My Favorite Posts

Blog Post: Day 23 of $QQQ short term up-trend; 194 US new highs and 79 lows; $GNE came up on my favorite setup, see daily and monthly charts and setup videos

@ 8:37 pm
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I have noticed that in a strong market, it is sometimes profitable to buy a stock that has reached an all-time high after a recent GLB, declined to oversold, and then turned up. I scan  for such stocks with TC2000 and found GNE today. I bought a little GNE and placed my stop below the low of the bounce. If I am wrong, I get stopped out with a small loss. If I am correct, maybe GNE will go on to new highs? It has already tripled this year’s low. Maybe it will triple again?I had noticed GNE when it came up on my GLB (green line break-out) scan on October 11 (see GLB tracker to right). It since has held its green line (at 17.80) and advanced to as much as +43%. Now that it has bounced from oversold I couldn’t resist a small purchase. GNE has an IBD/MS Composite rating= 96 and RS=98. Note the black dots designating oversold. My late co-instructor, David McCandlish, built this tutorial showing people how to add the back and green dot signals to their charts using TC2000. His youtube page shows more tutorials he built for my class.

Here is its monthly chart.

Very Important Blog Post explaining GLBs: Day 15 of $QQQ short term up-trend; 123 US new highs and 2 lows, 43 at ATHs; $PGR is an example of a successful GLB, see its monthly and daily charts and a list of 16 other stocks with a recent GLB.

@ 7:05 pm
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The leading successful stocks bought by such greats as Nicolas Darvas, William O’Neil and others are those that go on to a series of all-time highs. These traders tended to buy when a stock hit an ATH, consolidated, and then broke out to a new ATH. That is the idea behind my green line breakout (GLB) setup. I draw a green line on a monthly chart at the price bar during which an ATH was reached that was not exceeded for at least 3 months (bars).

Look at this monthly chart of PHR. In April, PHR reached an ATH= 149.87  that was not surpassed for at least 3 months. That is where I drew the green line and set an alert in TC2000 to tell me when/if it ever trades above that green line. The daily chart below shows that PGR had a GLB on October 13 on unusually heavy volume, a good confirmatory sign. PHR never closed back below its green line (which would be a failed GLB)  and closed Friday at 163.72, up +9.2% from the green line. PGR has an IBD/MS Composite rating=96. I always check out IBD/MS fundamental ratings before buying. I want to buy advancing stocks that have great fundamentals.

Buying GLBs can be very profitable during market up-trends, but most people think it is better to buy stocks at lows–WRONG!!! I buy high and sell higher. We want to hitch a ride on the way to the moon. Other stocks I have noticed that recently have had a GLB are: CMG, MSFT, DUOL, MPTI, QLYS, HLT, CAH, CRH, WING, RACE, V, COR, AIR, ITT, L, CNM. Check them out. Why bottom fish or buy  stocks way down from their  ATHs when there are so many rockets taking off to ATHs and to the moon. It takes a rocket scientist! Once I buy a GLB, I sell immediately if it closes back below the green line. If I miss the day of the GLB, I will buy it afterwards if it exhibits another of my entry setups. I only buy stocks trading above their last green line tops!

 

The GMI= 6 (of 6) and Green. Time for me to be invested long.

 

Blog Post; Day 48 of $QQQ short term up-trend; My favorite set-up, oversold bounce (black dot) after a recent yearly high, see charts of $OPRA, $BELFB and list of other stocks

@ 8:29 pm
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I have been refining my black dot oversold indicator by requiring a prior recent yearly high. I am looking for a stock that has been strong enough to reach a high  and then becomes oversold and starts to move up. The beauty of such a set-up is that I can place my stop loss below the low of the bounce day. If the bounce fails I am sold out with a small loss.  OPRA kept showing up on my all-time high scans and then had the OSB, designated by the black dots. OPRA has an IBD composite rating=99, RS=97 and ACC/DIS=A+. Earnings are expected to rise +96% this year. It is involved with AI and has already advanced 6x its year’s low price. I missed this bounce and do not own it. It is above its last green line top.

BELFB triggered this set-up on Friday and I bought a little. Let’s see of it holds on Monday. Note it is also above its last green lie top.

Other growth stocks meeting this set-up on Friday appear below. They are sorted by the last column, which is close/minimum price last 250 days. BELFB is 3.3x its low.

 

The GIM remains Green.