My first honors stock market class of the new semester got snowed out today! I will be writing a lot of these posts to familiarize my students with my methods. Click on the highlighted links below to begin to understand the new concepts I use.
All my indicators remain positive, but I am still mainly out of the market now. I am still wary of the municipal bond crisis. I closed out my puts on AGO on Thursday with a nice profit. The market makers would not buy them back at a fair price, so I purchased the shares. I can now put the shares to them at the strike price anytime before option expiration.
NFLX held its new high nicely on Thursday. There were 413 new highs and only 27 new lows in my universe of 4,000 stocks. TRW hit another all-time high on Thursday and is an RWB rocket stock. Check out the weekly GMMA chart below. TRW reports earnings on February 17.
Below is the monthly chart of TRW. This is the pattern of a rocket climbing to the moon. We buy stocks heading toward the moon, not falling back to the earth. To buy a stock, it must exhibit a confirmed up-trend in the monthly, weekly and daily charts.