Stock Market Technical Indicators & Analysis
Nicolas Darvas liked to buy stocks that have already doubled. These eight stocks hit an all time high on Friday and are 2.1x or more their lowest price the past year. LULU reports earnings on 12/11. All are above their last green line tops. I will keep them in a watch list and wait for them to bounce from support to take a position. Below is a table I built in TC2000 showing next earnings date, close, and close/close a year ago.
GMI is at 6 (of 6) and on a Green signal.
LK is a recent IPO that had a GLB 2 weeks ago (green line break-out to an all-time high). This stock is extended, but may be a large buy for me if/when it falls back to support. (I already have a small position.) Right now LK is extended, floating way above its 4 week average (pink dotted line). Note the huge volume on the break-out in this weekly chart. While LK has no earnings, its sales have been rising triple digit. According to MarketSmith, next earnings come out on January 28 and it has an accumulation rating of A+ and an RS rating of 96. Not too shabby. LK will soon have more coffee shops in China than Starbucks. And maybe the trade war will induce Chinese consumers to abandon Starbucks? (Thanks to Judy for alerting me to this stock.) Remember to check out my list of selected GLB stocks on this page.
The GMI remains Green, at 6 (of 6).
During the internet bull market of the 90s I sold Yahoo around $400 per share (pre -split) because my internal voice said making money was too easy. I had seen the stock go up $50 in one week when I was holding a large position. I tell my students that whenever my voice cautions me that way, I sell. (It rarely happens!) It happened a few days ago, however, when I had a small position in INMD. I watched it rising fast and then on Monday morning, 11/18, INMD was trading up almost $9 from Friday’s close. It was also trading outside of its upper daily 15.2 Bollinger Band on very heavy volume and had gone vertical. My voice went off and I sold around $57. I had a 40%+ gain in just 9 days. I was lucky. INMD closed Friday at $41.55. When I make money too fast, I sell. As they say,: Bulls make money, Bears make money and Pigs get slaughtered. (Wy did I buy this stock? The consummate trader, Mark Minervini, @Marmminervini, had tweeted about INMD.The stock was a strong recent IPO and at all-time highs. I merely bought some on November 6, with the intention to sell it if it traded lower than the prior day’s low. I get great trade-able ideas by following the tweets of a couple of very smart traders: @markminervini and @TMLTrader, whom I met at Mark’s annual invaluable trader workshop.
The GMI is at 4 (of 6) and many of the very short term indicators in the GMI2 are negative. This is a reduced trading week and probably not the time for me to add or increase positions.
