If you are holding a Stock what would concern you? Breakdowns.
You may be carrying a Stock for Long-Term Investing or Short Term Trading. Whatever be your reason, you are in the Market to make a profit. And you can only make a profit if the Stock goes up.
Conversely, if the Stock drops, you will have a loss. And you know that, don’t you?
To blindly hold a Stock come what may is not a good idea. There better be a valid reason for keeping a Stock. And a good reason for owning that Stock and not another one of many possible Stocks. You could decide to buy a Stock based on #FundamentalTradingSystem or #TechnicalTradingSystem or a combination of both (as in #CUE360Analysis).
After you get the Stock in your portfolio, you need to track it regularly. And if the Stock is falling, instead of being rigid in your original assessment, you may take a hard look. Remember, you make money Buying a Stock only if it goes up. If it is falling, at some point, you need to exit, preferably taking a small loss rather than enduring a massive equity drop. Hoping that a Stock will eventually recover is not the smartest way to invest in the competitive Market.
Clear Breakouts downward is a warning sign that you may not ignore. And today, Tuesday, 24th April many Stocks in the USA Market broke down below well-established support; the CUE Memory Smart-Auto Trendlines on both Weekly and Daily charts. Here is one example.
The Stock is PWR in Construction & Engineering Industry. You could find the breakout using Sonar program in CUE Global for Metastock or CUE Elite for Tradestation®. It broke down. And you could find that out in real-time exactly when it happened using Sonar scan or dashboard; not after the fact.
What about PWR’s Industry? If you are keeping an eye on CUE Industry Rotation Scorecard or are using CUE Edge to get an early heads-up in real-time, you can easily see that the Construction & Engineering Industry Decelerated today. All you need is to read the visual heat-map. That is another sign of possible trouble for PWR.
The Stock broke down on the technical chart. Industry Decelerated. What about Fundamentals? Currently, regarding Valuation, it is Optimally Valued. You can see that from color coded Scores in CUE Stock Scorecard. However, there are warning signs in slowing Earnings Growth; it slowed down in the last quarter. Next quarterly earnings result is due on 2nd May.
These complete 360° Analysis shows you precisely what is going on in any Stock you are holding. And if that Stock is PWR, there seems to be ample reason to be concerned.
Are you carrying similar Stocks? It is then most probably the time to run a 360° Analysis to figure out the health of those holdings; before it is too late. And take action to protect your hard-earned capital.