Stock Market Technical Indicators & Analysis
While not all GLBs (green line break-out) work out, they are worth monitoring for a low risk entry. If I bought ADBE now (weekly chart below), I would exit immediately if it closed back below its green line. My loss would be about 5 points. Always set a real or mental stop loss and calculate your risk before entering a position. Be sure to check out the table of the performance of selected recent GLBs by scrolling down on this page.
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).
