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So many stocks are breaking out to all-time highs (ATH). Every rocket stock has a long series of repeated ATH. I went to barchart.com and filtered stocks that hit  an ATH on Friday and copied the list to Excel and then to a watchlist in TC2000.  I then used TC2000 to  find the subset that came public since 2015 (created a column with a formula c/c4 set to yearly; those with a result of  ** could not be calculated because they did not trade before 2015). I then manually looked at each monthly chart to find those that had hit an ATH and subsequently consolidated for at least 3 months.  I drew a green horizontal line at the peak price it reached before it consolidated.  I selected those that had a GLB (green line break-out, closed above its green line) recently. I also like to see above average trading volume the week of the GLB.

These recent IPOs are worthy of my researching for future purchase. The great trader, Jesse Livermore, liked to buy the first GLB (he did not use my term!) of a recent IPO. Note that if a GLB stock closes back below its green line, I sell it immediately. I may repurchase it if it closes back above the green line–see the charts of MTCH and SFIX below as examples of GLB failure and rebound. The 19 stocks from this exercise are, in random order: MTCH, PSTG, NTRA, NVCR, NXRT, TTD, TWLO, YEXT, SEND, SFIX, ROKU, RPD, SQ, CISN, CNDT, CABO, CVNA, APPF, ADSW. Below are weekly charts of a few of them. I sometimes tweet GLBs intraday when TC2000 alerts me. Follow my tweets–@wishingwealth.

By the way, while not a recent IPO (in 2011) , MPC had a GLB on Friday, perhaps reflecting strength in oil. Looks like a cup and handle break-out….

The GMI remains on a Green signal and the QQQ has reached the 35th day of its short term up-trend.

Daily stock charts are good for determining entry set-ups and initial stops, but daily charts often mislead me and scare me out of good positions. Before I sell out of a long position I should remember to look at the longer term trends evident in the weekly RWB charts (see glossary). Once my entry set-up holds and I am not stopped out, I could actually just hold onto any equity in an RWB weekly up-trend pattern until the white band in the middle (the W in RWB) disappears.

This chart of QQQ shows that its RWB weekly up-trend pattern has never disappeared since 2017! The 6 shorter term moving averages (red lines) have remained well above the 6 longer term averages (blue) with a white space between them. The dotted line shows each weekly close. Sometimes the dotted line moves below the red lines but as long as the red white and blue pattern persists with the red lines above the blue, the advance is continuing. In fact, in a strong up-trend the equity repeatedly closes the week above all 12 averages. (The exact RWB averages are specified in my blog glossary.)

The SPY lost its RWB weekly pattern for a very short period, but it has now resumed.

A good rule for me is to never buy and to sell or sell short any equity with the opposite BWR weekly down-trend pattern. GE is a great example of a BWR weekly down-trend. Why would anyone ride this stock down after April, 2017?

CAT remained in an RWB weekly up-trend pattern most of 2017 with the dotted line (weekly closes) leading the other averages higher. Once the dotted line moved below the red lines and the red lines converged with the blue there was no reason for me to own CAT.  All stocks I buy or retain must be in an RWB weekly up-trends.

This chart vividly shows a complete advance/decline cycle for DDD from 2013-2015. It all looks so clear and easy in hindsight!

Why did I let myself and urge my son, sorry Mike 🙁  , to get scared out of his great pick, SQ which he bought around $11? I now know why–I focused on the daily chart.

I think the weekly RWB strategy can keep me in a good position and reduce the need to closely monitor and be stressed by the daily back and forth gyrations of any stock or ETF I own….

Meanwhile, reflecting the strength in the QQQ and its weekly RWB pattern, the GMI remains on a Green signal, at 6 (of 6).