General Market Index (GMI) table

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.

AAPL hit an all-time high of $233.47 on October 3, 2018. After that high was not exceeded for 3 months, I drew in a green line, designating a green line top. I could then set an alert on TC2000 to alert me when AAPL traded above the green line. It had a green line break-out (GLB) one year later on October 11, 2019. Note the above average trading volume that day confirming the break-out.  AAPL has now advanced +12.5% since the GLB. Note that after the GLB, AAPL re-tested the green line for a few days, a common occurrence. If it had CLOSED back below the green line, I would have sold my position.  I would then have repurchased it if it retook the green line. I have found that the GLB strategy works really well for me in a strong market. The idea is to buy a stock that has advanced to an all-time high, then rested for 3 months or more and subsequently closes above the green line on above average trading volume. The fabulously successful trader,  Nicolas Darvas, concentrated on buying stocks breaking to all-time highs during a rising market. Every person should read his book, How I made…listed below. (It is the first book I require my students to read.)

Note that during the time of the GLB and for weeks before, AAPL had been in a nice daily RWB up-trend.

GMI remains at 6 (of 6).