Friday, March 27, 2009
What happened?
The rally stemming from the Climax Low signal in the DJIA index on 3/10/09 was a lot more than anybody expected, with considerable staying power.
So was that really the bottom? It didn't quite fit the classical pattern. The Number of Climax Lows indicator (plotted in blue on the default chart) was conspicuously quiet around that time. There was also a surprising lack of a Follow-Through day subsequent to the low (the Follow-Through is the market index signal based on the Canslim theories of William O'Neil).
But stocks went up anyway. Then came a robust round of selling over the past couple weeks, as indicated by the obvious spikes in the Number of Climax Highs indicator (plotted in red). And the market didn't get hammered. Things could change, but for now I take it as a sign of strength.
Stock-pick wise, our timing was perfect. Naturally, the fresher stocks closer to their highs or making new highs at the time are doing the better. NFLX and AZO are doing the best. A number of Auto-Repair stocks have all been doing well. There was also a surprising run in the Restaurant stocks. By the way, you can easily get a feel for the group activity just by watching the default stock scan results table daily (or more frequently).
Website-wise, traffic is pretty slow. But beginning to pick up. We're getting a pretty good position in Google for search terms like Stock Scanner and three-word phrases like Stock Market Scanning and Intraday Stock Scanner. But unfortunately it turns out that some other phrases like "Stock Picks" are vastly more popular. Stay tuned for the cool new Stock Picking version the web site at GigaStockPicks.com. If I can get it on the first page of Google it should be pretty effective.
So was that really the bottom? It didn't quite fit the classical pattern. The Number of Climax Lows indicator (plotted in blue on the default chart) was conspicuously quiet around that time. There was also a surprising lack of a Follow-Through day subsequent to the low (the Follow-Through is the market index signal based on the Canslim theories of William O'Neil).
But stocks went up anyway. Then came a robust round of selling over the past couple weeks, as indicated by the obvious spikes in the Number of Climax Highs indicator (plotted in red). And the market didn't get hammered. Things could change, but for now I take it as a sign of strength.
Stock-pick wise, our timing was perfect. Naturally, the fresher stocks closer to their highs or making new highs at the time are doing the better. NFLX and AZO are doing the best. A number of Auto-Repair stocks have all been doing well. There was also a surprising run in the Restaurant stocks. By the way, you can easily get a feel for the group activity just by watching the default stock scan results table daily (or more frequently).
Website-wise, traffic is pretty slow. But beginning to pick up. We're getting a pretty good position in Google for search terms like Stock Scanner and three-word phrases like Stock Market Scanning and Intraday Stock Scanner. But unfortunately it turns out that some other phrases like "Stock Picks" are vastly more popular. Stay tuned for the cool new Stock Picking version the web site at GigaStockPicks.com. If I can get it on the first page of Google it should be pretty effective.
// posted by gigascanner @ 8:09 AM 
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