Originally Posted by
Harry
Hello Mike,
Please permit me to ask another question. I noticed ODFL did not make the High Growth list this week, yet is was listed last week. Inspecting the chart, the stock held up well last week. Wondering if anything changed in the fundamentals or technicals that caused ODFL to be omitted this weeks Buy list? Or was this purely a market state decision to keep the # of stocks on the Buy list limited to the very best?
Harry
Harry,
ODFL is okay and may work. When I inspected ODFL over the weekend I noted that its earnings were okay but just okay. In this iffy market I asked myself the question if I would buy it if it broke out in this market and I said no and dropped it off the main list. I kept it on the volume trigger list. I will more likely buy a volume trigger alert if I can get it right at the moving average than buy a breakout even if the selection has a few flaws. This is because the risk is lower when bought properly.
In the mean time the market may or not be bouncing. When ever we pulled back in the recent past we usually heard that there is no volume. The market has not had a 10% correction in over 33 months (tying a record), many of the bounces began with light volume. One of these days a light volume bounce will roll over into a real correction and surprise us all.
VIPS is showing a volume trigger alert. I will watch and not play. I want to see some evidence that stocks can have an upward thrust and then follow up with an advance. The action of leading stocks will lead the way up or down.
Mike Scott
Cloverdale, CA