Our next momentum stock play is Titanium Metals Corp (NYSE:TIE) which is currently trading at $31.75. One of our readers named John recently made a valuable contribution to the Jutia community by sending us a pick that met the criteria we use in filtering out the best investment ideas.

He noticed that the stock’s MACD and DMI indicators recently signaled us to buy. In addition to this, the stock has recently broken its downtrending wedge to the upside. You may be thinking, “Well, the stock has made a big jump. Isn’t it too late to get in?” Although it is true the stock has started to move, you should not feel in any way that it is too late to get in. The goal here is not to predict the bottom or top, but to make your profits on the “sweet spot” of the trade. This not only limits your risk in predicting market bottoms and tops, but also serves to justify your reason to jump in when the trend is your friend. You want to ride a bullish wave, not fight it. In bringing up a one year-weekly chart you will see that John’s analysis was right on:

Source: Bigcharts

Our Recommendation: Buy shares of TIE and place a 5-10% stop loss depending on your risk tolerance.

Note: If you have any ideas, questions, or concerns that you think the Jutia community would benefit from, please let us know. You can submit a comment at the end of each post, email me at the “About Us” section, or head over to our forums section which should be up and running shortly.

Good Investing…