The 4th quarter rally that began in late October remains alive and well, but don't be afraid to lock in profits here and there along the way. You want to preserve some of those hard earned profits. Hopefully, you've been leveraging with margin over the past month which can really accelerate your profits in a hurry. With a fully margined account, it's not uncommon to see your portfolio grow 20 - 30% in a single month during a powerful rally like the one we're experiencing. In one of my trading accounts, I've seen a surge of 35% in the past month by being fully margined. Yes, it's a great tool, but must be used with extreme caution. Just as quickly can you see those profits disappear with careless use of margin. At this point you want to be easing off margin and possibly consider moving some portion of your portfolio to cash.
With that said I want to share with you a couple of nice looking opportunities on the long side that have popped up while scanning through my database. Please, note that ERS is not yet included in the Breakout Tracker, but will be added this morning.
Here is the report
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Happy Trading! and Happy Holidays!