Stock Market Technical Indicators & Analysis
HLT had a failed GLB and then closed back above its green line on Friday after an oversold bounce, designated by the black dot. People I know are traveling and staying at hotels. I also noticed this weekend that parking spaces were exceedingly rare at Costco and other local shops. The consumer is back.
Home builders are taking off. One way to play it is the 3x ETF, NAIL.
The GMI is strong and GREEN!
The leading successful stocks bought by such greats as Nicolas Darvas, William O’Neil and others are those that go on to a series of all-time highs. These traders tended to buy when a stock hit an ATH, consolidated, and then broke out to a new ATH. That is the idea behind my green line breakout (GLB) setup. I draw a green line on a monthly chart at the price bar during which an ATH was reached that was not exceeded for at least 3 months (bars).
Look at this monthly chart of PHR. In April, PHR reached an ATH= 149.87 that was not surpassed for at least 3 months. That is where I drew the green line and set an alert in TC2000 to tell me when/if it ever trades above that green line. The daily chart below shows that PGR had a GLB on October 13 on unusually heavy volume, a good confirmatory sign. PHR never closed back below its green line (which would be a failed GLB) and closed Friday at 163.72, up +9.2% from the green line. PGR has an IBD/MS Composite rating=96. I always check out IBD/MS fundamental ratings before buying. I want to buy advancing stocks that have great fundamentals.
Buying GLBs can be very profitable during market up-trends, but most people think it is better to buy stocks at lows–WRONG!!! I buy high and sell higher. We want to hitch a ride on the way to the moon. Other stocks I have noticed that recently have had a GLB are: CMG, MSFT, DUOL, MPTI, QLYS, HLT, CAH, CRH, WING, RACE, V, COR, AIR, ITT, L, CNM. Check them out. Why bottom fish or buy stocks way down from their ATHs when there are so many rockets taking off to ATHs and to the moon. It takes a rocket scientist! Once I buy a GLB, I sell immediately if it closes back below the green line. If I miss the day of the GLB, I will buy it afterwards if it exhibits another of my entry setups. I only buy stocks trading above their last green line tops!
The GMI= 6 (of 6) and Green. Time for me to be invested long.
