Here’s my take on a couple of our Growth Stocks. Check out Coupa ($COUP) and CyberArk ($CYBR) (July 03, 2019)
CYBR COUP CYBR IGV CYBR
In my Free Chart here I am going to share with you my Growth Stock List. I am not going to spend a lot of time on this spreadsheet but you can go back and refer to it, just snapshot the screen or whatever. These are the stocks that we have on our Growth Stock List including the Date Added and what the current Market Price is and what the P/L has been. You can see all but one were profitable; some are close to being doubles. This is the kind of stuff you get at Stock Market Mentor. The list doesn’t always look this way but I have got tell you, all the stocks on the list, for the most part, are going to be winners because if they are not I take them off and replace them with something that is.
One of the things that I want to show you is one of these stocks. We could talk about Coupa ( NASDAQ: COUP ), which is doing really well. And all I could tell you on this stock was, yes, you should have been there when we put it on the list when we bought it, but that doesn’t help you. You look at the stock now, I think this thing can easily go to 150.00. It might continue to move, momentum, momentum is your friend. Once a stock starts getting momentum that momentum tends to stay longer than you might think it will.
My point on this one is, this is actually not the time to be buying this stock. You have to look at it and say, “Well, I am kind of locked out. I am locked out, I can’t buy the stock here. Not if it’s not using good trading discipline; because every so often the stock comes back and tests the 20-day moving average, rarely the 50 but the 20. This is the 20, even if I have to wait several weeks and then ultimately buy this stock here at the same price where it is now, as long as it is close to the 20-day moving average at least then I know that relative to the price trend of this stock, relative to that I am buying low as opposed to high, so this is what we are trying to do.
I can’t really talk about Coupa ( NASDAQ: COUP ) at this point other than to say if you are long the stock stay long the stock. But if you are not this isn’t the time to buy, this is the time to say, “Well, I will buy it next time when it gives me a good entry.” Or, “Gosh, I wished I owned it.”
CyberArk ( NASDAQ: CYBR ) is a different deal. We got this stock back here at around $90.00 or so, it’s working really nice from a percentage standpoint, we’re up 45 percent or so. But over the last couple of months it really hasn’t been working at all. If you bought this stock back in mid-May you could even be under water, depending on where you bought it. So by definition, this stock is in a trading range.
But software has been moving up. The software index has been working really, really well. You can look at this, this kind of broke out today. Again, this is the index ( BATS: IGV ), this is the ETF. You can buy this and do just fine but it has, like CyberArk ( NASDAQ: CYBR ), been consolidating. This is more of an actionable thing to me than Coupa ( NASDAQ: COUP ). Coupa ( NASDAQ: COUP ) is a, Gosh I’m glad I own it. Or crap, I wish I did own it, kind of stock. CyberArk ( NASDAQ: CYBR ) is a stock that you can kind of get excited about because you see the move that it made.
But let’s say you are not long the stock, well this is how you would trade that. You would say, “Alright, if the stock falls below this level then I don’t want to be long the stock because I am going to suspect that this is just going to kind of be one big topping pattern.” Well, a lot of the move of a particular stock is due to the sector, and so as long as the sector strength remains solid CyberArk ( NASDAQ: CYBR ), I doubt, is going to have a sell-off. It may continue to turn sideways for a while but I just don’t see this being a high-risk trade here because of the strength of the sector and because this is a pretty reliable pattern. So even if you are buying it RIGHT now you put a stop right down here and you are not taking a big risk, you’re not risking a lot of money.
I think the better trade, you would still be a little bit early, wait for the stock to close above Monday’s open of 130.81. That was literally the high of the day. Wait for the stock to close above that level. I am just going to put a trendline here for me and I will set an alert on this and then if the stock breaks above this trendline I am going to know about it. You can do the same type of thing here. Wait for the stock to close, close not trade, wait for the stock to close above this line. That’s when you are buying the stock and then you can even keep a stop down here, give it about 4.0, 4.5 percent. Once it breaks up above this line then it really shouldn’t fall back much below here. You really need to see the stock break above here then any pullbacks hold at the 50-day moving average and that is your trade.
Free Chart