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Practice English Speaking&Listening with: Secrets To Mastering Your Trades In Any Market Environment

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okay hello everybody and welcome to investing with IBD for August 14 2019

I'm your host Irusha Peiris and with me in the studio today is Amy Smith she's a

national speaker author former host of the IBD investing show the original

ghost the coat the coat with my with my buddy Matt yeah exactly Matt Galgani and

also the market wrap videos - yes did that for a number of years so it's great

to have you here Amy oh well thank you for having me and well you have me

on a day when the Dow is down 800 be exciting exactly on today's podcast

we're gonna talk about unfortunate we'll talk a little bit about the markets yes

but we'll talk about investing at a black belt level and we will of course

and the episode with a few current stocks but before we get into the market

because I know Amy you love talking about when the markets when they're down

800 on the Dow let's get into your background and how you got into

investing because you've been doing this for a long time we've known each other

for a long time but how did you get into IBD and into investing and the strangest

way that you would never believe of course so I was doing a lot of fitness

training and someone asked me about this product called relive now there's a

thousand supplements on the market now but at the time it was kind of a one of

the early ones so I went and I said well I don't know it's traded on the stock

exchange I guess I better go look something up about it so went to the

newsstand and there was an IBD there and I said how investor's business daily

okay so I picked it up and inside when I was looking up that you know because I

had no idea ticker symbols how to look stuff up nothing at all so there was an

ad come see Bill O'Neil free there was an event in the valley and so I went and

then everything made sense to me like every single thing that he said about

the stock market but it was good for me because my slate was

clean I didn't have like value investing in my head I was really a clean slate so

I believed everything that he said yeah and I took my pen he made his mark up

the paper he made a circle parts in the paper like new highs the stocks that

were breaking out and of course this was the 90s so I went home and I said oh my

god this works this is so fabulous it really works and my husband said this is

amazing and that went all the way till the year 2000 and then we know what

happened I had to go back and really learn that I think at that point weren't

we both on the same curve there yeah had to really go back and learn how to

invest it we really read the charts really do the work because it wasn't

just stocks making new highs and all the tech names and everything he got a lot

harder after that oh yeah - 2000 was a nice wake-up call it's like wait a

minute they mean the stock someone always go up I know wait what happened

to my portfolio right exactly right and then you know it's weird so I joined

Santa Monica meetup and that's how you and I met and we were there for years

and years and years together and one time bill O'Neil came and I was helping

out up front Mike Scott was presenting and so bill was in the back they said is

that Bill O'Neill back there is that bill yeah he didn't tell anyone he just

showed up like an attendee and everybody recognized it and so if there was like

this murmur that went through the meetup here that bill was there and so anyway

we talked for a long long time outside I got to know him a little bit then I got

to know you know the MarketSmith folks used to use Santa Monica meetup as the

guinea pigs quite a bit for testing so I got to know a lot of people here at IBD

and one day they called me and they said would you like a job and I said well I'm

enjoying investing and they said well you can do both why don't you come here and

do both so that's that's how I ended up here and and one of your jobs was to

help grow the meet ups yeah so bill and I that was you know looking back on it

when you're working so hard you don't realize how much you're learning right

but opening up the 50 meetups with Bill and hearing him speak repeatedly over

and over again it was the repetition of that that just it was an amazing time of

learning and plus I got to spend so much time with Bill and look at charts and

talk about stuff so we opened up 50 and then we started attacking you know

the whole us along with my previous co-worker here that opened up a lot so

yeah opening the meetups is a lot of fun - yeah and then and then you wrote a

book you wrote how to make money in stocks success stories what what ones

are those in so if you have a suggestion be careful if you go to your boss and

you suggest something to them and they like the idea because then you have to

go you have to go write the book I said Bill you know we've never written about

our success stories and so let's write about the people that have done so well

and I said I wanted beginners intermediate advanced people hedge fund

managers and you know it just ended up he said I love the idea go do it so I

wrote this book in four months well yeah which meant I was working here full-time

