I announced that I am now working with my prior exceptional student, Richard Moglen, to include my primary charts prebuilt on the TraderLion program, Deepvue. A link to Deepvue appears at the top of this blog. I explained the GLB setup and showed that the likelihood of a GLB being successful was related to the market, measured by my GMI. The result was unexpected. A GMI below 5 was more likely to be successful! In other words, when the market is weak, a stock breaking out of a consolidation to an ATH is showing considerable relative strength. See the chart below. About 60% of the GLBs that occurred when the GMI was 0-4 were successful, compared to about 40% when the GMI=5 or 6. One must always sell a GLB if the stock closes back below the green line. Deepvue will automatically draw in the green line. I will repeat this preliminary analysis after I gain more GLBs.
Here are answers to the questions raised by attendees:
- WHAT STAGE 2ND 3RD 4TH STAGE BASE DO MOST GLB OCCUR?
A GLB will likely occur in Stage 2 and when the modified Guppy chart (F5) is in a RWB up-trend. I prefer a GLB over $30 where the stock is at least 2x its yearly low.
2.What fundamental analysis do you do to determine what ATH’s to choose?
I actually think that an above average volume GLB may be sufficient reason to buy a stock. Someone must know that something is good or is going to happen. However, I always ask AI to evaluate the stock and list the pros and cons. If the stock has growing revenue or earnings I might be more interested in it.
- Can we get a copy of your slides? I missed one.
When I release the session recording when I receive it next week, you can view or screen shot my slides.
4. What is your sell rule(s) after a stock has made a good run of profits?
That is a great question that is difficult to answer for everyone. Some people sell 1/2 of their position after a good profit and raise their sell stop to break even on the rest. I tend to look at the weekly chart and see if the stock breaks below a moving average that generally supports it. A close below the 4 wk avg may be the first sign of weakness and a close below the 10 week would get me out.
- Dr. Wish what is your TC2000 formula for ATH?
You have to use the built in condition, price new high. This is how I do it along with some other filters.
- Do you have an AI script to share with us?
I do not understand the question. I merely ask ChatGPT to evaluate a stock.
Thank you to all who attended. Watch here for the link to the recording.