New Buy: (THOR)

I watched what I consider the best stock on my watchlist - (THOR) - throughout the day yesterday, and took a position after 3pm at $29.10.

I'm going to start including charts from the day I buy a stock, so here is how (THOR)'s chart looks currently:

I spend most of my time on weekly charts as I think they provide a more accurate picture of the price and volume action than a daily chart.

I owned (THOR) after it's big breakout in early August, and though I followed my rules and sold it when we went into a correction I've never stopped watching it. I believe it's held up through this correction as well as any stock in the market, and that's very positive. The fundamentals have not changed, it's still showing accelerating and triple digit earnings growth. Q3 earnings are due out on Nov. 1st, which means I'll have to build a cushion fairly quickly or get out of the position. In this market an earnings miss could be devastating.

Over the last month the stock has corrected it found support at the 200 dma and then the 50 dma, both positive signs. It came off the 50 dma Friday on 180% normal volume, another requirement for a purchase. I could've waited for this stock to make a new high to purchase it, but it's acted well enough I got in on the early side. If it continues to move higher I will add to my position.

I have a 5% stop on my position now, which I may adjust to avoid a shakeout Monday morning. I often take my stops off for the first 15 minutes the market is open to avoid a shakeout, and this practice has worked in my favor a large majority of the time.

-Geoff