Who Has Better Research????
I am often asked how much fundamental research I do on stocks I research for
possible trading candidates. With few exceptions (and this may surprise some of
you) the answer is almost none. Why? The biggest brokerage houses (aka the
“Generals”) already have spent millions of dollars on the best minds and
fundamental research in the industry. How am I going to compete with or
duplicate that, as an individual trader? I can’t, but I can see what they are
going after and ride their coat tails for short-term and day trades.
11:41:03
Intraday Setup Alert
PF Chang’s (PFCB)
is trading in a
Slim Jim at the intraday high. PFCB is now up 1.59 to 67.39.
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The stock has risen from near $45 to almost $70 over the past
few weeks. I am sure that the
Beardstown Ladies are not responsible for making this stock run, so why do I
need to know what all the projections, etc. are on the stock?
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When the stock breaks out, traders can now jump on for the ride.
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Follow short-term relative strength and ADX as indicators, then
look for chart patterns. Let the big guys do the fundamental research for you,
since they are the best at it. Stocks usually don’t go on these runs because
everyone with an E*Trade account decides it’s a good buy.
Have a great weekend!
Duke