WLT

This last week I learned a lot about investing. I learned a fundamental mistake I have been making. It is a mistake that if I used I would not have bought into MIPS, or CCME. Both of these buys have been my worst mistakes. The fundamental rule I discovered is the buy point should not be more than 12% away from the 50-day moving average when the stock breaks out. Most cases the buy point ranges from 6% to 12% above the 50-day moving average.

Duck Brothers Investing bought GPOR, LULU and sold CCME. Both GPOR and LULU hit a buy point this week. GPOR reached its buy point on Monday at $23.02 and LULU on Friday with its buy point at $74.70. GPOR has raced up 9.25% and LULU is up 3.03%. We sold CCME with an 8% loss. Below is our Duck Brothers portfolio. We own PCLN, LULU, and GPOR.

Walter Energy, Inc is our stock pick of the week. It currently is forming a double bottom or a cup-with-handle base. WLT is a producer and exporter of metallurgical coal for the global steel industry. It also produces steam coal, coal bed methane gas, and metallurgical coke. WLT over next week will probably trend lower falling below the 50-day moving average. It will gain support under the moving average and create a W-pattern. The W-shape pattern is also called double bottom. Normally the second down trend will go lower than the first. The buy point will be above the 50-day moving average with volume 40% or higher above average. Also the buy point should be 12% or less away from the 50-day moving average on the day it gains support.