Hey traders,
It’s Jack here with a quick Tuesday update.
We’ve got a lot of stocks hitting new highs, and you know how much I love seeing that.
But here’s the deal — it’s not just about any stock hitting a new high. You’ve got to be picky about which ones you trade.
When I’m looking for stocks to trade, I’ve got a couple of rules that help me narrow it down:
- Hitting new 52 week highs
- Stock price over $25 a share
- At least 500,000 shares of average daily volume
- Trades on a major exchange
- And, of course, has options available
Once I’ve found those stocks, I like to set up my charts with color-coded daily bars and use my TrendPoint software to track their performance.
But you can use whatever platform works for you — just make sure you’ve got a system that gives you an edge. Here’s exactly how I set up my chart.
And pay attention to what I said before: We’re in a stock picker’s market right now.
The S&P 500 has 500 stocks in it. But not every one of those 500 is going to rally, even if the index is making a new high. So focus on the ones that are in a solid uptrend. Don’t get distracted by the ones that just popped on good news.
A true trend is when a stock keeps making higher highs and higher lows, chugging along steadily.
It might pull back to the green, short-term trendline every so often, but as long as it’s trending upwards over time, that’s a stock you want to keep an eye on.
This chart right here is about as perfect as you could hope for. Notice how the price bounces gently off the green, 20-day trendline over and over? That’s what you’re looking for.
So here’s your best tip for today: Don’t throw darts at the market and hope you hit a winner. Be selective.
Pick the right stocks with the right criteria, and you’ll have a much better shot at making serious gains.
Happy Trading,
Jack Carter
P.S. Every single week, I use this same strategy to pick that stocks that let me target weekly income. Check it out here.
