Blog post: Wish-Darvas scan finds 14 stocks to monitor Monday: $CASH $CAMT $MYRG $GM $HIBB $WSM + 8 others listed

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This weekend I created a new scan column in TC2000 that puts together most of the characteristics of winning stocks that I have embraced over the years. Some were suggesetd by the great Nicolas Darvas. Most, I created based on my trading experience and reading the past 50+ years. This scan finds  stocks that meet the following criteria:

>$20, near all-time high, yellow band for 5+ weeks (see my 2012 TC2000 webinar link on my blog for the definition of yellow band stocks), reached a  new high within last 25 days, closed up today, closed up >80% from a year ago (Darvas liked +100%), bounced up off of exp 21 day or simple 30 day average today.

The 14 out of 6,081 US stocks that met these criteria as of Friday’s close appear below along with their projected next earnings dates. I copied these symbols into a watchlist to monitor on Monday with a column to show me whether Monday’s high is above Friday’s high, another sign of strength. Note that 6 of the 14 have a blue flag, indicating they came to my attention after appearing on an IBD or MarketSmith list in the recent past. I am not recommending these stocks and do not own any of them. They are listed for educational and research purposes only. Maybe some of these will turn out to be true market leaders. Remember, if I buy a stock after a bounce up off of one of these moving averages, I must sell immediately if it closes back below the average. The nice thing about this strategy is that it incorporates longer term and short term technical criteria. Before buying I check IBD or MarketSmith for strong fundamentals and projected earnings. I can run this scan every day near the close to look for possible winners.

 

Here are the daily, weekly and monthly charts of one of these stocks, CAMT,  as an example. Note the black and green dots showing oversold bounces on the daily chart.

The GMI is at 6 (of 6) and remains Green.

 

Blog post: 6th day of $QQQ short term up-trend and the GMI is Green; earnings on deck; $AAPL, $DELL, $CMBM moved up after black dot signals

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My black dot signal occurs when a stock has been short term oversold and then closes above its 30 day or exp21 day averages. Buying an oversold bounce is minimal risk for me. If the bounce fails I can quickly exit with a small loss. I prefer this strategy to buying break-outs. It works best for me with up-trending stocks near all-time highs.

Look at the new DELL.

And CMBM

 

Blog post: End of quarter window dressing rebound; IBD says “resumed uptrend” but GMI remains Red and $AAPL is in a daily BWR down-trend

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I should have mentioned earlier that the market might rebound with the end of quarter mutual fund window dressing period. Since mutual fund quarterly reports only specify account holdings and not when they were acquired, funds buy up the strong stocks so that they can show their customers how wise they have been. With that period ending we could see some weakness until earnings reports start coming out. Meanwhile, IBD now asserts that there has been a follow-through day (FTD) and that the up-trend has resumed. Time will tell, but only 3 of the GMI’s six components are positive. (See table below.) And look how bad a leader like $AAPL is doing, now in a daily BWR down-trend. (All six red short term averages below the falling blue longer term averages with a white space between them.)

And QQQ is still making up its mind. Which way will it go? Trend followers stay pat until the trend is defined.

But SPY remains strong, hence the bifurcated market.