Stocktoberfest is an incredible 2-day event, where experts representing different markets and asset classes (stocks, bonds, venture capital, angel investors, founders) collide and share knowledge, laughs and drinks. The weather on Coronado is not bad either.
Last October, our presentation was titled: Big Trends – How To Find Them, Ride Them and Get Off.
During the event, we highlighted $DDD, $SSYS and $PRLB as stocks with at least 20-30% more upside potential and those stocks more than lived up to the expectations. This year, we intend to give a presentation about the IPO market – how it has changed over time and how to profit from it.
Here comes the good news: all Annual subscribers to the ST50 Premium will receive a free ticket to this year’s Stocktoberfest in Coronado, CA (Oct 17 and 18) – one free ticket per subscriber.
You could sign up for the ST50 Annual here.
If you plan to attend, please register as soon as possible, because the offer is valid until we run out of seats.
We hope to see you there!
My friend, Phil Pearlman asked a bunch of prominent traders “How do you know when a stock is broken” and since the good doctor shrank my answer for presentation purposes, I decided to post it here in its entirety:
Don’t forget that one investor’s garbage could be another investor’s treasure, so the whole concept of a “broken” stock is very subjective.
With that in mind, a good rule of thumb is:
1) Stocks that are making new 52-week lows during bull markets are usually there for a good reason. Stay away from them. If a bull market cannot lift them up, there is an inherent weakness that is not fixable or discountable overnight. Example – coal and gold miners over the past 2 years. Stocks don’t just switch from a state of being in a downtrend to a recovery mode just like that – there is a long, boring period of accumulation in between; therefore don’t worry that you are going to miss the bottom. You want to miss it. There are always better places to allocate your capital.
2) When a momentum high-flyer breaks its uptrend, it is in a no-man’s territory – a place, where momentum investors are gone or short; also a place, where value investors are not interested yet. There are no motivated buyers and the number of sellers increases with every downtick. When a momentum leader closes below its 50-week moving average, consider it a a big warning sign. $AAPL did that in November 2012, when it was trading at $550. It went below $400 in the following 6 months.
I wrote on the subject last year too: This is How Upside Momentum Often Ends