7-1-16 morning comments
Yesterday, IBD posted a day-3 follow-through day. These are very rare, and the historical sample size is too little to create an absolute rule. If one created a rule, yesterday would have to be included. I can add that June/July FTDs rarely succeed. If we are in a bear market (don't know), there have been zero bear market FTDs leading to a successful rally without a confirming Coppock buy signal. We are nowhere close to a Coppock buy signal. So I go with the flow. I continue to hold GIMO and PLAY. I missed the move in REITs (COR, CONE), I believe REITs represent a play for dividends, and the yield desire is so great that the asset prices are being driven up.
I don't trust Chinese financial reporting, so I passed on the NTES breakout. NTES is one of the few stocks with fundamentals breaking out of a chart pattern. The handle of the cup and handle formation had too much volume for me. Very few quality stocks are breaking out of sound chart patterns.
Mike Scott
Cloverdale, CA