Well, the expected window dressing came, but on the last day of the month! Now we get to see if the market can continue to climb or if it will go into a pre-earnings release lull. I suspect it will be the latter. There were 339 new highs on Friday in my list of 5,861 stocks. This was the highest number of new highs since March 26. The Worden T2108 is at 71%, still in neutral territory. I do not begin to worry about too much exuberance in the market until the T2108 reaches 80%. This market remains in a Weinstein Stage 2 up-trend. IBD now sees the market in a confirmed up-trend and the GMI Buy signal remains in effect. I will therefore gradually add to my long positions.
22 stocks showed up in my Darvas Scan. They are, in alphabetical order: ABAX,ABCO,ALXN,ASPS,CSTR,CYBX,DG,GEOI, IOC,ITIC,LL,QCOR,SHW,
SIX,SLXP,SUSS,SXCI,TCBI,TDG,ULTA,ULTI,ZUMZ.
14 of these 22 stocks are in my IBD50, CAN SLIM, or New America watchlists. All of these stocks passed my technical criteria and have good fundamentals. They are worth researching for possible buys………
This weekend the DC area was hit with a sudden fierce storm that brought down electrical power for over 500,000 people. The storm slowed everything down with many traffic lights not working. I was unable to spend as much time as usual on this blog. However, with a shortened holiday week upon us I hope to write more later this week.
Dr Wish, you sold your holdings a few weeks ago when the “market” was declining. But now you buy again. Don’t you end up paying MORE per share now than what you sold them for? — not to count the fees/commission to get out and buy again now. BTW, I did not sell my shares and now that IBD said “uptrend confirmed” my shares are higher in price than when I bought them. My point: true, you expected further decline, but in a MKT like this essentially you sell and then buy at a higher price and pay all those commissions!!
Commissions are so low these days I ignore them. Getting out is the insurance I pay to avoid a significant loss. When your car is not stolen or in an accident do your regret paying for auto insurance? I am always happy to repurchase a stock I have liked at a higher price. It means my assessment was correct.
The act of selling isn’t even comparable to insurance. Selling is an act of changing your opinion on the direction. You don’t sell because you think your stock is going to go up in price. Commissions/fees arguably have always been low, if you are performing any kind of trade with expenses greater than 1%, you should stop immediately. That said, using this scheme would have to work at least some of the time due just based on probabilities alone.
Dr. Wish, …uuhhhhh !! In that scenario, you sell and then one week later buy them again!