Novacuire ($NVCR) is a superstar! Time to buy? (January 16, 2020)
NVCR OGI TLRY CGC
I want to look at Novacure ( NASDAQ: NVCR ). This is a stock that got a lot of play on Investor’s Business Daily today. It hit their leader board, a new buy point, all of that stuff. And it did, look; do you want to draw some lines here? The stock had a really nice channel break out. This is the high here, this is the high here, so the stock is basically breaking through this November high and coming close to $100.00 here. So what’s not to like about this? Look at the volume, over twice-average volume. So this is a really good stock and I think ultimately it goes higher.
But here’s the thing: I am just saying, the stock I up 12 percent today and it is right up against resistance and it has had all of this play in Investor’s Business Daily, which is about 100 times more influential on the price of stocks than the Wall Street Journal. And so this has a big play, a lot of people watching this stock now and obviously, trading and buying it. I am saying; if you are long the stock then great, stay long. But I couldn’t buy a stock that is at $95.00 and it is up 12 percent. I have to sit and watch it; I have to wait.
This is my suggestion: My suggestion is if you want to trade this stock you have got to let it go. You have got to say, all right, the opportunity to buy was here. I didn’t get that but I can’t buy it here, instead, I am going to wait. If the stock goes up a little bit without me that’s alright because there is another train coming really, really soon; there is always another trade. I am going to wait for the stock to hopefully peter out, maybe not tomorrow, maybe not until next week.
I look at this and I see institutional buying; this is institutional buying. I want to be where the institutions are but I am not going to buy stock from them, I am going to buy along with them. So wait for the stock to rollover or just to pause for a while; giving you some sense that there is a new equilibrium between supply and demand that is not up 12 percent and then that is when you are going to buy the stock. So you have got to wait a little bit, let this stock come to you rather than chasing the stock. That’s what I would do anyway.
We had several new members sign up the night before last because we talked about live trading. So I took members on a little live trading session yesterday morning and we made some really good money on some of the pot stocks; ( NASDAQ: OGI ), ( NASDAQ: TLRY ), ( NYSE: CGC ) most of which are up this year after the end of the year tax-loss selling. So that’s what’s really going on now. I think those stocks will ultimately continue to move; this is not just a one day wonder here. I think we are going to see a little more of a pullback here but these stock should ultimately start moving higher.
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