SNOW March 24: Some Lessons Learned

SNOW was one of a very good acting stocks from the low of November 23, at around $145, it increased to $236 on Feb 28, 24. A nearly 60% run.

Its key moving averages (MA50/150/200) had been acting very well.

On Feb 29, 24, SNOW broke down hard violating its MA-50 on huge volume, after earnings.

The big gap down of -18% made it looks like a bargain. However, in the stock market, cheap is not equivalent to a good buy.

Even if we bought it on the low of that day, at the time of this writing (March 24) the stock went down another 12%.

1. Never bottom fishing.
   
2. Focus on the strongest stocks.
   
3. Trade only the stocks which are above its rising MA-50/150/200
   
4. Scale down before earnings is a good idea.