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The Power Of Buying Stocks At The 50-Day

|Includes: BIDU, CMG, FFIV, Netflix, Inc. (NFLX), OPEN, SWKS
When the S&P 500 and the OTC Comp were both in nosebleed levels hugging trend channel resistance we talked about what happens to leading names when the markets pullback. We talked about the power of the 50-day average and sure enough that’s exactly what happened to them — they tagged the 50 day and POW ZOOM TO THE MOON ALICE.

We featured CMG, NFLX, BIDU, FFIV, OPEN and SWKS to our paying subscribers all this week.  One look at them now shows how the 50 day strikes again!

One such subscriber emailed us yesterday after he bought AAPL and CMG. We asked him what he was thinking when he did it and his response was: 

Sometimes you just have to close your eyes and buy, I sat back and let them come to me as you instructed over the last few weeks and after seeing them getting hammered quite well I said look if I’m wrong there are some decent supports just below where I picked them off at and am willing to sit should they continue down.

Good response we must admit, especially the part about willing to sit if he’s wrong.

Let’s take a look at those names, we all know them.

 

NFLX


Off the 50 day average level this issue has already put on 12 points through its highs.

BIDU

Off the 50 day average level this issue has already put on 8 points through its highs.


CMG


Off the 50 day average level this issue has already put on 20 points through its highs

OPEN


Off the 50 day average level this issue has already put on 10 points through its highs.


SWKS

Off the 50 day average level this issue has already put on 4 points through its highs.

FFIV

Off the 110 level this issue has already put on 12.65 points through its highs.

These grand slams to the 50 day are common occurrences that happen time and time again.
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