Here’s a new addition to our Growth Stock List — Check out Essent Group ($ESNT) (September 20, 2019)
ESNT
I want to look at Essent ( NYSE: ESNT ) today, here’s why: Entry is everything, I say that all the time. I would like to claim credit for it but I am absolutely positive many more people than me have said it. The bottom line is this, $50.00 is resistance on this stock. It has been that way for a long time. It had been hovering around here and there is another one, FND, Floor & Decor ( NYSE: FND ), that is about kind of in the same situation only it has not broken out.
So what I had done was, I looked at this stock and I had set an alert at, I think it was a little bit below $50.00 because I just kind of wanted to get a heads up on this stock. My alert fired off, sent me, this is through the Stock Market system, sent me an Email with the small clip of video that I had done on Essent ( NYSE: ESNT ) saying, “Hey, if it’s over 50.00, buy it.” Boom; so then I buy the stock and then we get a nice continuation move.
I wanted to show you this stock because I don’t think this stock is done going up. We have it on our Growth Stock List and it’s doing pretty well. The fundamentals are great; I like the technical patterns. So what you can do, it’s a little dicey after two day, two days the stock is up almost 6 percent in a couple of days. So you ask yourself, “How much more can it move higher before it has to rest?” I don’t know the answer to that question. I just know that on Monday, if the stock starts running to a new high, above say $52.00, you are probably going to see it move higher again into the rest of the day. But at some point it is going to stall out.
So if you are an active trader you go ahead and buy this Monday as long as it is up above 52.00. But if you want to hang out a little bit why don’t you let this stock go? Just let it run, do what it’s going to do, let the young whippersnappers make their money and then hope that the stock will ultimately come back down and give you a second chance. You are buying it down here again, and then you get to ride off into the sunset on the white horse.
That is the way I am trading Essent ( NYSE: ESNT ). I have a small position; I am going to keep it. I have got a stop right around in here; I don’t have it all the way down to the 50-day moving average. No way on a breakout, am I going to hold a stock if it falls all the way through the breakout point down through this cluster of congestion and finally out the bottom. That’s way too much room to give this stock. So keep a fairly stop on it and then just trade it according to the 1, 2, 3 phase volatility squeeze process that we do at Stock Market Mentor.
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