Only 5 of 7,000 stocks reached an ATH on Monday. One fo them, TRI, did so after a recent GLB. (I couldn’t resist buying a little.)
Another was $ANET
Blog Post: Day 1 of new $QQQ short term up-trend; 23 new US highs, 433 lows and 6 at ATH; Split market with tech stocks outperforming, but GMI remains Red; Weekly 10:30 chart for $QQQ shows potential longer term turn around, see charts of QQQ and 2 AI related stocks, $MSFT,$NVDA
This weekly 10:30 chart of QQQ shows the 10 week average (dotted line) above the 30 week average (red solid line) and the index weekly close (gray line) is above both averages. Note the higher volume last week. This is the pattern of bottoms. The final evidence for me of a new longer term up-trend will be if the 30 week average should turn up. My accounts are mainly in cash with a very small position in TQQQ (because of Day 1 of the QQQ new short term up-trend) and some QQQ itself. A weekly close below the 30 week average would invalidate the up-trend. Remember, QQQ contains non-financial companies and the absence of banks may be one reason for its better performance. Another reason may be the AI revolution, which could lead to a rise like the one that occurred in the 90s as the internet craze was born. My monthly Kiplinger Retirement Report just came and included a piece discussing 8 AI related stocks, most of whom I would not consider buying because of their long term charts. The only one’s I like are MSFT and NVDA, but they are not near their ATHs yet, see weekly charts…
Blog Post: Day 7 of $QQQ short term down-trend, likely to end Friday; 42 new US highs, 367 lows and 8 at ATHs; Two stocks I wrote about on Tuesday evening as having a GLB rocketed higher on Thursday to ATHs, $ANET, $CDNS, see daily charts
My Green Line Breakout (GLB) indicator is for me a great way to identify leading stocks. On a monthly chart I draw a horizontal green line on the top of the price bar that reached an all-time-high (ATH) that had not been surpassed for at least 3 months (3 bars). Think of it as a rocket that has climbed to a peak and then rested for at least 3 months. When the stock finally closes above the green line, a GLB, it can be the start of a major advance because the stock has overcome all of the selling by persons who had bought near the higher prior peak. I showed in my Trader Lion 2022 presentation that most of William O’Neil’s huge winners had begun with a GLB. After a bear market, the number of stocks near an ATH are few. The last 5 days have had fewer than 10 out of more than 6,000 US stocks trading each day at ATHs. (I don’t count stocks under $20 or with negligible volume). Once the GLB occurs, hopefully on above average volume, if I bought, I sell if the stock CLOSEs below the green line. That is a failed GLB. If the stock retakes the green line the rise may resume and I may buy it back. See these daily charts for examples. CDNS had several GLBs which failed and then found support along the green line. ANET also had a failed GLB before taking off.
This monthly chart shows where I draw the green lines. Once I draw a green line I place an alert in TC2000 to tell me when the stock trades through it.
