I am writing this post primarily to teach my students how I search for potential rocket stocks–stocks that have been launched and appear headed towards new peaks.  As I said in class this week, it makes the most sense to buy stocks that have the best fundamentals and technicals.  This strategy has been advocated both [...]

I started teaching two classes on technical analysis last week and will explain more of my concepts and include informational links, as many students will be new readers.  My General Market Index (GMI) keeps me trading with the general market’s trend.  The GMI is a count of 6 short and long term indicators.   Because I [...]

“Last week, a person who knows nothing about the market asked me how to short stocks.  This is reminiscent of the stories of the shoeshine boys providing stock tips, near the roaring 20’s market’s top.  The sentiment is just too negative right now.  Does this mean the market has to turn up?  Not necessarily, but the [...]

I used TC2007 to scan the market for stocks that meet my most stringent fundamental and technical criteria for rockets.  These stocks have great fundamentals and technicals, have already doubled their price a year ago and are near 5 year or all-time highs.  I have listed in this table the 11 stocks out of 4,000 [...]

From time to time I attend stock meet-ups and listen to members opine about how useless the IBD 100 lists are.  People just like to denigrate things without examining the evidence and these untruths tend to get passed on unchallenged.  Each Monday, IBD publishes a list  of the top 100 growth stocks that meet their [...]

The market up-trend is in place and I am almost 100% invested on the long side in my trading IRA.  I am also largely invested in mutual funds in  my university pension. This is the time to ride the train and not to fight it.  No one knows when the up-trend will end.  The idea [...]

There were 32 new lows on Friday in my universe of 4,000 stocks, the largest number since March 12th!  There were only 9 new highs.  Friday was the 5th day of the new QQQQ short term down-trend.  Why try to fight the down-trend when one can sit calmly on the sidelines?  The major positive I [...]

Many of you have requested that I post a chart showing the recent performance of the GMI over the past year.  The GMI, though not perfect, has successfully kept me on the right side of the market through the 2000-2002 and 2008 bear market declines.  I simply go to cash in my university pension and [...]

The GMI is back to 5 (of 6) and the GMI-R  to 9 (of 10). There were 30 new highs in my universe of 4,000 stocks on Wednesday.  Stocks on my IBD 100 lists at new highs include:  TSRA, LL, SYNA, STAR, VPRT, URS, HDB, ICUI, MTXX, NTES and NVEC.  I am selling puts on [...]

If calling the short term trend of the market were easy, we would all be rich and retired.  Last week, my short term QQQQ indicator gave me a head fake and turned my daily trend count down.  That new downtrend lasted for two days and then the up-trend resumed.  However, I had indicated at the [...]