh*t moment, other market participants will too, and the market realises this stock is not where it should be.
  • I know exactly what I’m looking for in the markets, and I just don’t see any setups where I have an edge. I know exactly what I look for, I don’t have to spend time searching, for me there is just nothing for me to do.
  • GMBL my only long position rn, little bit of a wider stop bc it’s some random micro cap stock, that is htfing still, building hls.
  • GME also long from yesterday tiny size, I sold half ah bc it was lower I didn’t wanna risk a gap down so I just sold half.
  • I started a watchlist for triple digit growers no matter the market cap, I’m thinking one way to scale my trading also is to start trading some of these things on the weekly chart also, and build positions over several days, bc these things in the right market conditions, can go up 300/500/1000% in a few months, there is a big edge in trading them. I am having trouble scaling bc of the way I trade, so it would be nice to have position trades like 3/6/9months etc. So I run some scans on Marketsmith to build that watchlist. If you want one way to have really good returns every year just focus on those stocks, that’s one way of cutting down the noise in the stock market, if you’ve done your research, and cut out the random ones, these are the leading names, these stocks are powered by rocket fuel in the right market conditions.
  • Also there is a lot of random stocks that have these random big growth spouts bc they get a big contract stuff like that, try to figure out which ones actually have real growth vs something like some biotech that got some bio bucks or a company that got a big contract then they’re not gonna get any contract for the next 3years, you want a certain kind of growth stocks. Something like ANAB, no rev then suddenly 60M, that’s obviously bio bucks, just like 5M here, 3M here, so that’s irrelevant, you want consistently accelerating growth. Something like APPS, this is a perfect perfect one, look at the move it made, consistently ramping up accelerating, they have a product or service that is in high demand, recurring revenue, that’s why their numbers are so steady. Then you have stuff like APT, this is a one trick money obviously, they make masks, they had triple digit growth lately but now their business is probably not gonna be booming going forward, this thing obviously made an enormous move early last year, but it’s a one trick pony.
  • GROW this made an enormous move back 2005/2006, I remember this one not bc I was trading it but bc I have it in my Evernote, so it feels like I was trading this thing, this is why it’s so important to build your own database, bc you recognise these things and you gain experience, it’s a little bit like you were there trading these things. So it went from pretty much $2 to almost $40 in a year, look at the earnings it had, triple digit, quadruple digit eps growth here, that was the fuel. This is the flag I was thinking about, an ep, these small stocks are great for small accounts, in the right market environments these things make big big big moves.
  • INSE, I don’t want something like this, too cyclical, I want something predictable, something that’s growing Q after Q, I don’t want something random, I want the best ones, the best companies, the elite of the elite companies, the best products and services, the cutting edge stuff, that’s where the big money is. Focus on the best of the best, your accounts are gonna be best of the best. If you focus on random stuff, well your results are gonna be random.
  • QDEL, another one of these corona names, do these diagnostics and stuff, very big earnings triple digit, but look at the chart, been going sideways pretty much a year, made a big move, now it’s been going sideways, that means the market doesn’t have confidence in this thing to keep growing. Versus something like FUTU or TIGR or FLGT, still in uptrends, you want stocks in uptrends.
  • If you’re gonna hold a stock for like a year, you need to make sure the business is gonna continue, that it’s not some kinda funny business with some kind of a one time stuff behind it, you want preferably to catch a secular trend, a company that carved out a niche, leading in their niche, having a hot product in a growing sector, something that can grow for years and years going forwards, those are the type of stocks you really want to find. You have to do some research on them, you can’t just buy bc they have triple digit numbers. You really want to make sure it’s something that can keep growing for a while.
  • Another thing you can also do is look for companies that have big estimates, that may not have triple digit eps/rev rn but they are expected to have, bc stocks trade on the future not what’s happening rn, most of the time, except when you have panic or euphoria, but most of the time the market is forward looking.
  • Usually an average year has 2-3 bull runs, then there are years that go straight up pretty much most of the time, two of those years I can remember were 2017 market pretty much went up the whole year without any significant pullback at all, and 2013, but those are exceptions. But most years have 2-3 decent bull runs, and those are the times when these types of triple digit stocks will 2/3/4x in a very short amount of time.

#masterclass #earnings #ep #marketsmith

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