The general economy is stagnant now without much power to drive the indexes higher.
I am looking for segments that are still strong.
I find pharmaceutical and restaurants still have some power within them to move higher.
the companies are
1.Valeant Pharmaceuticals International: thought the EPS is in the negative, it is showing a stong upper momentum and the segment itself is going up. This is a good indication to buy.
2.The Cheesecake Factory Incorporated
3. Domino's Pizza, Inc.
(Public, NYSE:DPZ)
4. Chipotle Mexican Grill, Inc.
(Public, NYSE:CMG)
I have found these 4 companies to show good upward trend with especially the pharmaceutical to show sustained segment upward movement in comparison to the restuarent industry.
Google 1 year segment company comparison can give a good estimate of the segment uptrend or low trend since there are not any direct segment trend softwares available for free online. This step is very important.
I found that for buying on the uptrend 30 day moving average is a good indicator of the trend. And also the lower line (range) of bollinger band can be used for stop loss automated selling price. It is always good to give some space for the price to oscillate between the bands but a automated price should be place in case it crosses the lower bollinger band. It could mean it has reached the stage 3. Sometimes the trend may continue but there are lower probability.
DO NOT PUT EGGS IN ONE BASKET HOWEVER MUCH YOU ARE CONFIDENT ABOUT ONE PARTICULAR COMPANY TREND. INVEST IN ATLEAST 3 COMPANIES.
DO NOT PUT EGGS IN ONE BASKET HOWEVER MUCH YOU ARE CONFIDENT ABOUT ONE PARTICULAR COMPANY TREND. INVEST IN ATLEAST 3 COMPANIES.
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