What do you do when you see the IBD Stock of the Day? You wait. You watch, and you wait. Check out Churchill Downs ($CHDN) and Saia ($SAIA). (October 09, 2019)
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I noticed, I think it was yesterday but it might have been the day before, Investor’s Business Daily had Churchill Downs ( NASDAQ: CHDN ) as its stock of the day. They don’t just find some stock that is moving a lot that day it’s a combination, it’s kind of like with the IBD 50 and some of the other work. It’s excellent by the way, excellent. They are looking at fundamentals as well as the chart.
A lot of times what I see is, when I see a stock featured as Chart of the Day or Stock of the Day the trade is already done. Here, it was featured on the 8th so that was this but you are getting it first thing in the morning so it was really here. The chart looked like this, the stock had actually broken out on this day, on the 4th, that was last Friday. So the stock is up here and somebody at IBD says, “Hey, this looks good. Let’s go ahead and feature that as the Stock of the Day”. And then, boom, that’s what you are seeing on this day. So it was great if you saw it first thing in the morning, at some point you are up 2 percent. But I don’t really care about that because like I said, the trade is kind of over at this point but that doesn’t mean the stock is over. Bring stuff like this to my attention and then I will continue to watch it.
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I’ll go through a couple of these because I’m feeling particularly saucy right now. With Churchill Downs ( NASDAQ: CHDN ), this is a classic volatility squeeze breakout, boom. A big move, high volume, massive volume the last couple of days and so I feel like I am late in buying the Phase 1, the first phase of the breakout. So what I want to do now is, I will keep my eye on this and I want do see it, at some point, pull back and then test that breakout. And hopefully, the stock does not fall below, say, this line, which is essentially where the stock broke out from. So if the stock pulls back to here and then finds some support, we’ll say above 125.00, that’s when I to buy the stock looking for that kind of move.
Other things, this stock, Saia ( NASDAQ: SAIA ), hit the Stock of the Day List on the 7th, that was on this day, on Monday. There is absolutely nothing here that is interesting to me. Nothing that is interesting to me but I am keeping it on the list because I know Investor’s Business Daily is tracking it. I am pretty sure it’s an IBD 50 stock, it’s in the right sector, trucking, there’s a lot of stuff going on now in that sector so it is one of these stocks that I want to watch.
The point is this when you are looking at Investor’s Business Daily be organized. Look at the stocks that they are covering and put them on a watch list. Write them down on piece of paper. Do something because those stocks can be money. But frankly, not often are they money right here, right now, right when you see the stocks. You have got to put them on the list and say, “Alright, I like this stock. I like the way Churchill Downs ( NASDAQ: CHDN ) is trading but I am not going to buy it just yet. I am going to wait for my train, that’s when I am going to hop on board.”
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