Stock Market Technical Indicators & Analysis
As long as the 10 week avg (dotted) is below the 30 wk avg (red) and the 30 wk is sloping down, I need to remain very cautious and on sidelines. The gray line is current weekly close and is trying to retake the 30 wk avg. Can it? Sometimes it does and then craters. $IWM looks the weakest of the 4 indexes.
THE GMI=4 and on a Green signal. It is not where I prefer it to be to be long. It is much more profitable to buy strong growth stocks when the GMI=6.
I will explain the Blue Dot set-up during my presentation to the Boston IBD Meetup on 5/21, registration link to come. I am retiring from teaching at the university. My former extraordinary student, Richard Moglen, and I are planning to offer my course on line in the fall through TraderLion! Stay tuned.
The GMI =4 and now meets my criteria for a change to Green. However, I will be much more confident of this change when the GMI=5 or 6, indicating there are sufficient numbers of stocks at new highs. However, it is time to look at the list of stocks that traded at an ATH on Monday. Lists of stocks reaching an ATH often contain huge leaders. It is worth researching their fundamentals and stories. For example, in 2008, after the horrendous market decline, GMCR, the makers of the Keurig coffee machines, rose quickly to an ATH and turned out to become a 13 bagger. The list below is sorted by each stock’s close Friday/close 250 days ago, shown in the last column. All of these stocks are up at least 50% from last year, a good sign of a potential leader. Thus, RGC is 17.4 times its close a year ago. Note also the industries represented and any multiple stocks in the same industry. Education & training, and insurance appear twice, a sign of group strength. Now look for any GLBs and have fun studying them for a low risk setup. Also beware of projected earnings dates, listed in the table.
