There are a number of stocks that came up in my “Darvas Scan” that are trading near five year highs and have good technicals and fundamentals. These stocks include: NEU, PCLN, AMZN, NFLX, EGO, LZ, CML, ABV, CBD, WCRX, EW, WES, CPLA. Some of these stocks may turn out to be rockets if the market up-trend continues. Meanwhile, the GMI
My short and long term indicators are still in up-trends. I am enjoying the current weakness and will wait to buy TYH when it bounces off of support. Support for me for TYH is around 126. If TYH bounces around there I will buy it and place a sell stop below the low of the bounce. Last time TYH bounced, it went from 114 to 138 in about 14 days. TYH is an ultra long 3X tech ETF. My university pension remains 100% long in mutual funds. The GMI
To be successful in the market, I have to block out all other opinions and look at what the market is telling me. The market successfully tested support last week and the 30 week averages for the SPY, QQQQ and DIA are turning up. This is a classic Weinstein Stage 2 pattern. I get out of the market when the 30 week averages turn down and back in when they turn up. I know this seems simplistic and naive, BUT IT WORKS!! It keeps me on the right side of the market’s primary trend. And 70-80% of stocks follow the general market’s trend–end of story. The GMI is in an up-trend mode, going between 4 and 5.
The QQQQ up-trend completed its 32nd day on Friday. When will the up-trend end? No one knows. My strategy is to hold growth stocks as long as the up-trend is in place. Prior up-trends the past 3 years have lasted as long as 86 days. So the current up-trend may have a time to go, especially with the fear and skepticism accompanying this one. On Friday there were only 11 stocks at new highs and 11 at new lows. After the recent market decline there just are not many stocks near their 52 week highs. On two days last week there were 26 new highs in my universe of 4,000 stocks. The last time there were more than 100 new highs in a day was September 18.
A stock at a 52 week high is rare, but even more rare is one at an all-time high. I have been highlighting such rocket stocks the past few weeks. One stock I wrote about in mid-April is GMCR. Last week the stock soared 35%, bringing my account well into the black for the year. There are a lot of other stocks at or near all time highs, including QSII, TNDM, ALGT, ARST, NFLX, AAN, AZO, HGG, ORLY, NTES, SNDA, LFT. All but 2 (HGG and ORLY) are on my IBD100 list from April 27. I own some of these rocket stocks and think that some of the next great market leaders will be from this list. Any stock that can come through the past market decline and now be near its all time high is a winner.
I just completed the best 2 week period in a year. I own a lot of the stocks listed to the right, which are having terrific runs. The GMI registered 5 for the first time since August, 2008, before the start of the major market decline. My Successful 10 day New High Index turned positive. There were finally enough stocks that hit a new high 10 days ago that have closed higher than they did 10 days ago.
Stocks on the 52 week new high lists that are also at or near all time highs is where I find potential rockets. Nicolas Darvas made a fortune trading such stocks. IBD100 stocks near all time highs include: GMCR, NFLX, MNRO, QSII, VLGEA, AZO, SNDA, NTES, ALGT. TNDM. TSYS, HGG and ORLY are also very strong, but are not yet on my IBD100 lists.
While most of the world looks for bargain stocks at new lows, I seek rockets heading to the moon. The greatest winning stocks are those heading up to ever higher levels. Think of how many times that YHOO or CSCO or MSFT hit all time new highs as they multiplied their prices many times during their great bull runs. If you want to hop a rocket to the moon, it better be pointing up and gaining altitude.