Take a look at Copart ($CPRT) and Ping ($PING) (November 14, 2019)
CPRT PING
Copart ( NASDAQ: CPRT ); this is a stock that has been on our Growth Stock List for a while. We’re up a bit on it, not a whole lot, but the bottom line though is, they are reporting earnings on the 19th; I always have little notes on my charts to remind me.
I think I have done this on a Free Chart Video; I certainly have for our members. I drew these lines just yesterday. What they were, are my kind of estimation, I am using my imagination, there’s a little bit of art that goes into trading because after all, we are looking at pictures. My idea was that, again, forget about what is going on today, as I looked at this stock yesterday right here, the company reports earnings next week, I see it doing this and I just couldn’t really imagine it running up very much between now and their earnings.
It has been in a little bit of a consolidation here, a nice uptrend, that’s why we are long the stock. I was just trying to temper expectations both of me as well as members about the way this stock would be trading. I even mentioned this morning, it would probably be kind of a little bit of a dud, where you wouldn’t really have enough profit in it to justify holding some over earnings but there is really no reason to be selling right now because you never know what’s could happen, right?
And so in order to kind of make that case what I did was, I drew some of these lines imagining what the stock would be trading like over the next several days. The idea was, by the time it got to the end of the day on Wednesday it would probably be kind of right back at this level, maybe down but not a whole lot. So instead, the stock surprised me. The stock is up very nicely today, over 2 percent, and if it closes where it is right now this will be at a new closing high.
The actual high for the top intraday is 85.90 so we will call it $86.00. This stock is actually very close to breaking out and with Friday and Monday and Tuesday to go before they report on Tuesday afternoon or evening we could see a lot more upside for this stock. I am just pointing this out to you because I thought you might like to know what my thought process is on things like this.
Trading is always an “if-then” proposition; it is always based on hypotheses. If the stock does this then it is probably going to do that. Therefore, I’ll buy or I’ll sell when the stock does blah, blah, blah. Not very many traders and certainly no good traders that I know will just kind of look at a stock and buy it and not have an idea. You have to have an idea of what a stock is going to do because only then will you be able to know whether your idea is right or wrong. And so with my idea being that the stock was just going to grind around here a bit. And then, that idea, at least so far today, is being kind of blown out of the water, I have revised my idea.
Now I think Copart ( NASDAQ: CPRT ) is going to move up a little bit. In fact, I increased my position very slightly this morning because of this move. So I am looking for a least maybe a couple more bucks of upside. Frankly, I am not really sure that it would be worth trading. If you are new to this stock, maybe you just got on the email list for my Chart of the Day Video, I am not really sure that I would buy it here as an initial purchase. But I have been covering this stock a lot and I know that a lot of our members, and hopefully you, have been long this stock from a lower point here.
If that’s you hang onto the stock, don’t sell it now. Let this thing run. Buy the anticipation sell the event. We could see some big selling at the end of the day on Tuesday. Or we could see some big buying; we just don’t know. But between now and then, which is all I really care about, this stock seems like it is ready to move higher. That’s what I would do, I would just hand onto the stock. And I am serious; I would look for 90.00 to be tested before next Tuesday.
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