Darvas

No change in the GMI (+6) but the tech leaders are showing some signs of weakness.  Only 35% of the Nasdaq 100 stocks rose on Wednesday, compared with 65% of the S&P 500 and 63% of the Dow 30 stocks.  There were 237 new yearly highs in my universe of 4,000 stocks, but only 10% of stocks that have doubled in the past year hit a new high on Wednesday.  Leaders that are downgraded by analysts or hit with bad news are gapping down.  AAPL (-3.9%) is just the most recent example, after CMTL and CUTR recently.  I am slowly being stopped out of my holdings because of my close sell stops.  I will be content to buy stocks back at higher prices when/if they strengthen. Wednesday was the 31st day of this rally (U-31).

NOTE:    A NEW SECTION TO THE BOTTOM RIGHT PROVIDES LINKS TO MY FAVORITE PRIOR POSTS.  THESE INCLUDE MY STRATEGY POSTS, DEFINITIONS OF THE GMI COMPONENTS, AND MY ANALYSIS OF WHY THE TRADING TECHNIQUES OF THE GREAT NICOLAS DARVAS WORK BEST DURING BULL MARKETS AT ALL-TIME HIGHS.

How have you used this site to inform your trading?  Can you send me some experiences I can post for others  (anonymously, with your prior permission)?  Please send your pearls of Wishdom to me at: silentknight@wishingwealthblog.com. 

The GMI remains at +6.  There were 256 new highs on Tuesday in my universe of 4,000 stocks.  Between 64-70% of the stocks in the Nasdaq 100, S&P 500 and Dow 30 indexes advanced.  More than one half of stocks (53%) are now in a short term up trend.  Stocks that have doubled in the past year remain strong and 24% of them hit a new high on Tuesday.  Tuesday was the 30th day of the QQQQ up trend (U-30), and the QQQQ has closed above its 10 week average for the past six weeks……….

A few weeks ago CMTL crashed, and on Tuesday, CUTR, another leader, collapsed (-34%).  I have read the ostensible reasons for the drop, but I know from past experience that when leaders hit huge air pockets, it is often a sign of an extended market.  So, I raised all of my sell stops so that I can get out at the first signs of weakness. For CUTR, a stop loss at the ten day average (dotted line) or the 30 day average (red line) would have minimized losses.  The fact that CUTR had found support repeatedly at the 10 day average since its gap up in October, made it a good place for a conservative protective sell stop.  To trade growth stocks without stops is to go sky-diving without a parachute………………………..

NOTE:    A NEW SECTION TO THE BOTTOM RIGHT PROVIDES LINKS TO MY FAVORITE PRIOR POSTS.  THESE INCLUDE MY STRATEGY POSTS, DEFINITIONS OF THE GMI COMPONENTS, AND MY ANALYSIS OF WHY THE TRADING TECHNIQUES OF THE GREAT NICOLAS DARVAS WORK BEST DURING BULL MARKETS AT ALL-TIME HIGHS.

How have you used this site to inform your trading?  Can you send me some experiences I can post for others  (anonymously, with your prior permission)?  Please send your pearls of Wishdom to me at: silentknight@wishingwealthblog.com. 

The GMI returned to the maximum +6 on Monday.  There were 241 new highs in my universe of 4,000 stocks and 105 10 day successful new highs (stocks that hit a new high 10 days ago and closed higher Monday than ten days earlier). 57% of the Nasdaq 100 stocks advanced on Monday, along with 50% of the S&P 500 stocks and 47% of the Dow 30 stocks.  The Dow 30 stocks continue to lag the others.  One half of stocks are in a short term up trend and 21% of stocks that have doubled hit a new high on Monday.  84% of doublers remain above their 30 day averages and 72% closed above their 10 week averages.  The rally is still on track and is in its 29th day.  The leaders are holding up well.  Check out HANS, AAPL, GOOG, NTRI and CUTR………………………

NOTE:    A NEW SECTION TO THE BOTTOM RIGHT PROVIDES LINKS TO MY FAVORITE PRIOR POSTS.  THESE INCLUDE MY STRATEGY POSTS, DEFINITIONS OF THE GMI COMPONENTS, AND MY ANALYSIS OF WHY THE TRADING TECHNIQUES OF THE GREAT NICOLAS DARVAS WORK BEST DURING BULL MARKETS AT ALL-TIME HIGHS.

How have you used this site to inform your trading?  Can you send me some experiences I can post for others  (anonymously, with your prior permission)?  Please send your pearls of Wishdom to me at: silentknight@wishingwealthblog.com.