Want to start 2018 off on the right foot? Here are 58 ways to do just that. Check out 58.com (WUBA). (January 02, 2018)WUBA
The market is up strong today; Asian stocks, in particular, were up pretty big. Asia, they had a weird way of trading last night, they were all buying. So, 58.com ( NYSE: WUBA ) is one of those stocks. This is one that I have been following lately, we actually put it on our growth stock list because it has pretty strong fundamentals with respect to momentum, so we put this on. It hasn’t really been performing too much for us, just trading right along the 50-day moving average. The Bollinger Bands, which I just use for down and dirty volatility squeezes, were at almost 8 percent, actually a little bit tighter than I would like.
It is also important rather than just looking at Bollinger Bands, it is just too easy to be doing that, you have to dig a little deeper. Here, if you are looking at these prices, they were WELL within the Bollinger Band range and in the upper half of the upper Bollinger Band range. Remember this is in the top band, this is the lower band. Where is this channel? Right in the top half. It really hasn’t come down into this level in a while. This squeeze was actually tighter than you might imagine. And then, Boom! we get this move today. It is up almost 7 percent; this kind of underscores the importance of patience. So we put this stock on the list when it was at $67.00. That was actually a pretty good trade.
Let’s say you bought it back here. The stock pulls back 10 percent but you still believe in the uptrend, you have to hold it all this time. But other than this one day, which is not insignificant, but, other than that one day this stock has been trailing right along the 50-day moving average. So you stay long this stock and my bet is, going forward, this tests $80.00, with this kind of momentum, it has got twice average volume, I don’t know how it is NOT going to test $80.00.
You have to look back at the weekly chart to see that, guess what? $80.00 is really the all-time high. It is a couple dollars higher than that, but who is counting? Also, since this was back in 2015, nobody cares. Only Wall Street Journal and Investors Business Daily. If they have a list of stocks at all-time highs then this won’t make the list until 83.71; but I say a breakout above $80.00, good enough for me. I am long this stock now and if the stock starts trading above $80.00 I will add to that position and I will feel darn good about it.