CyberArk (CYBR) is still working. Let it work. (November 24, 2014)
I want to get back to our good friend CyberArk Software ( NASDAQ:CYBR ), an Israeli IT security firm; new highs today. I just think this works, I’ve thought that since this breakout, I think I have actually been covering it since this breakout, and it works. It’s what I call a good IPO strategy, which is one that I kind of invented just because I never heard of it before.
After a stock first starts trading a lot of times it’s going to get to what I call an enthusiasm high. Sometimes like in the case of Palm the enthusiasm high was the opening print and the stock goes straight down to zero, it’s like the worst thing imaginable. Usually you’ll get a stock, during the first couple days, sometimes the first couple weeks, where a stock will be rallying.
Then at some point, only after the fact, it becomes apparent that the stock has made like its initial run, it’s made its move higher. Now it’s pulling back and you use that high as a reference point, wherever that is, here we’re looking at this; so you use that high as a reference point and then you follow the stock. Because at some point, unless the stock pulls a Palm, goes to zero, at some point this stock is going to push above that level. And a lot of times it will do just this, it will push above the level and it won’t just keep going, it will push above the level and it will pull back.
Sometimes, and I can’t think of any examples to show you right now, there are many, sometimes the stock will do this two or three times, push up above it and then drift down. But it’s like this price, this initial, again what I call enthusiasm high, it’s like a magnet for stocks to come up to and to come down to.
But once the stock starts moving above that level, above here, well what’s it doing? Then every darn day is an all-time high, and what this illustrates to you is, all of these folks that wanted to sell have sold. Those that bought right at the top, essentially the profit taking, the loss taking from folks who bought at the highs and now are unhappy and they’re selling, those guys are all gone because the stock is moving up, it’s moving higher.
So here, like right now, I would look at $42.00 as new support for this stock. If the stock trades down a little bit below 42.00 then you’ve got to rethink your strategy here at least on this IPO type analysis that I use, but the stock’s working. After the kind of move that it had today, almost 10 percent, expect a little backing and filling, be ready for it, but it could very well just keep going. Because stocks, on flat days stocks don’t make 10 percent moves to the upside unless there’s some serious money behind it.
So this is one I think you just want to stay long. A lot of you watching this video hopefully have been long this stock for a while. I would just stay long; it’s working and as long as something is working just let it work. Listen to me here, sticking with a trade that’s working is a heck of a lot easier than finding another trade that you think is going to work. Be the lazy trader, if you’ve got a trade that’s working just let it work; don’t be so hyperactive that you’ve always got to find the next big thing. Sometimes the next big thing is just more profits in your portfolio from holding on to the last big thing until it becomes like a bad thing.
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