12-10-11 Comments

[Mike]

Yesterday volume was too light to create a follow-through day. We still are dancing with the 200-day. I looked back a ways in history and found that the 200-day dance lasted almost six months during 2002. So we could be in for a marathon. The lows of the NASDAQ are above the 50-day however which is a B6 buy signal, so we have one buy signal in the pocket incase the buy switch gets turned on.

In case there is a follow-through day I list some stocks below for your reading pleasure.

There are six stocks that are members of the IBD 50, IBD Big Cap 20 and IBD 85-85 index:
BIIB, V, GOOG, ISRG, TJX, BBBY.

These stocks are members of the IBD 50, IBD 85-85 and the IBD New America Index:
HLF, NUAN, MELI, RGLD, HANS, ROST, TIBX, DLTR, RHT, PNRA, AUY, ULTA, TDG,ALXN, CVLT, HIBB, TSCO, GOLD, and HUM

These stocks are a member of one of the IBD indices and the Relative Strength (RS) line is in new high ground:
GOOG, SWI, HMSY, GTLS, TYPE, TLEO, FICO, ARG, ARBA, WXS, WRLD, JKHY, JDAS, DCI, ODFL, CACC, CRMT, DXPE, TISI , TAST

[grems8544]

Thanks Mike.

Could you post your annotated signal chart so that I could compare to mine?

Regards,

pgd

[mnoel]

Yesterday volume was too light to create a follow-through day. We still are dancing with the 200-day. I looked back a ways in history and found that the 200-day dance lasted almost six months during 2002. So we could be in for a marathon. The lows of the NASDAQ are above the 50-day however which is a B6 buy signal, so we have one buy signal in the pocket incase the buy switch gets turned on.

In case there is a follow-through day I list some stocks below for your reading pleasure.

There are six stocks that are members of the IBD 50, IBD Big Cap 20 and IBD 85-85 index:
BIIB, V, GOOG, ISRG, TJX, BBBY.

These stocks are members of the IBD 50, IBD 85-85 and the IBD New America Index:
HLF, NUAN, MELI, RGLD, HANS, ROST, TIBX, DLTR, RHT, PNRA, AUY, ULTA, TDG,ALXN, CVLT, HIBB, TSCO, GOLD, and HUM

These stocks are a member of one of the IBD indices and the Relative Strength (RS) line is in new high ground:
GOOG, SWI, HMSY, GTLS, TYPE, TLEO, FICO, ARG, ARBA, WXS, WRLD, JKHY, JDAS, DCI, ODFL, CACC, CRMT, DXPE, TISI , TAST


FYI. Here is the list of passing stocks using the CANSLIM 3rd edition screen filter of the investor pro software of the AAII as of today:

ABMD, INT, LKQX, MELI, RAX.

Here are the screenig criteria:

O'Neil's CAN SLIM Revised 3rd Edition Screening Criteria

The growth rate in earnings per share from continuing operations between the last reported fiscal quarter (Q1) and the same quarter one year prior (Q5) is greater than or equal to 20%

The growth rate in earnings per share from continuing operations between the last reported fiscal quarter (Q1) and the same quarter one year prior (Q5) is greater than the growth rate in earnings per share from continuing operations between the reported fiscal period two quarters ago (Q2) and the same quarter one year prior (Q6)

The growth rate in sales between the last reported fiscal quarter (Q1) and the same quarter one year prior (Q5) is greater than 25%

Earnings per share from continuing operations for the last reported fiscal quarter (Q1) is greater than zero (is positive)

Earnings per share from continuing operations for the last trailing 12 months (last four fiscal quarters) (12m) is greater than earnings per share from continuing operations for the last reported fiscal year (Y1)

Earnings per share from continuing operations for the last fiscal year (Y1) is greater than earnings per share from continuing operations from two fiscal years ago (Y2)

Earnings per share from continuing operations from two fiscal years ago (Y2) is greater than earnings per share from continuing operations from three fiscal years ago (Y3)

Earnings per share from continuing operations from three fiscal years ago (Y3) is greater than earnings per share from continuing operations from four fiscal years ago (Y4)

The consensus earnings estimate for the current fiscal year (Q0) is greater than fully diluted earnings per share from continuing operations for the last reported fiscal year (Y1)

The compounded, annualized growth rate in earnings per share from continuing operations over the last three years is greater than or equal to 25%

The current stock price as a percentage of its 52-week high is greater than or equal to 90%

The percentage rank for relative strength over the last 52 weeks is greater than 80

There are at least 10 institutional shareholders

The number of shares purchased by institutions over the last quarter is greater than or equal to the number of shares sold by institutions over the last quarter

Martin

[Mike]

QUOTE=grems8544;19203]Thanks Mike.

Could you post your annotated signal chart so that I could compare to mine?

Regards,

pgd[/QUOTE]

Attached is the annotated Market School signal chart...
This is the latest I have which is Thursday market close. I expect to see yesterday's close chart sometime this weekend. Yesterday should add a B6 signal, low above the 50-day.

Remember that an S5 signal resets B3, B4 and B5 signals and an S9 resets the B6 signal. We got both S5 and S9 on Thursday. This reset also means that the reset signals prior to the reset are not counted if and when the buy switch goes on. This is a phenomena for the potential-rally low to the Follow-Through Day only. After the reset we can have another B6 which is what happened yesterday. The exposure count is 0, we have that one B6 buy signal in the pocket that will be counted if not reset and we get a FTD. The Distribution Count is 4. Two distribution days came off the chart (grayed out) when the index went up 6% intraday above the close values of those particular distribution days. I think that happened on Dec. 5th. On Dec 7 another distribution day fell out of the 25-day lookback window and then 12/8 we got another day of distribution.





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