I love the word unhinged.
Right now a bunch of stocks are unhinged. Like Donald Trump does to the left and to sane people, stocks in big trends do that to ‘thinkers’ and people that comb for fundamentals.
If you do not work for SAC Capital or Millenial Fund you are pretty much part of the rest of the trading world. That means you live off scraps.
You know who else lives off scraps?
I love pilot fish. Pilot Fish eat for free. Of course, a dumb pilot fish is a dumb pilot fish…
If you are a basic trend follower like me, you surf for a few great ideas a year in the stock market. You keep an eye for breakouts from long bases. One that I had been long stalking finally started to work. When it finally broke strongly above $40 a few months back I took notice and shared in real time to as many people that would listen that this move could be the big one. So far it is.
Why is iRobot finally working?
The big investors have been clamoring for exposure to robots of late. In the public market there are few such plays.
My gut from watching thousands of breakouts each year is that iRobot made a lot of great moves that took a long time and finally got the formula right that is driving all the pilot fish (the institutions and the media).
Until iRobot now really disappoints, the dips will be bought.
Now that the stock has quickly risen 40 percent, I am part of the pilot fish group just keeping my eyes open for when the Great White turns sharply.
They always do. Sometimes they wait a few years and you can enjoy the amazing ride.
Today I fed the profit gods a bit. There is no one style to getting out of stocks.
Also published on Medium.