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Waiting for $QQQ to show a green dot

@ 8:49 pm
GMI6/6
GMI-27/9
T210857%

The chart of QQQ’s daily 10.4 stochastics has arrows that show where the fast stochastic (red line) has crossed above the slow stochastic (blue line). That is what I call a green dot signal, also shown on the price chart by, you guessed it,  green dots. (A video tutorial for building the green dot signal appears in my TC2000 club.) The green dot is a very short term trend signal on the daily chart of a stock or index in an up-trend and indicates that a bounce is likely. Note that most advances begin after the daily 10.4 fast stochastic has fallen below 50 and then has a green dot. The end of a bounce usually occurs after the stochastic is above 80 (upper horizontal line) and  often when it reaches 90 or greater. I therefore think that the QQQ, with Friday’s stochastic reading of 92.67, is overbought and more likely to stall out soon. (QQQ is also near the top of its upper 15.2 Bollinger Band.) I would prefer to place a bet on a rise in the QQQ (or stock) once the stochastic falls below 50 and flashes another green dot signal….

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

19 Recent IPOs at ATH with recent GLB: $MTCH $TWLO $SEND $SFIX $ROKU $CABO….

@ 7:30 pm
GMI6/6
GMI-27/9
T210860%

So many stocks are breaking out to all-time highs (ATH). Every rocket stock has a long series of repeated ATH. I went to barchart.com and filtered stocks that hit  an ATH on Friday and copied the list to Excel and then to a watchlist in TC2000.  I then used TC2000 to  find the subset that came public since 2015 (created a column with a formula c/c4 set to yearly; those with a result of  ** could not be calculated because they did not trade before 2015). I then manually looked at each monthly chart to find those that had hit an ATH and subsequently consolidated for at least 3 months.  I drew a green horizontal line at the peak price it reached before it consolidated.  I selected those that had a GLB (green line break-out, closed above its green line) recently. I also like to see above average trading volume the week of the GLB.

These recent IPOs are worthy of my researching for future purchase. The great trader, Jesse Livermore, liked to buy the first GLB (he did not use my term!) of a recent IPO. Note that if a GLB stock closes back below its green line, I sell it immediately. I may repurchase it if it closes back above the green line–see the charts of MTCH and SFIX below as examples of GLB failure and rebound. The 19 stocks from this exercise are, in random order: MTCH, PSTG, NTRA, NVCR, NXRT, TTD, TWLO, YEXT, SEND, SFIX, ROKU, RPD, SQ, CISN, CNDT, CABO, CVNA, APPF, ADSW. Below are weekly charts of a few of them. I sometimes tweet GLBs intraday when TC2000 alerts me. Follow my tweets–@wishingwealth.

By the way, while not a recent IPO (in 2011) , MPC had a GLB on Friday, perhaps reflecting strength in oil. Looks like a cup and handle break-out….

 

The GMI remains on a Green signal and the QQQ has reached the 35th day of its short term up-trend.

16 Stocks with a Green Dot Bounce from Oversold

@ 9:49 pm
GMI5/6
GMI-27/9
T210852%

I prefer to buy up-trending stocks that have bounced from oversold levels and have resumed their advance. The green dot signal video tutorial, available at my TC2000 club, shows how I put a green dot on my daily charts. I ran this weekend a TC2000 scan that detected green dot stocks over $70 (I have more success with expensive stocks) that were recently very oversold. One of the 16 stocks that came up was CRM. Check out its daily chart below. Note the recent green dot and the bounce off of the rising 50 day average (green dotted line) and off of the lower Bollinger Band. CRM reports earnings on 8/28. Four prior green dot signals have worked for CRM but the signal can fail at anytime. A decline back below a green dot would be the spot for my stop loss or an exit point.

The other stocks that came up on this scan appear below. It will be interesting to see which of these stocks continue to rise. A lot depends on the general market’s trend. Note that I have not researched these stocks. This list is for educational purposes only and is provided to help others understand and evaluate this set-up. In late August I begin my course with 180+ university freshmen who will learn everything about technical analysis that I have learned since I was their age.

The GMI remains Green and at 5 (of 6).