General Market Index (GMI) table

One of my favorite scans I created with TC2000 searches for a stock in a strong up-trend, at a  20 week high in relative strength vs. SPY,  that reached an ATH in the past 3 months and that has bounced up off of its rising 4 week average. If I buy one of these stocks I place my sell stop at the bottom of the weekly green bar, see the chart example of ACLS below this list. 29 stocks out of almost 7,000 passed this scan. I sorted the 29 by the amount each stock closed above its 250 day low (c/minl250, see last column). Here are the top 20. Seven of these stocks have at least doubled their low price. Stocks with a blue flag in the first column appear on my watchlist of recent IBD/MS stocks.

ACLS is an example of a weekly green bar stock. (I color green the weekly price bar all stocks that bounced up off of their 4 week average even if they did not survive all of the conditions in the scan.) Note how ACLS found support above its rising 4 week average (red dotted line) the  past 5 weeks. That is a pattern of a strongly advancing stock. A weekly close below the 4 week average would be the first sign of technical weakness and a warning that the rise may end. A weekly close below the 10 week average (blue dotted line) would be a sign for me to completely exit, if I owned it. Note the rising weekly volume as the stock has climbed. Also note the green line break-out to an ATH last week. ACLS  also follows my yellow band rocket stock pattern. According to MarketSmith, ACLS has Composite and RS ratings = 98.  The technicals tells me what to look at and when to enter or exit, but the fundamentals must also be strong.

The GMI remains at 5 (of 6) and on a Green signal. But note that my more short term and sensitive GMI2 components have weakened.

I remember long before the internet that the major media typically called a bear market bottom or bull market top about 6 months after it had occurred. It took that long for the editors to believe a major change in trend. So we cannot trust the pundits to tell us when to get in or out of the market. However, my objective GMI indicator suggests that it may be time to wade back into the market. When the GMI is 6 (of 6) it is likely that a longer term up-trend has begun. Don’t dwell on  the news. The market turned up at the end of March, 2020 near the beginning of the pandemic while most people remained skeptical and were too scared to enter. If we focus on the Fed, the debt crisis and refunding of the government and the war, we have many reasons to stay out. However, as I hear pundits saying to stay away from tech stocks and to invest in income stocks instead, it makes me think a new bull market for growth stocks is on the horizon.

Below is a list of stocks on my IBD/MarketSmith watchlists that reached an ATH on Friday. The list is sorted by earnings release date. Somewhere on this list are some major market leaders. Time to research and monitor them.

One stock not on this watchlist that has a very interesting weekly chart is BWMN. It is a recent IPO and had a GLB (green line break-out to an ATH) recently. As long as it closes above the green line, 22.82, it is a successful GLB. (I could not resist taking a very small position.)

Another interesting chart with a GLB is $WIRE.

The GMI is 6 (of 6) and Green.