GSRTrades' Instablog

GSRTrades' Instablog Our research draws its market bias from a combo of Fundamental and Technical evidence. Economic and earning trends are matched against our analysis of price and volume charts, giving us an indication of how friendly or unfriendly the market is behaving. The goal is to identify top growth stocks primed to breakout of technical bases. This is active trading, not investing. Our holding periods can last a day to months. When the market is happy, we're buying top-ranked growth stocks picked for having a number of superior financial metrics that include: top earnings and sales, return on equity (ROE), institutional sponsorship and top-performing industries among others. We use patterns like the cup-and-handle and other basing patterns to measure our entry and exit points appropriately. When the market is sad, or prone to further selling, we're relying more on technical analysis as we get flexible with short-term trades driven by volatility. The Growth Stock Report started in 2003 as a way to share our analysis and keep it honest under the scrutiny of the public. GSRTrades.com is operated by The Church & Dodge Group Llc. of Laguna Beach, California. GSRTrades http://seekingalpha.com Grinding http://seekingalpha.com/instablog/430033-gsrtrades/105287-grinding?source=feed 105287

We're taking a recent boost in volume coupled with mostly sideways action as a sign that the rally is finding it harder to continue.

This type of grinding often sets the stage for a pullback, where we'll gauge its potential of being subtle vs. a more significant correction.

We're very eager to buy some of the hotter Growth Stocks out there at more reasonable prices. The market has been extended for some time now, testing the patience of wanting buyers like ourselves.

Stay tuned,

Dan, thegrowthstockreport.com ]]> Wed, 27 Oct 2010 17:59:34 -0400

We're sticking with a Buyer's Caution bias, though will turn it to Sell if we see some Distribution Days notched in.

Distribution, where volume exceeds the previous day and accompanies a price drop, gives us indication that institutions may be unloading. And that's something we don't want to be on the other side of given institutions' dominance in moving the market.

Stay tuned,
Dan, thegrowthstockreport.com]]> Thu, 21 Oct 2010 18:50:46 -0400

Bears have been waiting a long time for a significant correction. The fact that the day marked Distribution, where volume outpaced yesterday's, suggests institutions are taking cover.

We're going with a Yellow Flag Buyer's Caution bias in light of this selling. We want to pay close attention now to how recent leadership holds up to better guage the prospects of this being a mild pullback or something more significant.

Stay tuned,
Dan, thegrowthstockreport.com]]> Tue, 19 Oct 2010 18:10:33 -0400

Yes, the market has its way of screwing over the most amount of people as possible. Given the high short interest out there we can't be surprised to see Bears tested as the major indexes continue to ring new highs.

We're in the camp that believes recent high volume with lack of significant follow through, or grinding, is enough warning to lay low.

Like a tiger in the jungle, we only want to pounce when we know we'll get our prey. That's why we'll wait as long as it takes to get a broad market pullback, ideally setting us up for long entries in the plethora of recent Growth Stock breakouts.

Stay tuned,
Dan, thegrowthstockreport.com

Disclosure: flat]]> Mon, 18 Oct 2010 17:48:41 -0400

Growth Stocks have been on fire. We'll continue to hold our Buyer's Edge bias until we see recent breakouts collapse and heavy selling in the major indexes.

Stay tuned,

Dan at thegrowthstockreport.com
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For the second day in a row financial stocks (XLF) fall below major moving averages. Without the support of this key sector the rally is suspect.

Meanwhile, breakouts from select growth stocks hold up in support of the Bull.

Stay tuned,

Dan, thegrowthstockreport.com

Disclosure: Long: SINA, TSL, ASYS. Short: DECK]]> Thu, 23 Sep 2010 17:22:46 -0400

For the second day in a row financial stocks (XLF) fall below major moving averages. Without the support of this key sector the rally is suspect.