and I went home at night and I wrote and I researched and so it was it was a fast

four months and it was a great learning lesson because a lot of this the the

people he spoke to in the book right who were interviewed great learning lessons

there yeah there are comes the best way to learn is to learn from others who are

along the path not not always at the top they've reached the peak right you know

they're along that path and they're stumbling and learning from the mistakes

and you can learn along with them so it's a great book if you don't have a

it's it's someone that can help you get through the learning curve a little bit

quicker and you get to see what mistakes they made and you know how you can

correct your own mistakes and what they've been through in it now there's

some really great lessons in the book so I was very privileged to feel like I got

a chance to do it so and it was a lot of fun

definitely yeah now let's let's talk about something that's not as much fun

well so the markets weren't burnt very fun today and and so the most indexes

were down 3% yes or so but what made me even less fun was yesterday we had a

follow through day exactly now this looked like a textbook follow through

day too cuz where the Nasdaq was up 1.9 5% S&P was up 2.2 we had volume higher

across the board all of the major indexes were

up it looked like it was it was a good follow through day with a couple of

exceptions that I'm gonna get into because I didn't buy it yeah I wish I

could say the same thing but I did buy it but really just to make sure

everyone's on the same page the falter day it is a signal that okay maybe the

markets are starting a new uptrend here and and so this is the this is the

signal we look for now as we all learn not all fall through days are gonna work

but if there are things to buy if there's something to buy you want to put

some money to work so you get that feedback and bang unfortunate you put

someone at work yesterday you got a little bit that feedback today but yeah

so we had a distribution day on the distribution day and usually when you

get a distribution day and what the first three days after Father's Day

pretty it decreases the odds of it succeeding succeeding and then also I

was talking to Justin Nielsen who's been on the podcast a number of times and it

was a longtime assistant of bills learned a lot for their market school

study that they did over studying faltered days and distributions and all

that stuff he told me today that if you have the next day if it undercuts the

low of that fall today that's also another reason to be more cautious right

at this point so so the odds of this fall today actually working or

definitely less does it does not necessarily mean that's a hundred

percent grand sale but you want to be a little bit more cautious and make sure

you have your more on the sidelines than not well and this has been really a

chopping news driven market anyway you could say kind of it's tweet driven you

could say that it's been tariff driven it's been able to turn on a dime part of

the problem was even with the follow-through day yesterday we the

Nasdaq was still hitting that resistance at the 50-day we still were the Nasdaq

was below 8,000 you know we had this light volume recovery and I wanted to

kind of speak to that that not necessarily I've seen on some of the

threads people discussing that yet was we've we sold off if you take a look for

instance of the chart in the Nasdaq you can see the much heavier sell-off and on

the way up we haven't had as much upside volume however if you go back to

December when we took off the bottom they were look at the volume as you and

we're looking at our charts right here you can see the heavy volume saw

sell-off and we did not get the upside volume that you would anticipate on the

way up so an uptrend can work even though you don't have continued upside

volume true true now with the at the end of December that was really kind of a

third wave down and so you had even that and what when we have that from

September to December of 2018 there were to fall for days that failed and then

third one worked and and so then it was rallying on lower volume there but you

really had a in the end that third kind of waved on where you went into with

December 24th the Christmas Eve Mass exactly where you had you really had

kind of a capitulation everyone threw in the towel here we're kind of still new

highs and stuff like that so so it's a little bit different the other thing

that you see when we came off the bottom in December you you know part of it as

we look at how many stocks in the entire market are really working and how many

stocks are taking off and you know I have to say yesterday you know we're

supposed to buy something on the follow-through day we had zero stocks on

the MarketSmiths screens that we run zero stocks breaking out near the pivot

we had only five it was really a lean group of stocks yeah the the recent

breakout screen that we run in MarketSmith came up with fifteen stocks and

even though those aren't really falling apart they're not making a lot of

headway either that tells you what's going on in the general market yeah yeah

so you had that now another thing was that with that correction that we had

and maybe we're going to continue this correction it was in a long correction

right it was a short amount of time so it wasn't a lot of time to build basis

but now another like Dow maybe have have more time to build basis what Lee Tanner

