GMI: +6; HANS-rocket prototype; IBD Meetup tomorrow night

It was another positive day, with 213 successful 10 day new highs, the most in weeks. (See archive post on 4/26 for indicator definitions.)   Buying stocks at new highs has been profitable.   In fact, the median increase in the 213 stocks that hit a new high 10 days ago and rose is 3%, with 24% of them increasing 4% or more and the top 11 rising 9-23%.   The largest gainer was SWN, up 23% in the past 10 days, followed by CNQ, up 18%, both energy stocks.Gmi621 The GMI remains at +6.   There were 168 new highs today (in my universe of almost 4,000 stocks) and only 15 new lows.   The Nasdaq 100 did better today than yesterday with 44% of its stocks rising, compared to 40% of the S&P 500 and 33% of the Dow 30 stocks. This is day 32 of the up trend (U-32).   The percentage of stocks closing above their 10 week average declined 2 points, to 78%…………………………………

Check out HANS, one of the most consistent risers of this market. Hans2 (Click on weekly chart to enlarge.)    It broke to a new high today.   Note that HANS has not closed below its rising 10 week average (dotted line) since October 2004.   This is the prototype of a rocket and you might want to compare all of your potential purchases to this chart.   A shrewd investor could have bought HANS anytime since October, 2004, placed a stop below its 10 week average, moved it up as it rose, and never lost any sleep over the stock.   He didn’t have to wait for a base to form or for a bounce.   In my opinion, this is the sanest way to trade.   Too simple?   Check it out on the runs of past winners (for example TASR, 6/03-4/04)…………………………………………..

Tomorrow night is the IBD Meetup group meeting. It will be interesting to see if the members have rebounded.   Last month’s meeting, you will remember, consisted of only 3 persons and the low turnout was a wonderful contrary indicator.   When traders won’t even meet to talk about the market, a rally is imminent.

1 thought on “GMI: +6; HANS-rocket prototype; IBD Meetup tomorrow night”

  1. Wow, the HANS move is certainly impressive. So let’s say it’s October 2004…how do I spot HANS as a stock I may be interested in? Simply by checking the list of new 52 week highs? It would certainly appear there, but is there any other screening that could shorten the list of candidates?

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