I wrote on February 10th that during January’s decline, the IBD100 stocks got “trounced.” Well, I just looked at the performance of IBD100 stocks during the current rally. The table below shows that the stocks on the IBD 100 list published on February 22nd
General Market Index (GMI) table
With iPad debut on the horizon, AAPL shines; Tech Up-Trend Continues, but QLD beats most IBD100 stocks again
Well, we will finally see if the iPad success is already built into the stock’s price. While a lot of pundits think that the stock is over priced, a look at the monthly chart suggests to me that the stock has just broken out of a 2 year base. This stock may have a long way to go now that it is at an all-time high. I concentrate my buys on stocks that are at their all-time highs because there is no overhead supply of stock from sellers who bought at higher levels who are trying to get out. Think about it, AAPL has come back from the major declines of 2000-2002 and 2008. That is a display of amazing strength. It was the great Nicolas Darvas who taught me to buy stocks at all-time highs. The monthly chart below
Will health care law passage torpedo the market? Stops are in.
It will be interesting to see whether fears of higher taxes from the passage of the health care bill will cause a downward reaction in the market this week. Jim Cramer thinks so. But I am a trend follower and will wait for the market to signal its intentions. I had moved my stops up last week and was sold out of a few things. I refuse to give all of my profits back from the recent rally. There are a few warning signs from my indicators. While the GMI