Stock Market Technical Indicators & Analysis
Dr. Wish 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.
UBER is above it last green line but just below its ATH of 87, see monthly chart. I did not draw a new green line at 87 because the GLB (green line breakout) did not hold. Notice how UBER stopped in February at the green line and broke through on Friday, see daily chart. Be careful, earnings are expected on May 7. Last February, UBER took off with earnings. Will it repeat this week? Holding through earnings is risky and a gamble. Note the blue dot signals, to be explained at my free Boston IBD Meetup presentation on 5/21. Register in advance when they release the meeting link and you will also receive the session recording.
GMI=4 and could turn Green on Monday. This rally could still end after earnings season. Bottoms often occur in October. Until then, I ride the up-trend, a little. But I remain largely on the sidelines until the Stage 4 down-trend in the indexes should end.
