General Market Index (GMI) table

Given my renewed interest in yellowband stocks, I created a simple scan that looks for stocks up at least 70% from their 50 week low, are within 20% of their 20 week high, are in a yellow band pattern and have regained their 10 week average last week. One of the interesting stocks to satisfy these criteria is UCTT. This weekly chart shows that UCTT rose on above average volume last week, is above its last green line top, and may be emerging from a cup and handle base. Note also from the statistics at the top of this chart that its most recent earnings were up +2850% with revenue up +76% and that the stock has already quadrupled over the past 12 months. Its next earnings are to be released on 10/25/2017.

This weekly yellowband chart shows UCTT was in a multi-month yellowband pattern with the stock closing (solid line) above its 10 week average (dotted line), which was above its rising 30 week average (red line). The purple dots indicate the weekly lows and show that the lows each week tended to be above the 10 week average until the stock formed the recent base.

If I bought UCTT based on its yellowband pattern, I would consider selling or reducing my position if it closed any week (or day) back below its rising 10 week average. Other noteworthy stocks to come up in this scan were: NVDA, FSLR, LOXO, EXEL, HNH, NVMI and CORT.

You can run this scan yourself (09162017yellowband…..)  in TC2000 by joining my club and also get some of my other scans. Just go to www.wishingwealthblog.com/club. The glossary on this blog describes the logic of most of the scans. And follow me on twitter @wishingwealth for intraday alerts–all of this information is for educational purposes only, no guarantees of any kind! Remember, most successful traders are only right on about 50% of their trades.

The GMI  is at 6 (of 6) and the GMI-2 is 8 (of 8). I am watching inflation indicators closely to see if the Fed may tighten sooner than everyone expects. That will kill this bull…

On December 29, 2014 I posted the following about INGN:

“My great stock picker friend, Judy, knows someone who needs to be on oxygen. Judy discovered that there is a product made that is very mobile, light weight and has a great battery. She claims that it beats the competition and makes a huge difference to people who must be on oxygen. So Judy researched the product and identified its manufacturer, INGN. Judy does very well by picking stocks that have a great concept underlying their product. She bought some INGN.

INGN is a recent IPO and is scheduled to make some investor conference presentations in mid-January.   The stock may therefore be volatile in the coming weeks.   Nevertheless, I bought some INGN. By the way, INGN had a green line break-out in November, consolidated, and then moved up. Check out its weekly chart. It has already doubled.”

This weekend I was watching TV and saw for the first time an ad for INGN’s mobile oxygen unit. It showed one person bogged down because he was connected to a traditional oxygen unit and another going about town with INGN’s portable mobile unit. Judy told me about Inogen’s  great concept 3 years ago. Unfortunately, I rode INGN for only a short time, much less than Judy did. I was shaken out in 2015’s decline. My mistake was to not buy it back when it recovered and had a new green line break-out at $55.98. One must always continue to monitor promising growth stocks that undergo a decline to see if there is  a new GLB. Check out this monthly chart of INGN. At the time of my post in 2014, INGN was at $30.25. INGN closed Friday at $103.05. Maybe their new advertising campaign is going to breathe new life into the stock. A lot of boomers will need to be on oxygen in coming years–or even after a hurricane…

My experience with INGN shows the virtue of investing in companies with innovative products. A company with a great concept and strong technicals is much easier to invest in and hold for the long haul than an investment based on just a good chart.

The GMI remains at 6 (of 6):