Stock Market Technical Indicators & Analysis
One of the few GLB stocks which I wrote about in December , KL, is successful and continues to climb.
The GMI remains at 3 (of 6) and on a Red signal. 72 new highs on Friday is the most since 107 was reached on December 5th. If we can get back to 100 new highs, the GMI could turn Green. Note that the IBD Mutual Fund Index (0MUTI) is now back above its 50 day average.
Three growth stocks have broken through their green line bases to an all time high (GLB) last week. CRON may do so Monday. Here is one example (weekly charts). I always sell any GLB stock that closes back below the green line.
CRON (a marijuana related company) is close to a new all-time high :-).
While some stocks are breaking out, the GMI remains Red. If I buy anything in this situation I put in close sell stops. The GMI signal turns Green only after a new up-trend is established.
During this down-trend there are still a few growth stocks (about 10) hitting all-time highs (ATH). DORM is one, as shown by this weekly chart. Note last week’s above average volume at the Green Line Break-out (GLB, see blog glossary). I wrote about FN last week.
The indexes are right up against resistance after the snap back rally. Daily stochastics are very over bought. This week should tell whether we re-test the lows or break through.
