Welcome to the weekend! And you know what that means: It’s time for another round of trend following stock picks to keep you prepared for the third week of November 2016.
Just two quick housekeeping items before we get started:
- If you missed last week’s stock picks, you can check out the Nov 2016 trade ideas part 2 here.
- If you want to get notified of these trading updates, sign up for free stock picks.
And by the way, these really are ideas that I’m trading myself (or at the very least seriously considering). For example, when I published last week’s stock picks, I was already long BRK/B, and I ended up buying both of the other picks (ROK and LMAT).
Before that, despite all the fear and uncertainty of the election, I published a special edition of our weekly stock picks and once again ate my own cooking. The purchase of WIFI exactly according to the trading plan I laid out here has already yielded a 12% winner in less than 2 weeks. Not bad, right?
They don’t all work out this way. But it goes to show that these ideas are 100% actionable. And I want you to know these aren’t academic stock picks: I’m in the trenches trading these stocks. If I can do it, why can’t you?
Now, with that preamble out of the way, let’s cut to the chase…
Trend Following Stock Picks for November 2016 (Part 3):
Below are some of my favourite stock picks and trading ideas heading into the penultimate week of November 2016. I got stopped out of a few positions prior to the election, so I am actively looking to put money to work in these ideas.
The interesting thing is that I already own positions in many of these stocks. But my trading strategy allows me to increase my position size as the stock begins to trend in my direction. So this week all of the ideas below are stocks I already own but have either recently added to, or are considering buying more of.
First up is Texas Instruments (NASDAQ:TXN). This stock has been a winner for since the beginning of the year. And it finally looks to be emerging from it’s multi-month consolidation. Here’s how I’m managing my position thus far. If I hadn’t bought on the false-breakout at $71, I would have been buying come Monday.
Toro Co (NYSE:TTC) is another stock that’s been good to me. I first wrote about it on Seeking Alpha a few months ago. Since then, the stock has emerged from a long consolidation and is now off to the races. I added to my position this week and will keep it on the radar as cash becomes available.
One stock that I haven’t purchased yet, but am itching to pull the trigger on is Rolling, Inc (NYSE:ROL). I’d be playing this one for the breakout from consolidation. So I’m comfortable with a tighter stop placed just a few pennies under $30.
In this case, if ROL falls back into that trading range I don’t really want to stick around. I’d rather put my money to work elsewhere.
I know some people are scared to buy a stock after it has just gone up a lot. But when you see a big push like that, particularly in the context of a long-term uptrend, it generally portends good things ahead.
Think about it, if the market is rational and relatively efficient, why would a stock make such a high-conviction move like this (with bulls in control from Monday morning to Friday afternoon) only to reverse?
Anything can happen in the stock market. And I very well could end up being proved wrong. But I think the odds are good this stock will be higher in price 3-6 months from now.
Does that make sense? I just want to share some of the thinking behind my approach to the stock market. I know a lot of people like to pick bottoms. But I’m telling you that in my experience it’s easier, more profitable and more fun to buy stocks that are making new highs.
Here’s another timely and actionable example using a current trade:
Ross Stores (NYSE:ROST) Is a stock I’ve owned ROST for a few months now. And I’m actively thinking about adding to my position coming out of this weekend. The company announced strong earnings and now the stock is pushing to new highs on big buying volume.
To really help you see what I mean, let’s zoom out even further. Over the last 4 years, ROST has made many, many new highs. And my hope is that it will make even more. Given the quality of the business and the strong uptrend, I don’t think that’s a crazy bet.
So keep in mind: I think in a lot of ways, new highs are characteristic of a high-quality business. I know there’s merit in bottom-fishing. But don’t be afraid to buy great companies just because the stock price is going up. After all, you do want to make money, right? 🙂
Anyways, I don’t mean to pontificate. I just want to explain where I’m coming from when I share these stock trading ideas. So that’s what I’m looking at this week.
And by the way…
As a reminder, my intelligent trend following approach blends fundamental and technical analysis to zero-in on the most promising stock picks, and reduce risk.
Finally, if you want to get notified of future stock picks, I strongly encourage you to click the button below. You can expect to get one email each weekend just like this, with specific and actionable stock ideas.
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