Another Trade – WIT
One trading strategy I wholeheartedly believe in is CANSLIM. I’m not going to go into details about the method, you can read about it at the link provided and all over the web. It’s a fundamentals based strategy that relies on great earnings and great companies. When I was researching CANSLIM months ago I stumbled onto Pitbull Investor. I used their free trial with demo trading and had decent results, somewhere around 5% in one month. I finally ordered the system a few weeks ago. It’s basicly a simplified version of CANSLIM with the addition of the cup and handle chart pattern. Every week their automated system publishes a list of stocks that fit their guidelines. The past few weeks have created very small lists and none of the companies jumped out at me. Then this weekend the new list was longer. I found two stocks that interested me, WIT and MEOH. Both are fundamentally great companies but WIT is in a cup and handle chart pattern. They were also scheduled to release earnings today. I used the rest of my cash account to buy WIT yesterday at $16.96. Today they beat the predicted EPS of $0.10 by $0.02, pushing the stock up over 4% to $17.84 as of right now. I’ll be holding this stock until it reaches the target of $20.62, it goes sideways, or I find a new stock that I feel has better potential.
