LXFT: Likely White-Knuckle Ride in Store for Investors

Luxoft Holding, Inc., together with its subsidiaries, provides software development services and IT solutions to multinational corporations primarily in Western Europe and North America.

This selection was just added to my High Ranked Leaders Watch list on 10/19. Shares broke out on 10/23 and triggered a technical buy signal. At 10:23 AM that morning, I issued a BreakOut Alert! which was sent via email to all Premium Members.

…normal circumstances is not what we will be dealing with today.

After a bit of an uneasy start as shares did pull back after the breakout, yet held support, this stock got going in the right direction.

Currently, this holding has several positives from a technical perspective.

1) It has had three days of volume-backed gains since the “uneasy” day after the stock just broke out.

2) The stock’s ranks remain very high.

3) Shares have been quietly trading at new all-time highs the past several sessions with no willing sellers.

4) Shares remain in a short-term uptrend since finding support in late August at the 200-day moving average. Although, a break from that uptrend or below the green-dashed line on the chart below would be the first concen.

I am going to keep our 1st SUPPORT at the 50-day moving average ($65.49). Under normal circumstances, any trading or a close significantly below there would be a sell signal.

However, normal circumstances is not what we will be dealing with today, as the company will announce its financial results for the second quarter after the close.

Charts courtesy of StockCharts.com

No matter how good any current holding looks technically or fundamentally, when earnings are released, anything is possible. Earnings announcements are the best way to wreck a great going trade.

Investors need to be prepared for some volatility to say the least. Take a look at EPAM last week. Or is a worse case, some steep losses, such as was with SKX. Conversely, look at PAYC when it announced and shot up +17% last Wednesday.

It always seems like 50/50 odds when it comes to the release, and something we are not used to dealing with as we do all we can to keep the odds in our favor. We buy when market is trending up, buy leaders in leading groups, use both technical and fundamental analysis, etc, etc. All this is done to improve our odds.

So, although LXFT has solid fundamentals, very high ranks and is technically doing very, very well it is going to be a tough hold through earnings.

This is especially true as we do not have much of a profit cushion.

As some of you may already know, for more than 8 years I had served as Editor-in-Chief an independently licensed website that offered stock reports and services based on the CAN SLIM® investment system.

I have developed a knack for being able to quickly and accurately analyze high-ranked stocks based on this winning investment strategy.

Over the years, I have enjoyed assisting individuals from professional money managers to private investors with their needs in relation to implementing this investment approach on a daily basis in the current marketplace.

Each Sunday you could hear me deliver my weekly market report as part of the “Your Money Matters” radio program on ABC and CBS radio networks.

I now run two websites and a portfolio service where I features select stocks which match up very favorably with the guidelines of the winning investing system.

At my long-standing SundayStockReport.com website, I produce a weekly newsletter that includes my High Ranked Leaders Watch List, and ongoing portfolio style coverage on breakouts from that concise list.

My newer site, BuyingBreakOuts.com  is where I offer a stock watch list each market morning, emailed out as a Stock WatchList Morning Update. This report contains my hand selected stocks which looked the most poised to break out. There are also real-time “BreakOuts Alerts!” of stocks from that list which trade above my set Trigger Price. These are sent via email to those who sign up for this free service.

Most recently I introduced – James Taulman’s Personal Portfolio Service where I give specific BUY, HOLD or SELL calls on suitable high-ranked market leaders. These selections have solid fundamentals along with bullish technical chart patterns. I also present stocks for shorting and give, SHORT and COVER alerts on those as well.

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This new service is basically how I use the information which he has available to me, to trade a personal brokerage account.