Lots of folks are saying we need more bases to increase our chances of a successful FTD (which I agree with partially) but that is so not 2020. Anyone remember how many bases there were in April as well as breakouts? I can think of VRTX. (1 of...)
Maybe a few others but there wasn’t much. Point is, the more years and corrections I log doing this, the more I realize that you don’t need a fully formed base to buy a stock on or even before a FTD (when that day comes). (2 of...)
We saw atypical bases structures in April 2020 and were seeing them again now. In both instances, there was significant doubt just before the FTD because there were little to no solid bases and everyone was infatuated with retesting lows (myself included). (3 of...)
Just giving some perspective here. Base details IMO should be dictated by the backdrop of the market. The flip side is we flush down more giving us better looking stuff. (4 of...)
Again, open to all scenarios but I am seeing fear start to pick up and leading stocks acting ok relative to ST MAs. Posted this in TM chat last night. 🐒 (5 out of 5)
I recall @TMLTrader texting me on his buy in TWLO back in Oct/Nov 2018 and popping a beautiful gain in August 2019. I responded with that’s not a CAN SLIM base! He replies with, “looks good enough for me!”. I passed on a 100%+ gain because I was looking for the perfect base..
Lesson here for me was, focus on details yes but also keep the context of the market backdrop in your back pocket. When you have a stock that exhibits enormous relative strength, sometimes they don’t build out proper bases. Those sloppy bases can be very powerful and rewarding.
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