From the StockTrader's Almanac, the six month period between October-March is when the majority of the indexes acheive their gains. When historians regard Nov-Apr as the theoretical ideal for index holders, the market tendency in the past few years is to front-run this historical precedent. If anything in 2007, the big money was piling into positions in late Aug and rotated through the sectors through mid September.
Regardless, I want to see if I can do a 3 week swingtrade on one of casy's stocks. ISRG is a stock that was off and on his list. The main reason he didn't play it was he was fortunate to get out before it hiccupped for two quarters. Medical equipment plays are similar to tech stocks because they depend on the momentum crowd. Their low share floats, when the markets are trending higher, make them decent gainers for somewhat short time horizons.
The market is down about 1/2% today but ISRG up 4% today on no news. Since historically they report their 3Q earnings between 10/22 and 10/30, my objective is for one purchase only. and to sell it the day before earnings. So I will buy 35 shares at the close if ISRG is green for the day. I will NOT add to the position and will set a stop loss at 9% from the purchase price. My goal is to sell the stock the day before earnings and looking for a 15-30 point move higher before the earnings release.
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