Hi Marty!
I recently signed up for the service! I have a couple questions:
- Are the market leaders stocks which you have purchased and continue to track? -Have you trimmed some of these as they have gone beyond the 10% mark you mention.
- If they trigger a 5% stop, does it stay on the leader list?
- do you purchase options at all or only shares?
Thank you for subscribing to the service!
The market leading stocks are stocks that have been identified as leaders in their groups. I do own some of them but, certainly not all. If they present a proper buy point I will certainly buy, and if the allow an opportunity like NVO did when it pulled back to its 50sma I will buy. But, typically I own no more than 10 stocks and currently there are 21 stock on our leaders list. It would be like owning a growth stock mutual fund with 21 stocks in the portfolio.
Yes! I do trim some stock when they run 50% like CROX and ACLS. For one they become too large a percentage of the portfolio, and two it is always wise to take profits.
The stocks will remain on the leader list if they fall more than 5% below their proper buy point. I generally drop them when they slice their 50sma with volume. However, in 2022 I kept a few on the list even though they sold off down to their 200sma (VRTX)
I have one account (eTrade) where I trade options on level 3. I usually look there for unusual option activity mostly in biotech stocks. Today I see CPRX has heavy call option at a strike price of $17.70 with a February 17 expiry. Also, the March 17 expiration with a strike price at $20.00 call options have heavy action.
CROX also has plenty of interest in the call action at $125.00 and $135.00 for the February 17 expiry. More and more people are using options to trade their favorite stocks, and that skews the volume data. That is another topic for another time😂
I hope this answers your questions!
Thanks again for subscribing and I hope you find this service helpful for your trading career.
Regards,
Marty
