I made an initial buy today of the stock that I saw breakout yesterday - (MYGN). It was a small initial buy at $70.70 with a 5% stop loss. If I suffer that loss it will make up less than 2% of my total capital.
This stock made my screen yesterday as it staged a powerful breakout to a new high on earnings news (just the way I like it). The ideal buy point was $69.24, and it traded below that point for a time this morning. However, the market opened poorly, and I wanted to wait to see how the volume was tracking before making the purchase. I'm remaining cautious and would rather pay a couple percent more for a stock than buy it as the market is logging it's second distribution day in a week.
As it turned out, volume was running lower than yesterday so I went ahead with the purchase. This stock is in a strong group, is newly profitable, is in a 'recession proof' business (if there is such a thing and the chart looks strong. Growth forecasts are good as are the fundamentals.
Of course, none of this guarantees my a profit. However, I think it's a good candidate and my risk is managed as well as I know how so I feel comfortable with the buy. In the current climate I will continue to focus on risk management and capital preservation as my primary goals.
-Geoff
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