I tweeted (@WishingWealth) about the GLB for AUPH intraday on 3/7 when TC2000 alerted me.
One of the signals of a possibly weakening market is that stocks that have broken out fail and return below their break-out points. Among the stocks that did so recently are PJC, AMZN, GS and WB. And while it was not a GLB to an ATH, TSLA also faltered last week. Sure there are still plenty of successful break-outs, but we need to heed when the leaders can’t surge higher. I also remain concerned that the major indexes are floating above their 4 week averages. This weekly chart of SPY provides an example. The red dotted line is the 4 week average. Usually the index will return to at least kiss its 4 wk average.
Nevertheless, among the stocks that came up in my scan for stocks up on high weekly volume and that also proved to be GLB, were VAC, OLED and SP. Check out these weekly charts and their unusually high volume. All have good recent earnings and may be worthy of further research. You can run this scan (11252016……) yourself by joining my TC2000 club: www.wishingwealthblog.com/club. But we must be vigilant for failed break-outs……
The GMI remains at 6 (of 6).
I have noticed over the years that when many of the rocket stocks I follow all move up together the market is often near the end of a move. This happened last week. Also, after earnings season is over, many stocks rest or go into a decline until the next quarter’s earnings come out. Furthermore, the FANG stocks(FB,AMZN,NFLX,GOOGL) have performed poorly after earnings came out, even after a beat. So I am taking action to make sure I do not lose much of my recent profits. I am also not holding anything through earnings and I am raising my sell stops on all of my positions…
GKOS, one of the GLB stocks I have tweeted about has been strong. After a false start, a GLB occurred with high volume and the stock has not looked back, but it has now gone vertical. Note that the first GLB in January failed and was followed by a successful one.This is a common occurrence. I often buy back stocks I have been shaken out of which then go on to produce a profitable trade. GKOS is also a possible cup with handle break-out.
One of the scans (01292017ATHhipast40daysBLBB, see this blog’s glossary for a definition) I released in my TC2000 Club (wishingwealthblog.com/club) identified a recent GLB stock, HQY, in my ATH watchlist that has just bounced off its 15.2 daily lower Bollinger Band. I am watching to see if this stock gains momentum this week. But earnings are due on 2/6. Note the successful GLB in November, followed by a consolidation in December, a rise in January and another consolidation. This is how a growth stock should behave, building base upon base. My strategy is to buy on a bounce off of support or at a break-out from a base on high volume. HQY came public in 2014 and has more than doubled over the past year.
As many of you know, my stock buddy, Judy, has a great ability to pick winners. She has been talking to me about EXEL for some time and I have started monitoring it. While it is not near its ATH ($50.50, the green line below is from an earlier peak) it is showing promising technical strength. Note the series of base break-outs at A,B,C. Judy is a “concept” focused technical analyst and likes to find stocks that she thinks have great products or are in industries of the future. Someone else apparently agrees with her and is apparently accumulating EXEL…..
All of the GMI and GMI-2 components are positive. Friday was the 39th day (U-39) of the current QQQ short term up-trend. Since the first day of that up-trend on 12/8, QQQ is up +6% and the TQQQ is +19.3%. In that time, GKOS is up +29.9%. HQY +14.7% and EXEL +19.8%.
IPGP, a stock that I have been watching at the suggestion of my brilliant stock buddy, Judy, rose nicely on Monday. I tweeted about it (@wishingwealth) early Monday morning when it moved up on unusually high trading volume, and I nibbled at it. Note the recent GLB to an all-time high.
Why is DIS showing such strength?
If you had problems on Monday signing up for my TC2000 Club to access some of my scans and watchlists, please email me at email@example.com. I will then send you the link.
As you know, I like to buy stocks breaking out of their green line tops (GLB) to an all-time high. On my site you can see the performance of a selection of recent GLB stocks. Here is the latest table:
With the p/c ratio=1.10 the market may bounce again on Friday.
I have been buying DBC, the commodity tracking index ETF. This weekly chart is showing a new Stage II up-trend. I will hold DBC as long as it holds its 30 week average (red line).