of course Moses of the meetups that we know you pointed out that there have

been six is a little bit outside of Can Slim but there's been six Hindenburg

omens in the last couple of weeks and that's an indicator of how many stocks

are making new highs and new lows oh so what you have is a really bifurcated

market and that means that there's indecision so you have some stocks

making new highs you have a whole group of others making new lows it doesn't

show that the professional investors are really convinced which way to go

in the current market so I just thought that was kind of interesting yeah stock

pickers market I think that that's for sure it's a narrowing leadership so you

have to be that much better at picking the stocks but good news is that when

you're studying this system Can Slim does a great job identifying those

leading stocks absolutely and you know people should not walk away just because

the markets choppy because you and I both know it can turn on a dime

a lot of things can happen you know there's been a lot of talk about the

inverted yield curve but even with the in the yield curve did invert we usually

have about 22 months even if we're going to go into a recession

the average is 22 months before we get into a recession so people should not

walk away now if we still have 22 months theoretically right now the nice thing

is when you look at price and volume every day and every week you don't

necessary about those larger macro you keep in the back of your mind but you

still let the market tell you what to do because if we got that falter day again

or say we take another leg down then we get another fall today that's what I'll

try it again if there's something to buy right you know because one of those are

gonna work and then you start getting that feedback yes absolutely I'm not

gonna we're not going to talk about the inverted yield curve but unfortunately

it has been accurate the last 50 years oh yeah this is something that we do

have to watch and pay attention to but it it doesn't mean that we just go away

from the market that's usually what happens people get worn out and about

the time they get worn out as you just mentioned in December then that's when

the market will take off again so it's a good time to study too if the market is

choppy it's a good time to go do all your work get caught up keep your

watchlist up-to-date perfect perfect so the market right now is under pressure

and we're not what we're in that indecisive moment that Amy's

talking about right here next couple of weeks are gonna be critical to see if

this rally can regain its funding or we take the next leg down

absolutely so let's take a quick break but when we return we're gonna talk

about what we need to do for all of us what we need to do to take are investing

to the next level stay tuned hey everyone it's Irusha here

now first i want to thank everyone for listening to the show we are always

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we're back with Amy Smith on investing with IBD

so Amy let's gettin to investing in how you get to a black belt level which of

course we know that we all want to be well one of the themes my kids were both

black belts at they are black belts intact mono so I decided that to write

the book I would do well what about if we were like white belt investors and

then yellow belts and we haven't do our testing and we go up and then we become

black belt investors and of course those are at the very end I have hedge fund

managers and people like that so how do we become black belts well I guess the

first thing that we all do is we have to study but I thought this Muhammad Ali

code is in my book champions aren't made in gyms champions are made from

something they have deep inside them a desire a dream a vision they have to

have the skill and the will but the will must be stronger than the skill that

that's the perfect quote for investing

and hopefully that you know everyone's having that will especially with this

disappointment over today you know and and it's not easy especially these last

number of months hasn't been easy in the market yeah I do have that that will to

kind of keep fighting through and and you know knowing that there is going to

be a better day a better trend out there to make money and make sure that you

have your rules and everything that I guess the first thing I took different

key points that some of the black belt investors said

you know first of all there's a learning curve so you have to dig in you've got

to do the work you've got to do the education if you're gonna be a tennis

player this goes back to like what Bill always said to us you know you have to

practice so the first thing would be to dig in and do the education to read the

books there is a learning curve and always be prepared for the next great

stock so that's part of our routine to stay on top of things

things like that latch onto a big runner winter and ride it like Bill now that's

easier said that one yeah because it's funny when you're going through that

learning curve the first couple years you're gonna get down the buying part

right right and you're gonna be in a lot of these great the next great growth

stock right like everyone else it's just

a hard part for everybody look for new trends there's always some new trend out

there there always is you have the shoes solar technology what are the gada habit

