$VNOM +21.23% in 4 Weeks n 1 Day

$VNOM  Growth  Stock  Story

Barron's had a detailed article on Mr. Jack Bogle (inventor of index funds).  He is a highly respected man in the financial industry for what he did for the passive retail investor.  Research however shows that from 2005 to 2017, traditional index funds have performed  + 8.4%  while actively managed funds have returned a measely  +7.2%.  For the etf's (trades like a stock), it is even worse with just  +5.5%  return.  Retail investors and traders who actively manage their portfolios can do better.  One has to put in the time and effort to be engaged with the market on a daily basis and research for Growth Stocks that Out Perform the Market.

$VNOM  is a Growth Stock.  Just 5 months ago (Dec 2017), it was just a  $20  stock and was trading merely 200,000 shares per day ($4 million trading volume/day).  Today it is a $31.78  stock (+59% in less than 20 weeks).  It is trading over 700,000 shares per day ($22 million trading volume/day).  What causes the stock to make a sudden move like this with over  5  times the daily trading volume from  $4  million to  $22 million within 20 weeks?  It is the institutions that have the buying power that propels the stock.  They account for over  75%  of the trading volume in the stock market everyday.  They leave behind a foot print and it is very hard for them to conceal their desire for wanting more shares of a stock.  That is how all the high priced Growth Stocks like $AMZN, $GOOGL, $NFLX, $FB, and $AAPL  had their start before they went on to make huge gains and out performed the market.

Let me highlight what I consider to be the foot print that institutions leave behind.  The only indicator to look for in Growth Stocks is  PRICE  and  VOLUME.  You won't know it unless you learn to train your eye for the what the seasoned traders and investors are accustomed to.  It's a skill that one acquires from constantly looking over 100's of stock charts every week.  

1. Dec 2017 ... trading 200,000 shares/day ($20 stock)

2. Jan 2018 ... trading 400,00 shares/day ($25 stock)

3. Mar 29th ... bounces off 50 day simple moving average in volume  + 35%  above average daily volume.  Market is in 'Correction' but the institutions favour this stock instead. 

4. Apr 5th ... Stock breaks out above its ideal buy point of $26.29.  Volume spikes to 2.5 times the average daily volume of 500,000 shares/day. 

5. Apr 11th ...   day.  Retail investor could have bought the stock to test out the market.  Market open price was $26.09 (20 cents below the buy point).

6. Apr 13th ... Institutions come in with volume of stock rising to 2.2 million shares (4 times the daily average volume)

7. Apr 18th ... Stock closes at $29.25.  Stock has risen  +12.11%  within 5 days from the    day.

8. May 2nd ... Stock gaps up with spike in the volume of 1.5 million (2.5 times the daily average volume).

9. May 10th ...   day the stock makes an all time high of 31.63.  Stock has risen   since the last  'Follow Thru'  day on April 11th (4 weeks and 1 day).

10. May 18th ... Stock spiked up past the resistance of $31.63 in volume +50%  above average daily volume (1 million shares).

11. $VNOM  has been trading along the 8 day exponential moving average ever since it bounced off the 50 day simple moving average.  Institutions have not given up on this stock.  There were 10 distribution days since March 29th but this stock has not budged or retraced.  That is a sign of strength in the stock.  These are the kinds of stocks that end up being a  $100  stock trading a million shares or more.

$VNOM is how a typical Growth Stock propels itself from a $4 million volume (Share price $20 x 200,000 shares traded daily) to $31.6 million (Share price $31.63 x 1,000,000 shares traded daily). These are the kinds of foot prints that institutions leave behind.  Learn to identify them and pretty soon you would start to out Perform the market as an active retail investor. 

Mentoring  Program

Our schedule for mentoring new students is filling up fast for the summer months.  There are very limited number of slots available.  Market usually takes a breather during the summer months and its an ideal time to refine your trading skills.  Secure your spot now before those slots fill up.

Happy Trading!

Amin