This article gives you a list of 6 top stocks to buy right now with specific buy points and stop-loss areas, which means you’ll save a ton of time, energy, and headache deciding what to buy. Who said making money had to be as complicated as assembling IKEA furniture without instructions?
Find Your Market Sweet Spot
Just like finding that perfect spot on the couch for movie nights, picking stocks in leading industries is your first step to investment bliss. Aim for companies that are the cool kids of their sectors, preferably those sitting pretty in the top 20 out of 197. Sometimes, though, dipping into the top 50 can uncover some hidden gems.
Why It Works:
- Top Performers: They’re not just showing off; they’re genuinely outpacing their peers.
- Solid Foundation: Less about the fluff, more about the sturdy, reliable returns.
Understand The Art of the Base
Consider the base depth of your stock like judging the perfect dip for your chips. Not too shallow that it barely holds any salsa, but not so deep that your chip breaks. A sweet spot between 10-20% base depth is ideal, though up to 35% can still work if the stock is sculpting a beautiful cup pattern.
Key Takeaways:
- Stability Is King: A stable base means fewer surprises.
- Watch the Pattern: Like clouds, not all patterns are created equal, but the right ones can be pretty rewarding.
Momentum Is Your Friend
Ever tried pushing a stalled car? Then you know momentum matters. Look for stocks with an up/down ratio of more than 1.0. It means more people are buying on the uptick—a good sign that it’s not just you who thinks this stock is going places.
Momentum 101:
- More Ups Than Downs: Because who wants a stock that’s more roller coaster than a reliable ride?
- Crowd Psychology: If everyone’s getting in, maybe they’re onto something.
Follow The Smart Money
Institutional ownership trending upwards is like your quiet, smart friend who always knew the answers in school. If they’re investing more, it’s probably a good idea to pay attention.
Why This Matters:
- Big Players, Big Moves: They have the research power. Leverage it.
- Trend Is Your Friend: Until it ends, but with big money behind a stock, that’s less likely.
Strength Shows Leadership
A stock with a Relative Strength (RS) line in an uptrend and an RS rating of at least 85 is essentially the class valedictorian of the stock world. They’re not just participating; they’re setting the curve.
Strength Signals:
- Outperforming Peers: Being ahead of the pack is always a good sign.
- High RS Rating: Think of it as a stock’s GPA. The higher, the better.
Setting Your Sails
Now, for the practical bits. Knowing when to hop on (buy points) and when to abandon ship (stop-loss areas) can make or break your journey.
Navigating The Waters:
- Buy Points: The perfect entry ticket.
- Stop-Loss Areas: Your safety net, because even the best swimmers need a lifeguard.
Incorporating these strategies can transform your portfolio from a hodgepodge of hopefuls into a streamlined vessel ready to navigate the high seas of the stock market. With these six strategies, you’re not just participating in the market; you’re setting yourself up to lead it. So, grab your financial life jacket, and let’s make some waves.
stock details
CRWD
-
- Next EPS Date: NA
- Industry Rank: 39/197
- Stage: 1
- Base Type: Flat Base
- Base Depth: 14%
- Up/Down Ratio: 1.2
- EPS Trend: Up
- RS Rating: 97
- RS Trend: Up
- Institutional Ownership Trend: Up
- Pros: EPS trend is up. Earnings and sales are strong.
- Cons: The price is a little bit high and not in the base. Price has been volatile recently, and the contraction of volatility isn’t clearly noticeable.
- Comments: The price is a little bit high for trading from a small account. It’s easy to place a fairly low-risk trade. The price is close to EMA 21.
- CAN SLIM, SEPA, etc: CAN SLIM stock but not coming out of the base right now.
- Maximum Favorable Buying Price: $332.47
- Stop-loss: $318.17
- Position Risk: 4.3%
GFF
-
- Next EPS Date: 2 May
- Industry Rank: 6/197
- Stage: 2
- Base Type: Flat Base
- Base Depth: 10%
- Up/Down Ratio: 2.2
- EPS Trend: Sideways
- RS Rating: 96
- RS Trend: Up
- Institutional Ownership Trend: Up
- Pros: The stock is under strong accumulation by the market and institutions.
- Cons: Earnings and sales are not growing fast enough.
- Comments: The price of the stock is far out of the base right now. Could buy as a SEPA trade, but it would seem more like a FOMO buy.
- Maximum Favorable Buying Price: $72.48
- Stop-loss: $70.18
- Position Risk: 3.17%
META
-
- Next EPS Date: 24 Apr
- Industry Rank: 21/197
- Stage: 2
- Base Type: Consolidation
- Base Depth: 16%
- Up/Down Ratio: 1.3
- EPS Trend: Up
- RS Rating: 96
- RS Trend: Up
- Institutional Ownership Trend: Up
- Pros: EPS and sales growing rapidly. Consolidation base less than 20%, indicating strength. Stock accumulated by institutions.
