As I sit here enjoying my delicious Chicken Parm Lunch that my diet doesn’t allow me to have I was just checking the “Stocks On The Move” on the front page of investors.com.
The first thing that stuck out was “Holy Shit, $RGR is up 12%. They must have crushed earnings. That was on my watch list a few months ago. Whoops. Missed that one. ”
The next thing that stuck out was even more depressing. $LULU is also up on big volume after reporting earnings this morning. As I scrolled down I noticed that its chart is a beautiful cup without handle pattern. Basically exactly what I generally look for. So why didn’t I notice this one?
The first reason I missed it is because I’ve been tunnel vision focused on $BEAV and $PCLN. As I discussed last night, I missed a bunch of big winners while wasting my time with the smaller, slower moving $BEAV.
But the second reason was even more interesting. IBD drilled into my head for months this fall that the winners in the new bull market would not likely be the same as the winners from the previous uptrend. It discussed how stocks like $AAPL, $CMG, and $LULU were late stage and told me to look for new leaders. I wish I wouldn’t have held so strictly to that rule. Once again I knew which stocks were going to be big winners, but didn’t find a way to get into them.
This is at the same time both encouraging and disappointing. It’s disappointing to miss out on big trends, but very encouraging to know how not to make the same mistake again.