To see the performance of these top companies compared to the BLCN, I designed a chart beginning on March 24 to real-time.
ADT-ADT Inc. took top honors with a nice 189% return. DXCM-Dex Com. was next up 104%, SKWY-Skyworks Solutions Inc. was up 101%, then STM-ST Microelectronics up 74%. The laggard was GRMN-Garmin Ltd. up 66%. The benchmark fund SMSR-the green shaded area was up 73%.
Here are the action points: During this timeframe, four companies outperformed the index SNSR, while one did not. The leader, ADT Inc., ran well over 250% before profit trading hit. Seasoned traders do not buy and hold. Once a security peaks, they take profits off the table then watch for new entry points. This is what is going on now with the top performers in this group.
Finally, take the time to do your due diligence on each fund, which index they track, and its holdings. Spend time to research the balance of the top companies to see if one may be next to run like ADT, DXCM, and SKWY.
Once the companies are identified, set alerts to let you know when one breaks out. Then use the Simple Simon buy system to help with decisions.
In full disclosure, I do not hold any securities listed.
Plan your work, work your plan, and share your harvest!
DAVID O. ENGLAND is an investor/trader, financial analyst/educator/lecturer and Associate Professor Emeritus of Finance. This column is for educational purposes only and not intended as financial advice. Past performance does not dictate future returns. Questions? Send to [email protected].
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