items you know the square I would see the taxi drivers when I would travel

using the square on top of their phone so I said that's that's like everyone's

using it uggs boots I remember when my daughter was in middle school and I was

like what are all those boots that everybody's wearing she's like those are uggs and I ran home

and I realized that deckers outdoor was selling them in decker stock took off

yeah you know I remember when I moved to Los Angeles in 2007 I was from Boston I

couldn't believe that there are all these women walking around in uggs boots

like yeah they're like though the snow boots they're deadly things like why are

someone walking around in 85 degrees my first la lesson triple digit earnings

that was something that that week heat in here and you know LinkedIn for

example but before it took off it had six out of seven quarters of triple

digit earnings and sales so when you see a stock like that which is it those are

the rarefied ones yep that's something to look for learn from your mistakes and

missed opportunities and of course that I'm sure you've done lots of webinars on

post analysis yeah for sure and definitely have had made plenty of

mistakes on the and sometimes you have to make

the mistakes over and over again right before you say oh you know there's

probably a learning lesson here that I probably stop doing right am i buying a

little bit too early am i selling a little bit too late am i you know what

is it that I that I'm do I have a pet stock that I've got to keep that I won't

let go of so know when to go to cash or at least reduce your exposure which you

know when you have a market like what we had today you know there's there's cash

as a position and there's no harm and pulling back a little bit if you're if

you buy something and it's not working that's why we have sell rules so that it

protects you and you're safe in the market yeah and the markets gonna give

you feedback all the time yes it's yeah you just have to learn to listen to the

market and and in the beginning of the year you know when the markets are

trending well you were right a lot anything you bought was going up for the

most part over the last few months been wrong a lot more or you know been

struggling it's been harder to I keep keep hitting new highs in your equity

curve and instead you're giving back and you're giving a lot back at times too

and that's what happens I mean you and I both have been doing this long enough

you know when it's easy in the beginning of a new Uptrend after you've had a

correction maybe a bear market it seems like everything's working and your

investing is going well and the portfolio is looking great and you know

it the longer you are in the trend it gets a little choppy when you get to the

top and things are more difficult so don't let that discourage you if that's

been happening to you avoid emotional trading which is this is why we have

rules because it they like today can make you extremely emotional I mean you

can go oh my god you know the Dow is down so much so you have to be careful

about that know the story of a stock that's a big one

yeah you're never gonna hold on to a stock because there's gonna be plenty of

times where the markets are gonna come in pretty hard right and but in the and

you know and that's the hardest part is not necessarily it's one what if your

stocks pulling back is that all of your stocks pull back right exactly and and

so knowing what stocks to hold on to right and what stocks to cut right you

know that all comes down to understanding the stories which ones are

the game changing ones that's right that's right we're

gonna have garden-variety stocks and I'm all for buying the garden-variety ones

but you know what we're really looking for are the game changers but the

problem is you're not gonna have a portfolio completely full of game

changers I think you want to be cautious about that maybe you want to have some

of the big kept 20 stocks so that your portfolio is a little bit more stable

yeah which I guess that gets into more portfolio management but speaking of the

PM's the portfolio managers when I interviewed Mike and Charles two of the

elders here when you enter a stock always have a plan and that's something

you know over the meet-ups we talk about this a lot you know when are you gonna

buy when are you holding what is your when you're going to sell what is your

what do you hope to gain and of course most of the time with CANSLIM we know

it's 20 to 25 percent but you know you may have a stock like square and you may

not be taking profits at 20 to 25 percent because you realize you have a

big winner on your hands so it's knowing how to handle those better the bigger

winning stocks yeah and it's not to be all there none if you have square and

you're up 20% and you wanted to take some you know that it's also a

game-changer stock take some off the take separate hold hold some and now if

it pulls back at least you sold some right yeah right and and so at least

that keeps you in the game allows you to have been flow and you don't have to be

right all the time no you don't you know built and so it's so funny and most of

my talks with him he said you know I was like a B or C student I you know I'm not

