What Makes For Ideal Stock Picks?

An ideal stock pick would be a company that is not only in a strong industry sector, but that is a leader in that sector. Moreover, the stock would have just recently announced blowout earnings, and have a strong enough product or service offering (products in the pipeline, etc.) that its estimates for future earnings figure to be strong and growing, too.

The stock would have earnings and relative price strength readings in the high 90s and an A+ accumulation as rated by Investors Business Daily, indicating a strong institutional following, and would be setting up in a cup and handle or other equally explosive chart pattern.

On the day of its breakout above the stock’s buy point in the handle portion of the stock’s chart, the stock would easily amass four or more times its daily average volume. Then a couple of days into its breakout, the stock would follow through with another big spike in volume.