Welcome to Stockbook

Stockbook is a weekly financial newsletter with information included about the stocks that I am buying in my Personal Portfolio.
- Pat O'Neil

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If you've ever bought a stock that was highly rated and watched it crash, you know what Wall Street means by Selling into strength. The term strength refers to the demand for a stock by the general public. Once Wall Street sells their hot stocks to the public, the demand disappears and the stock's run is over.

My strategy: To buy certain stocks shortly after Wall Street does, so I can ride up with them and also Sell into strength. I will alert subscribers when I sell a stock. My goal is to make money on 65% of my personal portfolio stocks

Stocks move in groups. We separate 8000 public stocks into sub-groups such as, oil stocks, medical stocks, drug stocks, food stocks, computer software stocks etc. We look for the quiet, unpopular groups that are slowly starting to improve and then look for the best stocks within the group.

For example: In 2009, mining stocks were dead to the world. However, in 2010 mining stocks gained 68.6%. Inside that group, Southern Copper (SCCO-NYSE $48) had very strong fundamentals. SCCO came up with the mining group, gaining 20 points from $28 in May 2010 (when reviewing stocks in a group, we are after the highest quality).
Stocks move in groups. When Intel moves, all semi-conductor stocks are moving.

Research Goal: To spot the stocks Wall Street and mutual funds are starting to buy before the general public gets involved.

Good stock prospects stand out because their trading volume starts to increase after many months of inactivity. Volume picks up when Wall Street and mutual fund money starts to take big positions. Volume changes can't be hidden as they are publicly reported daily. Volume changes ALWAYS go with a major move. We are after stocks with the best fundamentals (financials, management and market prospects).

Because targeted stocks are in the process of recovery, they are not riding any current bubble of high prices and do not have far to fall if their group fails. Groups do fail as their climb to the top may get interrupted by unforeseen events. Although there is no free lunch, we can get the odds in our favor before making a buy.