How to Spot When Smart Money is Buying Low
When the smart money wants stock, they can't hide. Especially if they have a strong opinion.
Volume is the first step but not the only step. WHERE the volume happens is critical.
Most traders want volatile price action, that's how we make money. Nothing wrong with that but we also need to keep a tracking journal of future trades.
In this case I am discussing "accumulation."
I'll define accumulation as heavy volume, after a decline, without volatility. The last part of the equation is counter intuitive since we just stated we want volatility.
But here's the key. If you wanted something really bad, would you tell everyone who could take it from you? Of course not. That's why smart money tries to buy as quietly as possible, before it becomes obvious to others.
The chart of CRWD shows accumulation. A trading range, after a decline on heavy volume. This stock is going in my journal. Next I'm looking for "fuel." A large green candle with volume to ignite a power move higher.
Watch the video to discover all 4 phases of price action that lead to big moves. Also read the story below about KLAC.
If you have any questions feels free to shoot me an email. [email protected]
Pete
PS. Thank you Ozzie for the trade idea!
The Wild New Stock Exchange No One’s Talking About
Renowned market expert predicts this new exchange - set to go live in less than 60 days - could see the biggest stock gains of 2019.
KLA Corporation Shares Double After Big Buying
A gain of 104% in 2019 for shares of KLA Corporation (KLAC), formerly KLA-Tencor, tells a story of big buy demand for the shares. This buying is quite recent, and as the move to 5G ramps up, some top-rated semiconductor stocks could be rewarded handsomely.
We believe that the rush for this group is happening now.
A great way to uncover tomorrow's winners is to look for great stocks seeing big buy activity, and KLA Corporation could be just the opportunity. Smart money managers are always looking to bet on the next outlier stocks
investopedia.com/kla-corporation-shares-double
Chipotle menu relaunch will help extend sales momentum into 2020
Chipotle Mexican Grill Inc. shares had a blockbuster year, up 97% over the last 12 months, and SunTrust Robinson Humphrey analysts think menu enhancements will be key to maintaining the momentum heading into 2020.
Chipotle’s stock rally far outpaced the 29.7% gain for the S&P 500 index SPX, -0.58% and the 23.5% gain for the Dow Jones Industrial Average DJIA, -0.64% .
marketwatch.com/chipotle-sales-momentum-into-2020
Three best-performing S&P 500 stocks this year have something in common
cnbc.com/top-stocks-in-common