The NASDAQ received a follow-through day on 5/14/2015, up 69 points on above average volume. When one of the major market indices has a follow-through day, it’s prudent that growth investors add equity exposure by selecting a stock to purchase. 


In-house, Scott O’Neil would say every investor should at least buy one stock on a follow-through day. Buying a stock on a follow-through day, even if the market is showing weakness, allows investors to receive important feedback from the market.


After making a purchase on a follow-through day, it’s important to gauge how the portfolio and market behaves. If the market continues to reward the investor with profits, then it would be wise to increase exposure to the market. However, if the market reacts negatively, it would be a signal to sit-and-wait for further feedback. Following an approach like this allows investors to methodically wade into the market without taking on undue risk and participate in upside action if the market continues higher.


If you have any questions on how to select the best stocks on a follow-through day, please contact our product coaches for a coaching appointment. 

 

The MarketSmith product coaches can be contacted at 800-424-9033 or at reachus@MarketSmith.com


Happy hunting,
Jason Thomson
MarketSmith Product Coach