As the latest rally remains confirmed, growth stocks remain in favor. Sanchez Energy (SN) was just added to our watch list in last week’s Sunday Stock Report. Less than two sessions later it traded aggressively higher +3.4% with a +73% increase in volume. That bullish action triggered our technical buy signal, and this leader then became the newest addition to our portfolio.
Today shares of this oil and gas explorer blasted to new highs, adding to gains from our $24.84 buy price. Premium Members first saw this leader as it was just featured the latest Sunday Stock Report, when it was being added to our high-ranked watch list. That watch list included just six of the best stock set ups that I could find during my weekend screening ritual.
As regular readers know, all of the stocks featured in the weekly Sunday Stock Reports are highly-ranked leaders which have solid fundamentals. SN has a 180% three-year EPS growth rate and a 338% three-year sales growth rate. In its latest reported quarter, earnings surged 1,600% to 17 cents a shares. Sales jumped 835% to $59.1 million.
When SN was added to our watch list, it was given specific trading criteria – such as trigger price, trigger volume, maximum buy price, max stop loss, areas of chart support. My written analysis stated – “…[SN] closed Friday (9/13) at a new 52-week high with above average volume. The last four quarters show a triple-digit sales growth along with sizable earnings increases. Earnings in the current quarter (not yet reported) are projected to be +192%. Looks poised to break out as soon as Monday AM.”
In order for a stock to properly trigger our technical buy signal it MUST be trading above the TRIGGER PRICE the volume is above the posted TRIGGER VOLUME. At this point we’ve had two clear buayble break outs for this latest rally (SN on 9/17 and ENV on 9/10).
We have now entered into each of these two latest breakouts and are properly positioned. By doing so we have the highs of the most recent base and then the 50 or 200 day moving averages that will offer support. This is coupled with a discipline to get out of a trade before any losses may get out of hand.
This is how I have been doing it, and how I have personally seen it happen over-and-over again for more than 10 years. These stocks start off as “set ups” on our watch list. If the market is right, then most break out, triggering their individual buy signals. If there are no breakouts, then we remain in a cash position awaiting a proper buy signal to emerge. By default this helps to keep us more in stocks during the better bull cycles and out during pullbacks when a rally may be under pressure.
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With Tuesday’s breakout in Sanchez Energy we currently have only five stocks on our watch list of high-ranked buy candidates that are setting up technically in proper bases of consolidation (get access here). This means that they have the winning characteristics which we are all looking for. Including such chart patterns as a cup with handle, flat base, double bottom base, etc. History has shown that when these stocks are posted as set ups, they are poised for a breakout!
I am currently running my stock screens and scans looking for any additional stocks to add to the watch list. All of the stocks I feature match up very favorably with winning guidelines that were developed from a famous 50-year study of the market’s biggest winners. These stocks are of highly-ranked, financially sound companies and have properly formed technical bases. These selections hail from the current leading groups of the market. They are profitable businesses with either a new product or service, new management, or are making new highs in share price as institutions and big money managers are accumulating shares. Get yourself signed up today and start profiting from this latest rally here.
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With the market now back in rally mode, individual investors such as yourself are encouraged to maintain a high-ranked watch list of buy candidates that look poised to breakout.
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