I think this market is strengthening into 3rd quarter earnings. Many down markets have bottomed in October. Remember to “come back at Halloween.” So there were 35 stocks at an ATH on Friday and one of them, ARW, was a high volume GLB. A GLB must not CLOSE below its green line. If it does I sell it immediately. For ARW, the green line is at 237.33. Rather than using a physical stop on a GLB I have purchased, I look at it each day around 3:45 PM to see whether it will likely close below the green line. Many successful GLBs trade intraday below the green line but rally to close above it and I would have wanted to retain it. In such a case a stop loss below the green line might have sold me out even though it closed back above the line. I only want to sell it immediately if a GLB closes back below the green line. If it closes below the green line and then closes back above it I may buy it back. I will discuss GLBs on my MoneyShow talk on October 20.
