With my General Market Indicators back to their maximum values, I am looking for rebounding stocks to buy. One that came up in my scan last night was LULU. As the weekly GMMA chart shows, LULU is a RWB rocket stock near all-time highs. LULU reports earning on March 21. The 2 NA’s on the chart indicates when IBD wrote about LULU in their New America column about visionary companies. (Click on chart to enlarge.) I am still short one India company and am closely watching the municipal bond related stocks and ETF’s for any signs of resumed weakness.
Good point, Lulu bounced its 10 day MA.ARMH did the same thing yesterday, looking to add a swing trade on this one.
Dr. Wish. I have been following you for quite sometime and really appreciate all the knowledge you have shared on this site. It has helped my trading immensely. I have mostly been trading QLD and QID instead of individual stocks. During this last correction I ran scared and sold out my QLD position. I did this even though my sell signal was never really violated. The condition of the Municipal Bond Market is what really scared me into selling. My dilemma is now that it appears that I may have made a mistake in selling early. How do I transition back into my QLD position without taking on a lot of risk. The current market is so extended and a long way from their moving averages. I normally enter a position using a MA for a buy signal. I am afraid it may be sometime before this market allows you back in using that method and therefore I may miss what is left of this move. Since it appears that we both exited the market early what is your current strategy for getting back in some of the ETF’s like QLD that you normally trade.
Great comment! I exited in my trading accounts not my university pension. I had huge gains and wanted to protect them and take some time off as the new semester begins. What I do if the market rises again is to slowly wade back into QLD or another index ETF and buy an individual stock that has just given me a buy signal. There are many stocks that have bounced off of support the last few days. I take small positions and only add to them if they continue to gain. I still am cautious because of the municipal bond and local budget crisis.