I wanted to do a quick update on the stocks I discussed in the July 16 video update.
If you remember, I highlighted 7 stocks that were good candidates for a bounce off support. I bought two of them: MET and NVDA. I wish I’d bought all of them … they’re all up big time. (I was waiting for better entry prices on the other five).
- MetLife, Inc. (MET) … +14%
- NVIDIA Corporation (NVDA) … +9%
- The Goldman Sachs Group, Inc. (GS) … +27%
- Owens Corning (OC) … +27%
- The Western Union Company (WU) … +11%
- EMC Corporation (EMC) … +19%
- LSI Corporation (LSI) … +29%
These are good examples of the power of trading near important price levels. Just take a look at the charts at the bottom of this post and notice the bounces from mid July. Ka-Boing!
S&P 500 Index (SPY) – weekly chart
Also, the S&P has broken through resistance – the horizontal white line in the chart we have previously been unable to break. We are still long and enjoying the ride. This former resistance area is now acting as support … let’s see if it can hold.
I have also identified about 15 more stocks that are positioned similarly to the stocks I identified in July. These are positioned where we can apply our strategy of buying with predefined risk. If you would like the names of those stocks, just let me know.
I discussed the seven stocks in July to show you how the Smart Chart Investor strategy works with individual stocks. Individual stocks can be more volatile than the index, so keep that in mind. Also, our primary focus is not on “picking stocks,” but on protecting our downside risk. However, I do like pointing out and identifying stocks that offer good buying opportunities—and most importantly are positioned so we can implement our strategy to set our risk.
Remember, the main goal of Smart Chart Investor is protection from significant downturns in the S&P 500 index. We do that by having a sell strategy. Once you have a sell strategy, you can define your risk when you buy.
Check out the charts below of the performance of July’s identified buying opportunities. Again, if you would like the names of the 15 other stocks I’ve identified that have similar set-ups, just let me know.
Average 19 Percent Gains Since July
Note: I only bought MET and NVDA. The percentage gains on the other stocks are not meant as Smart Chart Investor performance history, simply the gains those stocks have experienced since I highlighted them as good buy opportunities on July 16, 2012.