One of the most important innovations I developed was the GLB or green line break-out. I like to buy stocks that have advanced to an all-time-high (ATH), consolidated for at least 3 months, and then break out to close at a new ATH. I use TC2000 to draw in the green line on a monthly chart at an ATH and alert me the moment the stock trades above the line. A green line can only be drawn after 3 months (3 monthly bars) have passed since a peak price bar that has not been surpassed (see monthly chart below). I make an exception for recent IPOs when the green line may be drawn after consolidating a few weeks after reaching a peak ATH.
Last December, I posted a weekly chart showing that PGNY had had a GLB at 36.50 and a weekly green bar (WGB). PGNY closed Friday at $64.04, 75% above its GLB.
Here is its monthly chart showing where the green line was drawn.
If I buy a stock after a GLB I sell it immediately if it closes back below its green line. A failed set-up on which I base my purchase must always be sold. It is preferable for the GLB to occur on above average weekly trading volume. This weekend I identified a few stocks that have met the above criteria last week or a few weeks before. Here are their charts.
It is impossible to tell if any of these stocks’ GLB will fail or if it will rocket higher. I did look up their fundamentals on MarketSmith. Their IBD Composite scores are MEC (78) OMP (94) TGLS (99) FLNG (98) CUBI (99). All have floats of <30 million shares.
The GMI is 6 (of 6), flashed a Green signal, and the new QQQ short term up-trend has now reached 3 days (U-3). I have begun to purchase TQQQ, the 3X leveraged bullish ETF for QQQ. If this up-trend persists I believe this is where I will likely make the most $$$$. Note that QQQ has now closed back above its 10 week average while SPY has closed above its 10 week average for 17 straight weeks.
So on PGNY, would you have purchased it in November b/c it broke the green line but fell back below it? Then repurchased after the next breakout? Am I understanding that correctly?
I appreciate service that Dr. Wish provides and the opportunity to learn. I have learned about MAs, Guppy’s MA plots and Weinstein Stages… Now GLB.. I dabbled now in purchasing CUBI, TGLS today! Stop losses around 6% and 9% respectively to match GLBs. Thank you Dr. Wish!