Pocket Pivot

Buys the pocket pivot from the O’Neil/Morales screen — an early sign that institutions are stepping in. The setup is a strong up day closing near the top of its range on volume greater than the heaviest down-volume day of the previous ten trading days, and all of it near the 10-day moving average. It often shows up before the stock visibly breaks out. A liquidity filter keeps barely tradable penny stocks out: the price has to be above 3 dollars and average dollar volume above 2 million dollars a day. Only shares our own deep-dive analysis rates green are bought — yellow or no analysis at all is not enough. The check and any new purchase happen every trading day; a position is sold as soon as the price falls 15 percent below its highest level since purchase, or the share drops off the list. If the list holds no green-rated share, the portfolio stays in cash.

This portfolio buys shares.