Just because I can’t put a stock on our Growth Stock List doesn’t mean we can’t own it. Check out StoneCo ($STNE) (August 08, 2019)


I want to look at StoneCo ( NASDAQ: STNE ) today. The company reports earnings next week; we held a training session today with Scott McGregor, who is one of the very talented guys that I work with here on swing trading. This was one of the stocks that we looked at and I noted that I have wanted to add this on the Growth Stock List for a while now, back when it was back at $34.00. The reason I really couldn’t was because they were due to report earnings in less than 2 weeks from when I had initially put it on.

Here’s the thing: That doesn’t mean that you can’t trade it, it just means that it doesn’t qualify for my Growth Stock List, which has done phenomenally well because we just don’t get into stocks just before earnings. But again, it doesn’t mean that you can’t trade it, I am trading it and so are a lot of members. We’re long the stock, I am. I took a smaller position the other day and just added to it today and this is basically the way I am looking at it.

We have this down here, you can say it’s kind of a cup I guess, everybody sees cup and handles everywhere, this could basically be looked at it that way. The issue that you would have if you are looking for the classic one is this is too steep of a slope, it really needs to up close to this last high here. So this is a little bit of an issue if you are just kind of looking at it as a cup and handle. But I am not looking at it this way, I am seeing this little volatility squeeze here, we’re getting a little breakout here.

If you look at the volume today it’s a little bit heavier than average but I think that this stock has a little bit further to go. Tomorrow is Friday so we will look, maybe, for another buck or two. But I have really got to feel that people, since they have already released their preliminary results, there shouldn’t really be any big surprise next week. I think traders are looking at this as a viable stock to buy up into earnings and maybe even beyond that. so I am long. If the stock breaks out above 40.00 tomorrow, do you know what? I will probably buy some more.

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