a genius or think week maybe debate that but you know he just said I have my

rules and he does not he can be wrong so many times in the market and he just

will sell you know he'll come in and he would have talked with me about a stock

and say oh what about so-and-so I said oh that that was two weeks ago like I'm

on something else so if it doesn't work you know do you just have to you just

have to realize that and make the changes yeah let's get into that routine

a little bit so say we go into a correction right here right now what's

what's the normal reaction for for a a white belt or a yellow belt right there

they're gonna they're gonna put their head in the sand or they're gonna walk

away all this investing is hard right where someone who's more experienced

realizes I need to keep that routine I need to keep doing my routine

regardless of market environment it's better you know it's fine my kids went

to Catholic grade school and you know the the sister the principal used to say

everyday everybody does better with a routine and be consistent about what you

do you know so I think I think even Jesse Livermore said that you know

traders need to be like athletes in many ways you follow you watch you're eating

watch your exercising you do your regular routine and you just kind of

keep doing it no matter what the market is doing so true yeah which is easier

said than done if like between 2000 and 2003 yeah it was kind of a tough period

of time exactly but okay you already talked about some of this assessing your

strengths and your weaknesses and you're talking about some of the things when

you do a post analysis that's when we can see what our strengths and what our

weaknesses are that's always the post analysis is always the hardest thing yes

we'll see what you did yeah but it was a good stock yes great stock

why do I keep getting in and out of this stock detaching your ego from your

trading which is you know we can go through a period of time where we're

trading so well and like oh we're just trading so so well and then that can

make your ego inflate and you know maybe you tell your spouse or somebody that

you're doing well which is a bad idea and then you kind of keep trying to do

well instead of allowing what the market is going to give you yeah so that's

you've got to get your ego out of the way the best traders are detached from

their results so even if you get eight hundred percent gain try to detach

yourself from that and focus on you know another thing here's something that a

lot of people talk about in the meetups a written trading plan yeah you have

some of your rules written down right yeah so I do have a know where my rules

written down and yeah so you have to do that it's kind of like goals to write

writing down your goals and all that right yeah so taking the time to do that

it's a big part and then also following your rules yes you have to follow well

you know what Bill when some of the guys were young some of the young portfolio

managers he would have them take their written trading plan and read it every

morning before the market opened yeah so they were really in touch with what they

were supposed to be doing yep which is really great well

could we could go on and on I'm sure about all of this I mean I thought about

some other things maybe next time we talk about things I've learned from Bill

right some of the things I've heard him speak so many times some of those things

we could talk about some of the articles he did in the paper where he really took

us through the things he's looking for yeah yeah in the end it's it's it's it's

not a surprise right right it doesn't matter if you're training or boxing or

your martial artist right really the core concepts are the same you got to

have good routines good habits and you know just those best practices and learn

from mentors too right and and that's gonna help you take it to the next level

and so in investing make sure you have those good drinking's down good habits

that transfer and down yes and and that you're gonna start seeing that

improvement when the markets are actually ready to hand out money that's

always ready that's right to hand out money

so remember Corrections are opportunities so if we go back on a

correction they truly are opportunities as long as you're protecting yourself so

don't drift too far away when the markets are disappointing where things

are going not as well and you know I had one more tip you know some people always

