The up-trend remains intact and the GMI and GMI-R are still at their maximum values.
ARMH may be forming a cup-with-handle base. ARMH is an RWB rocket stock. The traditional IBD approach would be to buy it upon a high volume break out a little above the high of the handle, at about 19.06. However, another way I like to to buy is after the stock bounces off its rising 30 day average (red line). After the purchase, I would place my stop order to sell below Monday’s low, at about $18.19. Buying off of the bounce of a proper moving average is a nice strategy because the stop loss can be placed based on the technicals not far from the purchase price, thus producing a small loss if the trade does not work out. (However, the stock may never follow through with the break-out above the handle.) I have found that the most stress free way to trade is to place a proper stop loss order immediately after taking on a position, thereby defining the likely risk. If the stock acts poorly I am likely to be sold out with a small loss and can later buy it back or move on to another stock. Every small loss brings me to the next gain. Click on chart to enlarge.
