Stock Market Technical Indicators & Analysis
DELL had a blue dot after earnings in early September and again a few says ago. It also had a pink dot today, indicating a bounce off of the upper 15.2 Bollinger Band. This could provide some resistance. I will explain my charts and symbols and how to get them during my MoneyShow presentation on October 20. Register free here.
I will not let all of the gossip about bad market breadth deter me from riding strong stocks. The dotted line represents the daily closes. This is a RWB up-trend. The blue dots are the daily low prices.
I think this market is strengthening into 3rd quarter earnings. Many down markets have bottomed in October. Remember to “come back at Halloween.” So there were 35 stocks at an ATH on Friday and one of them, ARW, was a high volume GLB. A GLB must not CLOSE below its green line. If it does I sell it immediately. For ARW, the green line is at 237.33. Rather than using a physical stop on a GLB I have purchased, I look at it each day around 3:45 PM to see whether it will likely close below the green line. Many successful GLBs trade intraday below the green line but rally to close above it and I would have wanted to retain it. In such a case a stop loss below the green line might have sold me out even though it closed back above the line. I only want to sell it immediately if a GLB closes back below the green line. If it closes below the green line and then closes back above it I may buy it back. I will discuss GLBs on my MoneyShow talk on October 20.