- Cons: Price of the stock is far out of the base right now.
- Comments: Both S&P500 and NASDAQ have had several distribution days; not many stocks are breaking out of a base, indicating calmer price action.
- CAN SLIM, SEPA, etc: CAN SLIM stock.
- Maximum Favorable Buying Price: $515.04
- Stop-loss: $493.24
- Position Risk: 4.23%
ANET
-
- Next EPS Date: 29 Apr
- Industry Rank: 28/197
- Stage: 3
- Base Type: Flat Base
- Base Depth: 14%
- Up/Down Ratio: 1.2
- EPS Trend: Up
- RS Rating: 95
- RS Trend: Up
- Institutional Ownership Trend: Up
- Pros: Price in the base. Key metrics are good.
- Cons: Base depth a bit deep for flat base. Industry rank could be better.
- Comments: When stock broke out of its base, volume wasn’t high enough.
- CAN SLIM, SEPA, etc: CAN SLIM stock in the base currently.
- Maximum Favorable Buying Price: $302.00
- Stop-loss: $279.20
- Position Risk: 7.55%
APG
-
- Next EPS Date: 2 May
- Industry Rank: 14/197
- Stage: 2
- Base Type: Flat Base
- Base Depth: 13%
- Up/Down Ratio: 1.9
- EPS Trend: Up
- RS Rating: 92
- RS Trend: Up
- Institutional Ownership Trend: Up
- Pros: Under strong market accumulation. Good price patterns.
- Cons: Sales growth less than 20%.
- Comments: Out of buyzone but close to EMA 21, less risky for buying.
- Maximum Favorable Buying Price: $39.95
- Stop-loss: $37.96
- Position Risk: 4.98%
HWM
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- Next EPS Date: 30 Apr
- Industry Rank: 31/197
- Stage: 2
- Base Type: Consolidation
- Base Depth: 16%
- Up/Down Ratio: 2.3
- EPS Trend: Up
- RS Rating: 92
- RS Trend: Up
- Institutional Ownership Trend: Up
- Pros: Heavily accumulated by the market.
- Cons: EPS and sales growth don’t match up.
- Comments: Good time for a low-risk trade. Price action has been tight, and EMA 21 is close, making it reasonable to place a stop-loss just below the EMA 21 line.
- Maximum Favorable Buying Price: $68.37
- Stop-loss: $66.08
- Position Risk: 3.35%
general requirements
Leading Industry Placement
A critical factor in the selection process is the stock’s placement within its industry. A stock needs to be part of a leading industry, with a preference for those ranking in the top 20 out of 197. This positioning indicates a robust and competitive standing within the market, reflecting a company’s innovation, market share, and overall industry health. While a ranking within the top 50 (50/197) can sometimes be acceptable, prioritizing stocks in the top 20 ensures exposure to the most dynamic and growth-oriented sectors.
Base Depth Considerations
Another crucial aspect is the base depth of the stock, which should ideally be between 10% to 20%. This range indicates a relatively stable price consolidation period before a potential breakout. In some cases, a base depth of up to 35% is acceptable if the stock forms a cup pattern, which can signify a stronger and more prolonged accumulation phase. The base depth provides insight into the stock’s volatility and consolidation strength, serving as a barometer for its readiness to advance.
Up/Down Ratio
The up/down ratio is a vital metric, highlighting the stock’s momentum by comparing the volume on up days to down days. A ratio greater than 1.0 is essential, signifying that there is more volume on days when the stock price is increasing compared to days when it is decreasing. This positive momentum can be a strong indicator of investor confidence and potential for continued upward movement.
Institutional Ownership Trends
Institutional ownership trends must also be scrutinized, with a preference for stocks that show stable or increasing interest from institutional investors. This trend is a testament to the stock’s credibility, financial health, and potential for long-term growth, as institutional investors often conduct extensive research before committing their funds.
Relative Strength Line and Rating
Furthermore, the relative strength (RS) line of the stock must be in an uptrend, indicating that the stock is outperforming the majority of the market. This strength is complemented by an RS rating of at least 85, placing the stock in the upper echelon of its peers in terms of price performance. These metrics are indicative of strong market leadership and momentum, making the stock a more attractive option for investment.
By adhering to these general requirements, investors can better navigate the stock market, selecting stocks that are not only leaders in their respective industries but also show promising technical and fundamental strength. This disciplined approach lays the groundwork for a robust and growth-oriented investment portfolio.
