Mike
01-19-2015, 10:53 AM
IBD has the market in correction, the NASDAQ buy switch is still on in the MarketSchool Model however with zero exposure. The model will use any market buy signal to begin adding to the portfolio. The most likely near-term buy signals would come from the lows of the NASDAQ trading above either the 21-day or 50-day or an accumulation day. Any FTD-sized event that closes in the upper quarter of the range that additionally closes above the 21-day would be called a B7 accumulation day and a buy signal. A regular FTD would need to come on day-4 or later of course which would need at least three more days (Thursday). The MEM will keep the buy switch on until the distribution count climbs to 6 (with zero exposure) or we undercut the rally begun off of the Oct. 15 2014 lows (4116.60). We are far away from either of these events.
With the ECB probably announcing some sort of QE this week volatility could be high. Whether or not if the Market Exposure Model or IBD goes back into a buy mode I note that growth stocks have not performed well since mid last year. I still own NXPI and BIIB long but I am not in a buy mode for new long positions. My short of HIMX is performing well.
I have updated watch lists. We are in earnings season which could provide a source of extra volatility. None of the items on my long watch list have report yet so be cautious. The following table is the watch list along with the number of calendar days until each company reports. SWKS and UAL report this week.
27983
Until I see growth stocks perk up my focus will be more to the short side, looking at: CAR, GILD, INVN, NFLX, SHPG, SLXP, TSL and UBNT.
With the ECB probably announcing some sort of QE this week volatility could be high. Whether or not if the Market Exposure Model or IBD goes back into a buy mode I note that growth stocks have not performed well since mid last year. I still own NXPI and BIIB long but I am not in a buy mode for new long positions. My short of HIMX is performing well.
I have updated watch lists. We are in earnings season which could provide a source of extra volatility. None of the items on my long watch list have report yet so be cautious. The following table is the watch list along with the number of calendar days until each company reports. SWKS and UAL report this week.
27983
Until I see growth stocks perk up my focus will be more to the short side, looking at: CAR, GILD, INVN, NFLX, SHPG, SLXP, TSL and UBNT.