EarningsBeats.com Digest for November 20, 2020
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Tom Bowley's Top 10 Stock Picks have been revealed!
Last night during the "Top 10 Stock Picks" webinar, Chief Market Strategist Tom Bowley released his Top 10 Stock Picks in our four portfolios, 40 stocks in all. You can see the final results of last quarters picks below:
The stocks revealed last night are meant to be held for the next 90 days. You can get access to all 40 stocks and the recording of last night's webinar wherein Tom discusses his methodology and a detailed analysis on every stock that made the cut by clicking on the NO COST 30-day trial below!
Slowing Momentum Requires Us To Have Patience
For those that tend to invest for the long-term, short-term momentum issues don't seem quite so bad. But for a short-term trader, patience isn't usually our strong suit. That's why it's generally not a bad idea to take profits when a stock moves to new highs, but the PPO doesn't. As an example, let's look at Vocera Communications (VCRA), which was trending nicely higher in October, only to come to a halt. While it's a lot easier to see
it with 20/20 hindsight, experience tells us to look for potential areas of pauses on a chart. For VCRA, the pause has come in November:
31 seems like a key area of support to me. The two blue arrows mark recent price lows that approached 31. Also, when I see a negative divergence, I look for a PPO centerline test/reset and a 50 day SMA test. I've highlighted both of these with two pink arrows on the chart. Note that the 50 day SMA is currently at 31.10. Two recent lows plus the 50 day SMA provide me multiple reasons to look there for a potential reversal.
While holding a stock during this pause can be excruciating at times, waiting to pounce and buy at a possible pivot point is much more exciting.
Happy trading!
Tom Bowley
Chief Market Strategist
EarningsBeats.com
Better Timing. Better Trades.
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