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I was on the road and took a chance to post about JNJ early in the day. Sometimes blue dots occur in he morning but the stock fails the setup by closing. JNJ was a successful break out, see daily chart below. Note the high volume on this bounce from oversold. My Blue Dot of Happiness setup is explained during my TraderLion presentation on Day 6.  I look for a stock that recently traded at an ATH and then bounced from oversold. I like this setup because I know if the bounce fails I can exit immediately with a small loss. This bounce looked especially promising because JNJ was also just above its lower 15.2 daily BB, another area of support. JNJ is up 50% from its lowest price in  the past year and above its last green line top. Follow me on X, @WishingWealth, to get intraday tweets on promising stocks.

Note above average trading volume too. IBD comp=99!

I scanned over 6,000 stocks and these 10 stocks came up. 6 of the 10 were biotechs! These are stocks that reached a recent ATH and just bounced from oversold, a favorite setup of mine.  Why were 60% biotechs? If I purchased after a a bounce, I set my stop below the low of the bounce. Separately, of all 59 stocks that reached an ATH today, the largest group, 6, were biotechs (ARGX, MAZE, APGE, RVMD, BBIO, TRVI). BBIO also had a GLB.  A group of stocks in the same industry reaching ATHs is a powerful sign of strength. I prefer to reduce risk by buying a biotech ETF (LABY, XBI, BIB, BBP).

Screenshot