Are you trading this security stocks as it works its way to new highs? Check out Cyberarc (CYBR). (October 29, 2014)
I’m going to get back to CyberArk ( NASDAQ:CYBR ) here. I had been talking about this breakout the other day, a new closing high, not quite as high as this one on the second day of trading, but still a new closing high, coming out of a volatility squeeze; just want to mention it again. A little reversal yesterday, but it really didn’t amount to much did it?
Let’s look at this pull back here yesterday was on high on high volume but lower than the day before. Now we’ve got an even lower volume reversal here, this is a little hammer pattern. I think what you do is take a little bit of this stock right now to get involved. Just have some in your account. You don’t have to take a big position, but I think you can have some. Then if or when the stock does start breaking out, start moving higher, then it really conforms to my IPO strategy where I look at the, what I call, because I can’t think of better term, the “enthusiasm high,” that’s like right out of the chutes like, “Oh my gosh, this thing is going to the moon, I’ve got to buy!”
Well it doesn’t go to the moon but it goes to a certain point and then it starts pulling back. After the pullback, once the stock starts trading above that enthusiasm high, think about it, what’s it doing? Every single day it’s at an all-time high and those are the stocks that you like to own. It’s fine to own stocks that have been beaten down a lot and then you say, “Wow! I’m a patient investor, I’ll just hold this for a few years and I’ll bet I make 10 percent on it.”
What I prefer doing is holding the stuff that’s just moving higher because that’s how you make money. There’s this thing, it’s like an old adage on Wall Street, you might have heard it, but if not I’ll mention it to you again, it’s actually what my brother Gary relies on a lot in his trading analysis because we all know what a great trader is. Gary always says the same thing, “Hey, isn’t it buy low sell high? Isn’t that, ya, ya, I think that’s it.” Sometimes it’s just that easy.
Now here with Cyber ( NASDAQ:CYBR ) you could say, “Well if you’re talking about buy low sell high then wouldn’t you want to do this?” Yes, if I could go back in time, take a magical space ship or a flux capacitor and go back here I would have bought it intraday, right down there, but we can’t do that. So the thing is, once the stock starts breaking out to these new highs my assumption, you know what they say about assume, but my assumption is that the stock is going to continue to make new highs because everybody’s a winner now.
So the stock is going to continue to make new highs, which means that I’m actually buying low. So just think about that. The bottom line is, I think you can get this stock, I think that it’s coming out of a squeeze and it’s going to be a really nice performer.
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