Looking for a quick 10% in 4 days? Check out StoneCo ($STNE) (November 15, 2019)
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The S&P ( NYSEARCA: SPY ) is really screaming, so is the Dow ( INDEXDJX: .DJI ), they’re working really, really well. A couple of stocks, actually, that I gave to Cramer a while back for Mad Money, Apple ( NASDAQ: AAPL ) is running like a mad man. And Microsoft ( NASDAQ: MSFT ) is also running up well. These stocks are doing great and there are others as well; AT&T ( NYSE: T ), which isn’t a Dow ( INDEXDJX: .DJI ) component anymore and for good reason, but it is sporting a 5.25 percent dividend and this works really well. So I am looking at stuff like this, there are just so many stocks that are working really well that it is kind of tough to be out of the market; and aren’t you glad you’re not out of the market?
I want to look at StoneCo ( NASDAQ: STNE ) here and this is why: This is a stock that I have been holding for a while, I have kind of traded around it. And then of course, when you wind up doing that, I’ll admit it, a lot of times I look back at the trades that I made and think, You know what? I really didn’t make that money from all these different trades. Why didn’t I just buy the stinkin’ stock and hang onto it and let somebody else do all the work? And so that is what I have been doing for a while and it is looking to me like that work is finally going to pay off.
The stock has just broken out of this triangle, I drew this line a while ago here to identify resistance, and the stock finally broke above it and held just today. You see here my notes, we’ve got earnings on the 21st, that is next Thursday so this stock has 4 more days to run and I think this could be a pretty good earnings runs; just a short-term trade. Even if it just hits $40.00, that’s over 5 percent, and you are in a good entry. That’s the one thing I guarantee you, there will be hundreds of stocks next week that run more than 5 percent between Monday morning and Thursday close but a lot of them aren’t giving you these great entries.
But in this case, I think you are buying StoneCo ( NASDAQ: STNE ) here, you can keep a stop, maybe a 3 percent stop on it, 3.5 percent stop. With earnings right around the corner you don’t want to own it if the stock starts pulling back. It kind of puts you between a rock and a hard place where the clock is ticking and you know you have got to get out, but you are not making money on the stock. Now the question is, do you sell for a small loss or do you just hang onto it and cross your fingers?
Crossing your fingers is not a good trading strategy, I promise you that. I have tried it when I was younger and it just never really worked but it did keep things exciting. Instead, you are buying the stock on Monday and you are keeping a pretty tight stop on it. If you get stopped out, too bad, so sad. But if you don’t you could make some pretty good gains between now and the end of the day on Thursday; so that would be my trade.
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