Why I Bought These 2 Darvas Stocks

by Darrin Donnelly on December 16, 2010

While it’s important to be cautious in this market environment, we still have the “green light” to buy into new positions due to the Stage 2 uptrend we’re currently in.

On Wednesday, despite the fact that two Darvas stocks I had previously owned hit their sell stops, two new Darvas stocks triggered buys for us.

What are these mixed signals telling us?

 It could be that we’re seeing some sector rotation right now and new leaders are stepping in to take over as the “old” leaders are stepping down.

The bottom line is that when the market is in an uptrend, even if there is some uncertainty, you have to trust the action of your individual stocks.  If the action says sell, you sell.  If it says buy, you buy.

These two stocks gave us clear price-and-volume action that said it was time to BUY.


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