Phil's Stock Market Blog

There was a nice-looking bounce yesterday as a number of stocks reversed upwards. There was also a corresponding spike upwards in the Number of Climax Lows (the blue line indicator line at the top of the default chart).

We may see a bit of backing and filling from here, but a one-day whack like we saw on Monday is not enough to break the uptrend.

The market runs up for 5 or 6 weeks straight, and then people want to buy stocks! It's a normal human behavior pattern, but it's the exact opposite of what we need. Odds favor a correction, and most stocks will participate. We'll see how the day and week unfold. I don't think the longer term rally is over, but this could change if we start to see some serious distribution.

TSYS is another stock doing the base-on-top-of base thing.

GigaScanner Rankings for TSYS:
EPS Earnings Per Share Rank: 75%
Relative Strength Rank: 98%
Accumulation / Distribution: 64%

Check it out at GigaScanner.com

SNX looks very powerful, about to break out of a base on top-of-a-base.

Same thing could be said about LANC.

These stocks were early leaders. They ran up and have been consolidating while other stocks are just now getting to that point. I think they'll start to pop again now as a lot of other stuff takes a rest.

Somebody saw my last post and wanted to know what stocks were good to buy, so I got to looking.

But I couldn't find exactly what I was looking for, timing-wise. I noticed that most all the leading stocks have run up a ways from their breakout points, which means that we're due for a correction. Things are still looking very bullish, but ironically there will still be a few down days here and there.

Notwithstanding some bottomed-out penny stocks that look ready to move, one stock that looks very promising is LANC. It's currently forming a base on top of a base, with a relatively tight trading zone. It has already been consolidating, and I think it will resume it's upward climb very soon.

Other leaders like AZO are due for some consolidation.

I recommend the Gigascanner for managing stocks. You can save your favorite symbols in a list and cycle through them, waiting for the perfect moment to jump.

The market has followed through in a huge way rallying from the lows of March 9th, and stocks are breaking out all over the place to an extent we rarely see.

Now's the time to throw the book at it. Take the plunge, stocks don't get this bullish very often. The simplest and possibly most effective way to capitalize on it is to put the stock screener to work. Use it to find stocks making new highs, with a good Relative Strength Rank, EPS rank, Accumulation/distribution percentage, and a good looking base pattern. Then just buy a handful of the strongest ones and hang on for the ride.

My personal favorite stock scanner is at gigascanner.com or our new stock-picking site gigastockpicks.com. There's a lot to like about these free web-based trading tools.

I see now that there were some follow-through days up off the low afterall. Didn't realize I had the flags (otherwise known as Paintbars) turned off.

Clearly the GigaScanner is just too hard to figure out. But nobody can suggest a way to simplify it, considering all the functionality available. Some have suggested that I make an instructional video. I think I will.

The latest addition is scans for the Pristine Trader setups. A buy signal is 3 or more down candles followed by an up candle, and visa-versa for a sell signal. I also updated the flags so you can see the price bars light up when the signals are hit. I haven't updated the metrics table yet (which keeps track of the "numbers" of conditions being hit). Not sure how important it is to view this particular set of conditions as a breadth indicator, but I should go ahead and do it.

Note: The Pristine scans are only available with a paid account, and using the Deluxe interface.

Also still chipping away at GigaStockPicks.com but Stock Picks is a very competitive set of keywords in Google. It's virtually impossible to show up in the search results anywhere near the first page.

Well, all that distribution finally lead to a price drop, but it didn't amount to much. Prices hesitated, and then started moving up again. All signs are bullish, except we're still waiting for a follow-through day. It's strange that we haven't seen one.

Notwithstanding, the Accumulation/Distribution indicator is a healthy 58% in the Nasdaq, which appears to be forming a handle section of another cup and handle base pattern. The cup began with the Climax High signal on 2/10, and bottomed out on 3/9. The handle began on 3/24, after prices made it back up from the low of the cup. See it gigastockpicks.com, the Symbol is 'NASDAQ'

It could be the real thing. We'll know better if it breaks out from here. We could get the follow-through action at that time. Meanwhile the leading stocks are still doing well.