Wishing Wealth Blog

30th day of QQQ short term up-trend; RWB stock: DKS

2012-02-09T04:21:55Z

There were 269 new highs and only 15 new lows on Wednesday. A stock with good fundamentals and hitting a new high is DKS. This weekly GMMA chart shows it to be an RWB stock breaking out of a base. Click on chart to enlarge.

gmi: 6
gmi-2: 6
t2108: 87

29th day of QQQ short term up-trend; Darvas stock: PXD

2012-02-08T03:24:45Z

Another stock that came up on my Darvas scan is PXD. PXD recently broke to an all-time high. Check out this weekly chart.

t2108: 88
gmi-2: 6
gmi: 6

28th day of QQQ short term up-trend; JAZZ: cup-with-handle break-out

2012-02-07T14:41:19Z

JAZZ has a great technical pattern and may have had a cup-with-handle break-out. See this weekly chart.

JAZZ is also a RWB rocket stock.

gmi: 6
gmi-2: 6
t2108: 87

27th day of QQQ short term up-trend; T2108 at 88%

2012-02-06T04:15:44Z

T2108 doe not go much higher. While the long and shorter term trends remain up, I am looking for a post earnings release lull.

The GMI flashed a buy signal on December 23rd, which is still in place. Since December 23rd, the QQQ has advanced +10.7%, the QLD +22.2% and the TQQQ +34.7%. Meanwhile during the same period, only 12% of the Nasdaq 100 stocks and 11% of the S&P500 stocks have advanced 20% or more. The 3X bullish semiconductor ETF, SOXL, rose +52.8% during this period. The 3X leveraged ETF’s outperform almost all stocks and are much easier to select than individual stocks. I learn this lesson during each multi-week up-trend. Why try to identify the rare stocks that will outperform a 3X ETF?! Just pyramid up on the ETF.

I have many positions where I sold cash secured put options that should expire worthless in two weeks. I will then look to open new covered call positions or sell new cash secured puts.

gmi: 6
gmi-2: 6
t2108: 88

26th day of QQQ short term up-trend: Darvas stock: KWR

2012-02-03T11:59:53Z

My DARVAS scan picked up 22 stocks. These are stocks that meet criteria similar to those used by the great Nicolas Darvas , when he made 2 million dollars trading in a two year period in the 1950′s. (See his classic book listed on the lower right of this site.) One of these stocks is KWR, which is just at its all-time high. If it breaks through, I think this could be a winner. Here is a weekly chart of KWR and here is its Yahoo profile. Click on chart to enlarge.

gmi: 6
gmi-2: 6
t2108: 85

25th day of QQQ short term up-trend; 437 new highs; TCO zooms

2012-02-02T03:56:46Z

The Worden T2108 , at 86%, is near the highest level it typically reaches on rallies. There were 437 new 52 week highs on Wednesday, the most since last July. Of the 34 stocks hitting new highs and having good fundamentals, eight had recent quarterly earnings gains of 100% or more: MON,TCO,MDCO,BCH,URI,ALXN,AAPL,WCG. Of these, TCO, BCH, ALXN, and AAPL are at all-time highs. As this weekly chart shows, TCO broke from a cup-with-handle base a few weeks ago. Click on chart to enlarge.

gmi: 6
gmi-2: 6
t2108: 86

24th day of QQQ short term up-trend; AAPL soars

2012-02-01T11:04:08Z

Short and longer term trends remain up. On Tuesday, 285 stocks hit new 52 week highs and only 17 hit new lows. As this monthly chart shows, AAPL continues to soar.

gmi: 6
gmi-2: 6
t2108: 83

23rd day of QQQ short term up-trend; leveraged 3X ETF’s shine again

2012-01-31T04:08:35Z

Since the GMI flashed a by signal on December 23rd, the QQQ has advanced +7.8%, the QLD +16% and the TYH +24.7%. In the same period, 30% of the Nasdaq 100 stocks have advanced 10% or more and only 5% have advanced more than 23%. Yet again, we find that riding a triple leveraged ETF in an up-trend beats almost all other stocks. Why do we search for the rare stock that will outperform the 3X leveraged ETF , like TYH! Another leveraged ETF that did as well as TYH during this period is TQQQ. In fact the leveraged ETF, SOXL, advanced +34.4%!

gmi: 6
gmi-2: 6
t2108: 83

22nd day of QQQ short term up-trend

2012-01-30T03:27:10Z

GMI remains at 6 (of 6). T2108 is still in overbought territory, as is the QQQ daily 10.4.4 stochastics, now at 86. Gold (GLD ETF) still appears to be headed higher. With earnings season almost over, we could enter a period of retracement and consolidation. The key is to wait for a signal rather than to act in advance.

gmi: 6
gmi-2: 6
t2108: 85

21st day of QQQ short term up-trend; GLD breaks down-trend

2012-01-27T13:04:02Z

The up-trend in the QQQ continues. I have written about the probable down-trend in gold, as measured by its ETF, GLD. However, you can see from this daily chart that GLD broke its down-trend on Wednesday on above average volume. Since I already own an in-the-money put option on GLD, I have purchased 100 shares of GLD, which are now protected by my put option. When I buy an in-the-money put option, and the stock reverses, I can always just buy the shares and keep the put option as insurance against a resumption of the down-trend. If the stock resumes its down-trend I can just sell the shares and retain the put option. Click on this daily chart of GLD to enlarge.

gmi: 6
gmi-2: 6
t2108: 85