ask me well how do you know where the market is going how do you know if you

go through the market Smith growth to 50 that's one great way to see what the

while all the stocks are telling us but another thing you can do is to go

through the IBD the list go through the IBD 50 the big cap 20 the sector leaders

go through those lists and take a look are the stocks setting up in bases are

they already extended are they trying to break up and not going anywhere so

they're fizzling --zz that mean there's a problem in the market if if these

breakouts were working that's how we know we have a successful fall today we

have a whole bunch of stocks they're all taking off together

stocks are breaking out the indexes are working that's when we're in a good

rally exactly and and that's going to tell tell us the environment the

underlying strength or weakness of the robbery so speaking of current stocks

they're gonna come up next after this so stay tuned

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investors.com/podcastoffer right now and get your first two months for

only $20 Amy Smith is our guest on investing with IBD and so Amy let's take

this a little bit further and get into some current stock stocks yes absolutely

and there are some you know we so we don't want to be negative nancies here

so there and this is where the opportunity which ones are holding

holding up exactly so that you know and a lot of stocks actually did hold up

today which was you know kind of positive so the first talk we're going

to look at is Roku Roku Inc and yeah so ticker symbols are okay you and you know

this is and there's this whole phenomenon that's when this whole trend

you talked about trends in segments to the court cutting trend yes right over

the last like seven eight years Oh everyone's cutting cable right you know

all this stuff and Roku is one of the beneficiaries of us where they have they

have their little device that that you can just plug into your TV you can get a

lot of these apps on it they're kind of neutral device so you're not necessarily

committed to Apple or Amazon you can get your Netflix on it so they've really

built up a pretty strong following it's pretty amazing they've been they were

one of the first devices to come out and the all of a sudden you know Apple got into

the the space Amazon down to the space but Roku's kind of offended them off and

and they in a crowded field very crowded Disney I mean with so many of these

different choices out here yeah so they've just they made it their own

you know so when you think of cord cutting you think of Roku a lot right so

they've developed is really strong brand name over the last number of years

they've integrated their services right into the TV so you don't even need the

devices anymore by the way do you have I have one of those little devices we have

like I think we have four different controllers to go back and forth on our

TV yeah so you know it would be nice to not have maybe Roku could solve some of

those problems for you baby but so it's just an easy way to get

access to a lot of your normal TV session right that you could get it

before they have been one of the best stocks in in the market right over over

the last what three four months really over the last year when you when you

look at their their their chart but I probably want the best stocks over the

over the last month or so well it was kind of impressive here Bruce so we've

got a consolidation a first stage of consolidation we've got a breakout here

in May 2019 this year so yeah they broke out

they broke out on may 9 May night and then we had a nice run it stayed well

above the 50-day you know holding nice and tightly above there and then it

really jumped up recently as it reported earnings now we have to we have to

comment here there's a couple of stocks that we see once in a while they do not

have earnings numbers but they have the sales numbers yeah actually a lot a lot

of the a lot of the cloud stocks this past year so we have a little bit

outside it can slim here now one thing I want to point out is when they were

reported earnings here they had an earnings beat of 63 percent and it is

the earnings surprise that will cause these massive viable gap ups but this

was a viable gap up actually even though it was it was in not a proper base but

it was it was pulling back to the 50-day so you could have gotten it off the

50-day there and of course we had massive volume that came in as the stock

was moving higher that's a sign of the institutional buying and we have the

accumulation distribution rating of an a-minus which tells you that that's been

under institutional buying one the only weakness here even though it's a hot

group as you were describing Irusha it's the the group strength is a little bit

weak it's like a c-minus usually we have groups are a little bit stronger than

that but but this is like the stock in the group this is the the

to look at that's true there than the leisure movies and related industry

group and and out of 197 they're ranked 128 so yeah so sometimes you have kind

of the one star stock that can overcome everything and you know even though

they're in the leisure movies group really with all the other members right

because they're more kind of the like the gold rush everything's going up to

the gold the ones who made the money or the the rates and shovels right yes

they're the ones kind of like it doesn't matter which what program you want to

Netflix or Disney we can give them all to you yeah and that solves a big

problem it really does now this is also a newer IPO in September 2017 so

oftentimes we will see you know those newer IPOs that are there some of the

stocks that end up popping in the market yeah so this one is an interesting stock

