As we are making lower lows in the Nasdaq Composite, the % of stocks participating in the rallies increases. This is exactly the opposite to what we were seeing in the November highs when we said that the market is topping. This is great bullish sign.
IDEA 3 OF 3 As the market transitioned from high volatility bear market to a low volatility bull market we saw that the VIX was transitioning and once it pushed BELOW the 20 level it stayed long term there giving ability for the market to rally up. We want to use this precedent to study the current market and determine probable direction.
IDEA 2 OF 3 A level under 20 is generally where we see the market rallying. Currently we are above 20 but this is still elevated compared to the times we are trending up.
IDEA 1 OF 3 The bear market has been characterised by a moves of the VIX between 20 and 32. We will see if the current market has legs by the way it acts from here. Idea 2 will show how the VIX acts when we are easily moving up
HOW-TO instruction. This video shows how my custom IBD Market School Indicator works for TradingView. –––––––HISTORY & CREDITS––––––– This indicator is based on the Market School Program from IBD and it is the core logic for which I have developed the indicator. The whole system is based on the model books for the greatest winning stocks from the past. The names...
Weekly Review of the US Stock Market
Since 1971 we have had 6 "major" Bear Markets. Average Characteristics of Bear Market 👉 Avg Length: 536d 👉 Avg Depth: -39% Current Characteristics of Bear Market 👉 Length: 282d 👉 Avg Depth: -28% But as I have shared before around the web - the Length and Depth depend wether we have a recession or not. FULL ANALYSIS HERE (this part starts +17:00 in): ...
What is the Cup and Handle Pattern? One of the most important chart patterns in the stock market is the Cup and Handle Pattern, invented by William O’Neill. Sometimes you might see it abbreviated as CWH. It also holds the crowd proclaimed title as one of the most profitable and reliable breakout patterns. The Cup and Handle Pattern forms as a bullish...
In 2022 we got 2 of the top 10 Worst CPI Market Reactions The forward looking returns are quite bullish given the other dates.
Moving Stop Loss to Break-even. This makes a no loss trade now.
I like the primary base here. Buying a pilot position into this. RS rating is low = 83 No of funds accumulating is increasing nearly 200 funds as of Sep 22 EPS '23 is breakout @ 1.06 (+212%) Fundamentals are great
The market triggered last week the Ned Davis 3 Day Price Thrust Trigger Indicator - indicator available in my profile. The Thrusts occur when the S&P 500 rises at least 1.5% for one day, at least 1.15% for a second day, and at least 1.5% on the third day. The record since 1970 is perfect one year later. However, the prior18 cases, ending in 1938, only show 11 out...
I like $ADM It is in Stage 2 Uptrend. A low cheat setup. It has great fundamentals. Volume is very quiet/
$TNP shows a good VCP within a Stage 2 uptrend Fundamentals are increasing with all Sales, Margins and Earnings Improving Expexcted 2023 EPS breakout Volume is showing signs of accumulations Industry group is #8 out of #197
Why Stage Analysis Stage Analysis is the very first thing you need to get right or everything else will be unnecessary, according to Mark Minervini. Based on his study 98% of all big winners, dating back from 1800s to current day have been in confirmed Stage 2 BEFORE they made their big move! This makes Stage Analysis a foundational knowledge for anyone who...
$ENPH has been showing the characteristics of a Market Leader - I bought last week. Here is why: 1. Confirmed Stage 2 uptrend 2. 11 week constructive base (Cup and Handle pattern) 3. Strong RS rating 4. Breakout Year on EPS 5. 2 Quarter EPS acceleration
Averaging down is rejected by all big Market Wizards. The problem is that the stock can always go another -90% down. The example of SKLZ shows that after 19 consecutive times the stock decreased -20%, it no where near the average dollar price, if you buy same amount after each 20% decline. In fact, it has to move +300% to get to break-even. How many of your stocks...
Nasdaq is good. It had a FTD and cleared the 50D SMA SP500 is better since it has cleared and is already trading above the 50D SMA for a while DJI is best since it is both above 50DSMA and above the 200DSMA Credit to jpoco $SPX $IXIC $DJI