Did you see this pop in Edwards Lifesciences (EW)? (March 16, 2015)
We’ve got Edwards Lifesciences ( NYSE:EW ) here; it’s is a medical device company. First of all you can see the pop here, almost 10 percent. The reason is that the company announced that they had achieved good results for a heart valve implant that they’re working on and they are probably going to get early FDA approval, so that’s why the stock popped.
The reason I’m pointing this out to you is, if you’re a member you already know this, we have been following this stock for a while, because it has been in this volatility squeeze. I actually set a price alert that would flash when the stock started breaking out. It’s given us a couple of false alerts a time or two before but then of course it’s a false alert because the stock doesn’t breakout and we follow it and that’s that.
But then today, early on, the stock gaps up and continues to move and so we got a price alert on it; I know a lot of members jumped on it. If you have not taken advantage of these price alerts, members, they’re there for you. You get a copy of the video analysis so it’s not just some goofy price alert; it’s a delivery to you of that section of the video where I discuss what to do. So this turned out to be a really good trade and you’re able to take advantage of it. If you’re not a member of Stock Market Mentor try it out, you get the first month on us, so at least try it out and see if you can’t make some money on these alerts.
But if you’re not a member what do you do? I think Edwards Lifesciences ( NYSE:EW ) still has room to go. It’s had a big move here but just look at the pattern; it’s a long bull pattern, but over the past umpteen weeks or months the stock has been consolidating sideways, so this has more upside. This is not an exhaustion gap, it would be an exhaustion move, or at least I would suspect that it was, if the stock had been doing this, then started to run parabolic, and then moves up like this on this huge volume. Well that’s not what happened.
What happened is this stock had actually been drifting sideways for a while. By the way folks that own this stock, they’ve known about this medical device. Me, I don’t do this stuff; I didn’t know about it, not my deal. But I do patterns all day long so when the stock starts popping then I say, “Okay, this is a stock I want to be long,” and then after the fact, after the stock starts moving, you let the other buyers do the work, drive the stock higher. And then as the stock is moving up you look at it and say, “I wonder why the stock is moving?” that’s when you get the news.
That’s how you really want to be trading; you trade the move and then figure out the news later. Because if you just do the news the issue that you’re going to have is that the news is going to give you one bit of information and if the stock’s doing the opposite thing you’re going to be dealing with the news when what you really should doing is just dealing with the way the stock is moving.
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