and I wanted to point out here it had an up/down volume ratio of 1.8 you want to

speak to that to the it's something I look at MarketSmith all the time and

it's something that actually in my book about a lot of the the real black belt

investors yeah said that they pay great attention to that up/down volume ratio

this these do the game changers these are the ones that are really on the move

so maybe that's what the up-down volume is so it's looking at the Uptown volume

over the last 50 days and so it's just putting in it just to know easy ratio

right there and so 1.8 means that it's 80% more up volume than down volume right

on that so you want over 1 so 1 or not right and so so very consistent

accumulation so it's just that nice little snapshot as opposed to like the

accumulation distribution ratings over a quarter it's over 13 weeks right so

different kind of timeframes here but yeah I really like that up-down bowing

yeah I do too and above a 1.2 shows positive demand yes yeah yep so this was

one point eight that was well above that right now Roku is extended so you want

to make sure it comes with and that's another base now if we go into a

correction as good correction continues it you know chances are Roku will

probably come back in maybe form another base their bases are formed correction

so you know based building happens because of a correction

so Corrections can be good things exactly so let's go to the second stock

solar edge ticker symbol SEDG and this is another stock that's done very very

well it you know it's one of these stocks that saying correction what

correction yes there's no correction there's not even much of it back off

today i mean this is another stock this is up like 87% from the pivot in 79 days

this one also recently within the last couple weeks had reported earnings it

had an earnings surprise of 13% again i want to emphasize that that earnings

surprise it's more than what Wall Street is expecting yeah and that's when you

see there's Bible gap up so it's usually what creates that I love MarketSmith

because I can just scroll my my mouse over it and I get all this great

information we've had monster volume coming into the stock again you've got

your institutional buying the accumulation distribution reading is an

a your composite rating the IBD it all around is 99 here now in this the energy

solar the relative strength for this market this is an A+ so these energy

solar stocks have been doing well but and and it's pretty interesting with the

what's going on with the solar so the solar age stated there like a number of

these other solar stocks here they're providers of like solar inverse a number

of the equipment not necessarily just installing the the solar panels but some

of the the pieces the components that go into the whole solar process now another

major competitor if there's a Zen phase but want the real catalyst that and the

reason why both enphase and solar edge have done very well is because of the whole trade Wars and the China and the Chinese competition

because there's a number of companies there that are providing these parts to

they've fallen off there's no more competition right because of the terrace

because of Huawei has been it's actually but in the restricted list for

everything no one wants to take action none of these installers these solar

installers they don't want to take a chance of buying a Chinese product so this

worked very well yeah so for both solar edge and end phase so a lot of the u.s.

solar companies have have benefited quite a bit

from the these trade wars that are that are going on now now solar edge isn't a

us-based company they're an Israeli company right but as long as you're not

a Chinese Chinese company right they're not gonna have the same tariffs they

also are really terrific at optimizing solar power you know it's the length of

time that your solar panel works it's not just a matter of harnessing the

solar power it's how long even on a cloudy day will continue so they've

really been they're a leader on optimizing that power huge yep yeah

making the best of the you know that situation that cloudy does that's right

the what we have now here we have we have earnings and sales may be a little

bit off like the canceling edge here however this is kind of a turnaround

story they had a couple of quarters of negative earnings they turned that

around they were up 15% in the most recent quarter sales were up 43% so

that's that's certainly they're selling yeah if you see sales up 43% they're

selling their product they went on a great run in 2017 - right right this

monster monster run they kind of settled down and now you have this larger kind

of catalyst right where and that's what Wall Street sometimes does we'll get

these questions on hey you know they don't this company doesn't have a lot of

earnings they have a lot of great sales but you know it's not really can slim

right Wall Street's not always win for everything to be perfect right right

into the future exactly they're always looking out and then they're they're

realizing hey there's this larger catalyst if these companies are

restricted from this country who are the beneficiaries right and so they're doing

