Frequently Asked Questions

Pocket Pivot Review / Buyable Gap Ups
Why was FNSR were not emailed out at the time earlier pocket pivots triggered?

Q: Why was FNSR were not emailed out at the time earlier pocket pivots triggered?  The price is quite extended here above the moving averages and taking a position on after the high-volume gap up when it came back down and found support at the 50 DMA on 9/9/10 (when the first pocket pivot buy point (PPBP) triggered) or as it broke through the short downtrend line resistance on 9/13/10 (when the second PPBP triggered).  I'm not saying FNSR is not going higher from here, but all three earlier points buy points would have been a less risky.

A: FNSR is a thinner, smaller stock. We like to see some confirmation of strength before deciding to buy a stock that is this small, particularly after it has just showed some very deleterious weakness as it made lower-lows before gapping back up over the 50-dma. Waiting for some signs confirming this is what we will do. We're not going to jump all over every little pocket pivot we see in every little 15-dollar stock - we want to see confirmation of more certain accumulation by big players. The point is not buy stocks for a 1-2 point move, but a 50%-100% move or greater. This is something inexperienced investors do not seem to understand very well. They focus too much on the 1-2 point wiggles and whether they enter at the top or the bottom of the wiggle, rather than waiting for the right time to come in and catch a potentially bigger move.

Published: Sep 17 2010, Modified: Apr 12 2012