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If you nibbled at WWWW early before an FTD, what does the day by day analysis tell you? Here is what I see.
1. Sales & EPS are stellar.
2. ROE is solid.
3. Volume on the breakout certainly was not spectacular.
4. Today's volume is not even tracking to achieve accumulation.
5. No daylight/retracement gaps - the 5 day handle drops all the way back below $15 overlapping the lows of the 4 week square box. Additionally the 4 week square box drops back into the consolidation that started on 3/27. Space between the consolidations would be much more bullish.
6. Still no FTD showing on the indices at Mid day.
7. Overall, I am not sad that I have not entered WWWW
8. I know IBD says 70% fundamentals and 30% technicals. However, when we compare WWWW and PCYC, the market seems to be telling us it is the other way around. Technicals were much better at PCYC. Lots of lift/daylight/retracement gap in PCYC as it tightened daily ever higher in price. In my experience when looking to capture a 20% move, the technicals outweigh the fundamentals.
I appreciate your commentary, but I'm going to have to side with WON. The WON strategy is to stick with stocks with stellar fundamentals and give them time for the move to play out. There were several stocks that made 20% plus moves in the last uptrend that took time to develop, such as ALXN, and TSCO, as well as others too. Trading out of these stocks before giving them a chance to make their moves just reduces your big winners, and you need big winners to offset the small losses that you will have 50% of the time. I myself used to trade a lot more frequently, and it just doesn't work in the real world. It does work on Chart Arcade because you have a huge universe of stocks to choose from, and you can wait for a perfect chart to show up, without worrying about the "time factor". In the real world, you may only find a few stocks in an entire year that work well. I would caution anyone reading these post's to only focus on the best of the best fundamental's, and give them time for the move to work out. In the case of WWWW, we have not had a follow through day, but the company does have superb fundamentals - the kind that big winners often have. If you simply have to be in the market, in spite of not having had a FTD, take a small position in the stock and see if it can make progress. If the first stock out of the gate, with stellar fundamentals can't make any progress, it's probably a good sign to not buy anything else for now.
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