Phil's Stock Market Blog

I was checking out that "holy grail" buy signal historically. The ultimate stock scan seems to be combination of a Climax Low plus a Pristine Buy signal, above the 200-day Xma (exponential moving average) and with an RS ranking > 60, sorted by percent of all-time high. We also want to make sure the accumulation / distribution on the major indexes is above 50%. EPS doesn't matter, and neither does price - in fact the cheap stocks usually make the biggest percentage moves.

This stock scan is fairly restrictive. There weren't any symbols that came up scanning Friday's data, but there were 7 symbols that came up scanning Wednesday's data. All of them have moved upward since, some more than others. A scan of Tuesday's data produced just one symbol, as sort of leading indicator for Wednesday's signals. Consistent with the "leader" theory, this stock has done very well, moving from 15.26 on Wednesday morning to 17.38 on Friday's close. By the way, the symbol was PHH.

Market-wise, we appear to have survived a drawn out but non-catastrophic correction. Leading stocks pulled back to support levels on Tuesday and Wednesday, and bounced toward the end of last week. So far so good, except we may be vulnerable on Monday after several days up in a row.