Another stock that came up on my Darvas scan is PXD. PXD recently broke to an all-time high. Check out this weekly chart.
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T2108 doe not go much higher. While the long and shorter term trends remain up, I am looking for a post earnings release lull.
The GMI flashed a buy signal on December 23rd, which is still in place. Since December 23rd, the QQQ has advanced +10.7%, the QLD +22.2% and the TQQQ +34.7%. Meanwhile during the same period, only 12% of the Nasdaq 100 stocks and 11% of the S&P500 stocks have advanced 20% or more. The 3X bullish semiconductor ETF, SOXL, rose +52.8% during this period. The 3X leveraged ETF’s outperform almost all stocks and are much easier to select than individual stocks. I learn this lesson during each multi-week up-trend. Why try to identify the rare stocks that will outperform a 3X ETF?! Just pyramid up on the ETF.
I have many positions where I sold cash secured put options that should expire worthless in two weeks. I will then look to open new covered call positions or sell new cash secured puts.
My DARVAS scan picked up 22 stocks. These are stocks that meet criteria similar to those used by the great Nicolas Darvas , when he made 2 million dollars trading in a two year period in the 1950’s. (See his classic book listed on the lower right of this site.) One of these stocks is KWR, which is just at its all-time high. If it breaks through, I think this could be a winner. Here is a weekly chart of KWR and here is its Yahoo profile. Click on chart to enlarge.
The Worden T2108 , at 86%, is near the highest level it typically reaches on rallies. There were 437 new 52 week highs on Wednesday, the most since last July. Of the 34 stocks hitting new highs and having good fundamentals, eight had recent quarterly earnings gains of 100% or more: MON,TCO,MDCO,BCH,URI,ALXN,AAPL,WCG. Of these, TCO, BCH, ALXN, and AAPL are at all-time highs. As this weekly chart shows, TCO broke from a cup-with-handle base a few weeks ago. Click on chart to enlarge.
Since the GMI flashed a by signal on December 23rd, the QQQ has advanced +7.8%, the QLD +16% and the TYH +24.7%. In the same period, 30% of the Nasdaq 100 stocks have advanced 10% or more and only 5% have advanced more than 23%. Yet again, we find that riding a triple leveraged ETF in an up-trend beats almost all other stocks. Why do we search for the rare stock that will outperform the 3X leveraged ETF , like TYH! Another leveraged ETF that did as well as TYH during this period is TQQQ. In fact the leveraged ETF, SOXL, advanced +34.4%!No tags for this post.