Sunday, July 5, 2009
Market Status, and some Stock Picks
The short Russell 3000 had the breakout from a small cup-and-handle bottom, but then it broke down a couple days later. By now it's returned to about the middle of the cup, price-wise. The basing process continues.
Meanwhile, in the long market indexes we had a buy signal, and then a sell signal a few days later, and then the market got whacked.
So what's going on? Keep in mind that the Climax High and Low signals can mark a long-term top or bottom to the exact day, but they can also be very short term. So the best way to tell what's going on is by looking at individual leading stocks, and by that measure the bull is definitely still intact, recent whack notwithstanding.
Leading stocks like SNX and PEGA are doing well, for example, with solid RS rankings and Accumulation / Distribution percentages, and nice looking patterns.
To get a slightly different take on it, we ran a screen of all stocks, sorted by Accumulation / Distribution percentage, with a limit of 20 symbols. No worry about EPS ranking - in our experience this matters very little compared with a powerful price and volume trend. Also we make no attempt to screen for price. Generally the lower-priced issues are more risky, but they can also produce the more spectacular gains.
From there we hand-selected some interesting symbols into a Symbols List so we can follow them over the next few weeks. Here are links to the charts, with Climax Low flags in cyan, Pristine up signals in purple, and Wm. O'Neil's Follow-through day flags shown in yellow.
GERN
CAEI
OSK
TWB
Meanwhile, in the long market indexes we had a buy signal, and then a sell signal a few days later, and then the market got whacked.
So what's going on? Keep in mind that the Climax High and Low signals can mark a long-term top or bottom to the exact day, but they can also be very short term. So the best way to tell what's going on is by looking at individual leading stocks, and by that measure the bull is definitely still intact, recent whack notwithstanding.
Leading stocks like SNX and PEGA are doing well, for example, with solid RS rankings and Accumulation / Distribution percentages, and nice looking patterns.
To get a slightly different take on it, we ran a screen of all stocks, sorted by Accumulation / Distribution percentage, with a limit of 20 symbols. No worry about EPS ranking - in our experience this matters very little compared with a powerful price and volume trend. Also we make no attempt to screen for price. Generally the lower-priced issues are more risky, but they can also produce the more spectacular gains.
From there we hand-selected some interesting symbols into a Symbols List so we can follow them over the next few weeks. Here are links to the charts, with Climax Low flags in cyan, Pristine up signals in purple, and Wm. O'Neil's Follow-through day flags shown in yellow.
GERN
CAEI
OSK
TWB
// posted by gigascanner @ 4:30 PM 
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