Keep/Add to the Winning Position, Sell the Laggard

Hello from Las Vegas. Las Vegas is hit with blistering wave of summer heat. It is hot hot hot. Folks look really sexy on the street ...

Market closed the last Friday with modest loss. The fact that a few big high profile stocks got hit hard combined with overbought market condition did not bring down much the big board shows how much stronger the underlying market is.



The market breath is in lock step with the big board moving higher.



Market is overbought in short term. In strong bull market, overbought condition is not the reason to sell winning positions.



My Port


BIDU



GMCR



NTES



CISG






EJ



CHLN




The following positions are sold,

CYOU

CYOU is too sloppy. The wide and loose price action is not something I like to see. Sell the position, move the fund to cash and other better performing stocks.



FUQI

FUQI offered the secondary essentially diluting the share value. There is no information on how much the secondary is priced. Sell now to move fund to cash.

In retrospect, I probably should keep 50% of the winning position.



ARST

The action is too sloppy. Sell!

A Day of Strength in Leaders

I came across this video and found it extremely interesting. Speaking of credibility problem, you think America is not full of it?





A solid day for CANSLIM investors. The theme of China is playing out. Many growth stocks are breaking out from the consolidation area. This bodes well for the continued up move of the big board.

Nasdaq Composite has been up for nine days in a row. A little rest is expected and should be welcomed.



IBD 100 index added 2.5%; IBD 85/85 rose 2.6%, all well above the major indexes. May leading stocks finally outshine the major indexes and lead the market higher? Time will tell ...




More leading stocks broke out and my soldiers are put on line

FUQI (Retail/Whlsle-jewelry, Chinese ADR)



BIDU (Internet-content, Chinese ADR)



EJ (Real Estage Operations, Chinese ADR)




GMCR (Retail/whlsle-food)



NTES (internet-content, Chinese ADR)




ARST (computer Sftwr-security)




CISG (Insurance-brokers, Chinese ADR)



CYOU (Internet-content, Chinese ADR)




WATG (Auto/truck-original Eqp)



TSRA

CHLN

A few other stocks, which posted solid gains, are on my watch list. Not surprisingly, they are all Chinese ADRs.

PWRD

VIT

UTA


Two stocks failed the breakout and I have cut loss after I bought them,

VPRT, TLEO.

more leaders broke out

WATG


TSRA


NTES

A Handful of Leading Stocks Broke out

BIDU



ARST



EJ

The Market Follow Through Negates the Short Term Head and Shoulders Top

The market resumed its uptrend on Monday.

The high volume surge today of major indexes negates the short term head and shoulders top formation. S&P500 came back above the neckline after it lived under it for 4 trading days.




The Nasdaq Composite, which is the leading index, broke above the 5 week flag formation on high volume.



The action in leading stocks overall continues to be muted. IBD 100 has been lagging in the entire rally from March 12 follow through. Though if bought right, profits can be made handsomely. Strong bear market rally can be very profitable.

Here are a few good ones broke above the trading range.

BIDU, TLEO, STAR, EJ.

Here are the top leading stocks continue to form the second stage bases,

GMCR, NTES, SNDA, VPRT, ARST, NFLX, CYOU, PWRD, AMZN, STEC, RVBD ...