that kind of thought process then they're making the decisions and you see

it on the chart you do and I want to point out here the up/down volume ratios

3.6 that's a that's a huge number yeah I want to just say that Jim row poll that

I've interviewed in my book of course he's been to all of our workshops many

like I think 20 times or 25 times I think he bought Google so now we're back

in 2005 and the Up down volume ratio was 2.9 and that was just a large number

really put him on notice that he needed to pay attention to Google and when it

was really moving so again if we go back historically and we look at this up/down

volume ratio it's something we need to pay attention to is this it's something

we talk about as much we talk about the

accumulation distribution rating yeah but this the up-down volume and you know

3.6 is a big number yeah no that that's that's a very big

number you don't see that too often right let's go to our third stock here

and this is CrowdStrike ticker symbol CRWD and there are

another security stock they are based on you know built on cloud computing so

just like Zscaler and and a few of the others that we've spoke about in the

past this is another exciting security stock that is benefiting from all the

craziness that goes on and they love it plug one problem get another problem

over here exactly this is this is a space that's not going away this is a

newer IPO so we we're paying attention to this one that had its IPO in June of

this year this one has a two point one and in firms of the up-down ratio it's

been kind of in a little bit of a range here Irusha as we look at it sort of up

and down a little bit more the other two stocks that we've talked about we're

really rocket ships yeah they were they really went up a lot this

one has it's been doing quite well yes but it is holding and it even held you

know pretty well today yeah yeah it's it's a it broke out of an IPO base back

in on July 19 so broke out at that currently 18 percent from it so it's

everything's going well obviously now this is yet another tech stock that does

not have earnings but they have monster monsters so master sales triple digit

sales so we have even for the last four quarters here we have a hundred and nine

percent one hundred and forty nine percent one hundred and eight percent

and 103 percent in terms of those are monster sales we just talked about the

triple digit earnings or sales yeah and they've got it yep and they're they're

in a strong industry group now what this kind of threw me off right now because I

just look at the rank it's 17 out of 197 I thought of that right you know so but

you know they're in the same group as Z scale are octa cyber-ark

all these stocks that you should be pretty familiar with if you're looking

at diabetes 50 and the big cap 20 well and the group still

a minus rating in terms of our rating this on here on MarketSmith we have

accumulation distribution of a plus so there's been some heavy buying power

that's come into this stock although it is a little bit young

it hasn't been trading all that long yeah but we won't be like new

merchandise we want new companies that are coming out in the market and if you

don't buy that IPO base which is there's always a little bit more risk on it you

know keep on your watchlist let it form a more traditional base like a couple of

handle right and then they'll give you a chance to try it again

something worth noting here there's only about a hundred and thirty four

professional investors in this but that's because it's a new name it's a

young name yeah whereas you know Apple would have many thousands of funds that

are in it so when you see this you say what gosh that doesn't seem like there's

very many funds in it it's just because it's new its new yeah and it takes a

while for a lot of these funds to get interested and then also you start

building positions yes absolutely absolutely so those are three stocks

that have done well this year and continue to hang in there during this

choppy market thanks Amy for being on the show as always it's great seeing you

oh Irusha was lots of fun I I have to come back and bother you again

absolutely that's it for this week on investing with IBD next week we are

gonna have Vernon Vice on the show he's a portfolio manager at Lord Abbett and

we're gonna talk about how they adapt the IBD concepts all these rules that we

talked about how they actually take them and adapt it to the institutional and

mutual fund world so that's it and I'm Irusha Peiris and thanks for listening

and for this week's notes and charts make sure to go to investors.com/podcast

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