Told You So; HCA Climbs 10% In Two Weeks

I love being right.  At twopercentgoal.com we are swing traders.  Unlike day traders who buy and sell intra-day, a swing trader has a slightly longer time horizon, usually three days to three months.  My sweet spot is one week.  My goal is to double my money in the stock market virtually risk free within a year by generating a 2% profit each week.

That said, I made a recommendation to buy HCA Healthcare Inc (ticker symbol HCA) on July 31.  As of this writing (August 17), it has not had a down day this month.  On July 31 it opened at 353.75 and it climbed every day.  On Friday (August 15) it closed at 396.79, a gain of 11.9%; however, I also recommended increasing the stop loss to 388.80, which is one penny lower than the previous day’s intra-low price.  Its stop was triggered Friday for a 9.9% profit. HCA was textbook.  It met our profile perfectly.  Our goal is to generate a 2% profit, but occasionally our picks soar.

How do we do it?  Here is the checklist.  1. Only look at companies on the S&P 500.  2. Look at the company’s Relative Strength Index (RSI) to see if it is oversold and rising above the oversold range.  3. Go with the long-term trend.  When buying, make sure the 50-day average is above the 200-day average.  4. Look at the stochastic oscillator.  Make sure it was in oversold territory and has penetrated the 20 level and coming out of the oversold range.  We are now ready to buy the stock, but we need further confirmation.  5. Look at the on-balance volume and ensure it has an uptick or an uptrend.  6. Finally, the black line of the moving average convergence divergence (MACD) must be pointing upwards.  Both the OBV and MACD must confirm.  If either are only going sideways or downward, DO NOT buy the stock until both confirm.  All of these points MUST be met This is the criteria we use at twopercentgoal.com.

As much as we would like to say HCA is the norm, it is not.  Two percent returns are the norm, but occasionally, we get a beautiful pick that gives us further confidence in the model. If swing trading works for you, you can do this yourself or we can find the stocks for you.  Go to twopercentgoal.com and sign up for the daily email to see our picks poised for a 2% gain.  The email is free for the first 30 days and then $49/mo thereafter.  Good luck with your investments.

Al

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