My Favorite Posts

My adapted daily GUPPY, GMMA charts tell me when an up-trend has ended. My former student, Richard Moglen, tells how to build them using TC2000. As long as the shorter term (red) averages are rising above the longer term (blue) averages with a white space separating them, RWB, the up-trend is intact. When the white space disappears it is time for me to raise stops and/or exit. When the pattern reverses to BWR, I am out or short, see TSLA. The dotted line is the daily close. Check out these charts. A picture is worth how many $$$$?

At the IBD Meetup last night I showed how to spot a GLB and explained how to use my green/black/blue dot setups. These are oversold bounces. I meant to say if one missed buying near when the GLB occurred, they could wait to buy it later if it had a green/black or blue dot setup. The chart of VRT shows the GLB last August. Note the many subsequent setups (dots) at which  one could have purchased it.  Thank you, Judy, for leading me to this example. I am in the process of making the recording of my remarks available to all. Stay tuned.

I have noticed that in a strong market, it is sometimes profitable to buy a stock that has reached an all-time high after a recent GLB, declined to oversold, and then turned up. I scan  for such stocks with TC2000 and found GNE today. I bought a little GNE and placed my stop below the low of the bounce. If I am wrong, I get stopped out with a small loss. If I am correct, maybe GNE will go on to new highs? It has already tripled this year’s low. Maybe it will triple again?I had noticed GNE when it came up on my GLB (green line break-out) scan on October 11 (see GLB tracker to right). It since has held its green line (at 17.80) and advanced to as much as +43%. Now that it has bounced from oversold I couldn’t resist a small purchase. GNE has an IBD/MS Composite rating= 96 and RS=98. Note the black dots designating oversold. My late co-instructor, David McCandlish, built this tutorial showing people how to add the back and green dot signals to their charts using TC2000. His youtube page shows more tutorials he built for my class.

Here is its monthly chart.