“When you feel like bragging, it’s probably time to sell.” — John Neff

Stock market investing is simple, really. You only need to make two choices: when to buy and when to sell. The unfortunate reality is that 75% of casual investors really only want to hear about the buy side. So, for those folks, you can stop reading now. This blog is addressed to the other 25%.

First, let me say that relying on your gut feeling that something is not right is a doomed selling methodology. You must always be ready to pull the sell trigger, but you also must know exactly what and why the catalysts are for that sell action to occur.

As I write this blog, the S&P 500 is up 45% over the past 16 months. Re-read John Neff’s quote above. The human nature of investors being what it is, we all want to focus on the buy side presently. But precisely for that reason, I believe now is the time to revisit your selling methodology. So for the next couple blogs, think of them as a refresher course on the sell side — this is my invitation for you to revisit your personal selling disciplines.

For the 75% of you that find this topic uninteresting or unnecessary, please re-read my Traders Journal about investing ‘face-plants.’ Over decades of teaching investors, the one tool I’ve used consistently in the classroom that always gets very high accolades from my students is the Action Sequence. I learned it from Dr. Hank Pruden at Golden Gate University, and I’ve taught the technique ever since in my seminars. The approach is straightforward. I give investors charts and they put pencil to paper — analyzing what’s in front of them, and then we analyze them as a group. Within the parameters of this Traders Journal blog, some adjustments obviously need to be made.

But before tossing charts at you (which I’ll do next time), I want you to get up-to-speed on selling. The easiest and fastest way to do that is to give you some homework. Here it is. In our book Tensile Trading: The 10 Stages of Stock Market Mastery, the ninth stage is Selling. Re-reading Chapter 9 will better prepare you for our Action Sequences. Selling exercises to come!

This reading assignment will be a good review of the personal investor issues associated with selling your positions, the technical tools we’ll use, and the various components you might consider including when assembling your own personal selling methodology. I can help you build it, but it has to be YOUR personal methodology. Otherwise, you won’t trust it 100% and you’ll be less likely to pull the sell trigger when the best time comes.

Remember that investing is like sports. You can have a tremendous winning streak, but a brief lapse of your attention or discipline can quickly result in losses or giving back a percentage of your profits. Consistency matters. A game plan matters. You’ll see how Action Sequence exercises also matter!

Trade well; trade with discipline!

— Gatis Roze

In this edition of StockCharts TV‘s The Final Bar, Dave wraps up his Dubai journey with a special Viewer’s Questions Mailbag edition! Dave explores whether LABU is on the path to mimic NVIDIA and if it’s still the right time to jump in. He also analyzes SSRM, unveiling potential risks and opportunities. Plus, Dave presents insights on volume intricacies and the VIX’s role as a predictor of volatility. Elevate your market knowledge with Dave’s expert insights!

This video originally premiered on March 1, 2024. Watch on our dedicated Final Bar page on StockCharts TV!

New episodes of The Final Bar premiere every weekday afternoon. You can view all previously recorded episodes at this link.

In this episode of StockCharts TV‘s The MEM Edge, Mary Ellen reviews the move into Semiconductors and shares what that means for Technology. Diving in to volatility, she highlights 3 ways investors can take advantage of the moves in Advanced Micro Devices (AMD). She also highlights other bright spots in the markets due to earnings, interest rates and other factors.

This video originally premiered March 1, 2024. Click here or on the above image to watch on our dedicated MEM Edge page on StockCharts TV.

New episodes of The MEM Edge premiere weekly on Fridays. You can view all previously recorded episodes at this link.

If you’re looking for stocks to invest in, be sure to check out the MEM Edge Report! This report gives you detailed information on the top sectors, industries and stocks so you can make informed investment decisions.

Feel like you never find those high-flying stocks before they make their big moves? This week’s edition of StockCharts TV‘s StockCharts in Focus is for you! Grayson walks you through the 3 simple steps he uses to find, track and trade the market’s strongest stocks – the same system that allowed him to pinpoint SMCI before it’s +200% gain! Learn how to take scans for stocks making new highs and schedule them to save the results into your StockCharts account automatically each trading day.

This video originally premiered on March 1, 2024. Click on the above image to watch on our dedicated StockCharts in Focus page on StockCharts TV.

You can view all previously recorded episodes of StockCharts in Focus at this link.

The S&P 500 and the NASDAQ both reached an all-time high today boosted by a Tech-fueled rally amid AI-related names. Small-cap stocks also had a bullish day after posting a two-month base breakout to near-term highs. This index has had a tough period recently, as nearly 15% of its stocks are in the Regional Bank group, which is down 9.5% year-to-date. Relatively high interest rates have also hurt, amid higher borrowing costs which lowered the growth outlooks for many of these smaller companies.

Daily Chart of Russell 2000 Small Cap Index (IWM)

Renewed interest in Biotech stocks is one reason for the recent rally in the Russell 2000 Index. This group accounts for 25% of this index, and positive clinical trials, coupled with the anticipation of more mergers of Biotechs with Large Cap Pharmas, has fueled the interest.

Gains in AI-related stocks have also contributed, led by Super Micro Computer (SMCI), which has exploded over the last 2 months. Below is the chart of another noteworthy small-cap tech company – CommVault Systems (CVLT).

Daily Chart of CommVault Systems (CVLT)

The provider of data protection systems, which helps companies recover from cyber attacks, posted one of their best quarterly results ever in late January after seeing subscription revenue gain 29% over last year. CVLT gapped up in price in response, and its four-week period of consolidation has allowed the stock to set up for another leg up.

Small-cap stocks are inherently more volatile, however, so I’d suggest keeping a close eye on the RSI for any hints of more than just a small pullback. With my work, I tend to stick to larger-cap names that can attract institutional  money, which can help lead to outsized gains. In fact, my MEM Edge Report identified 4 of the top 5 year-to-date winners in the S&P 500. In addition to adding them to my Suggested Holdings List in November, subscribers were alerted to precise buy points on any pullbacks.

These four outperformers have gains ranging from 34% to 66% over the past 2 months, and they are a part of the twenty other cultivated stocks from my report that are poised to continue to outperform these upward-trending markets.

My twice-weekly MEM Edge Report also provides in-depth information regarding sector rotation and broader market trends. Be sure and use this link here to access a four-week trial at a nominal fee. You’ll also have immediate access to prior reports that explain why these winning stocks are trading higher and how to uncover precise buy points.

Warmly,

Mary Ellen McGonagle

MEM Investment Research