Markets Mostly Higher But Volume Low -
"From The Trading Desk" May 7, 2007: Is the current rally getting tired? The Nasdaq, S&P500, and Dow all made new recent highs on lower volume. The volume was especially low on the Nasdaq and S&P. The Nasdaq was down fractionally while the Dow and S&P were up a bit.
CNS, AAPL and IGLD were up on heavy volume. The solar group was mixed with FSLR making a new high on big volume. SPWR was down on strong volume.
CNS, AAPL and IGLD were up on heavy volume. The solar group was mixed with FSLR making a new high on big volume. SPWR was down on strong volume.
SYNL was up 4% on an almost 400% volume increase. The last base for the stock was early this year. GSOL looks to be setting up again for a Cup With Handle breakout, but it's burned us before on a steep breakout attempt.
ROCM is back at recent new lows after it's recent collpase. CYNO was up again on strong volume but it's extended. WFR is meeting resistance at the 50 day moving average. AL was up 34% on a takeover bid by Alcoa. The Shanghai market was up 2.2% today.
"Current Market Pulse":The market is in a confirmed rally and slowly moving higher. Although things are looking OK today, caution is still advised. We are at lofty short-term levels and lesser-quality names are leading the rally. I am recommending caution. Sell your weaker acting stocks. Come off margin. Buy only the best CAN SLIM stocks like the ones we suggest. Only buy stocks that are emerging out of a solid and proper basing pattern on big volume. See our "Buy" list for candidates. Always cut your losses at 7%-8% below your purchase price No Matter What.
"Market-Leaders" Moving-Up on Volume: AL, SYNL, CYNO, FSLR, AAPL, IGLD
"Market-Leaders" Moving-Down on Volume: GROW, SPWR
"Let That Be a Lesson" - The Top Three Chart Patterns In Growth Investing.
These chart patterns are the "bread and butter" of good stock trading. Get to know them and they will serve you well now and in the future.
These chart patterns are the "bread and butter" of good stock trading. Get to know them and they will serve you well now and in the future.
CUP-WITH-HANDLE - This is the best chart pattern a growth stock can have.
- The base must be at least 7 weeks in length, but it can last up to 65 weeks.
- The stock usually corrects 20-30% from the high, but up to 50% in a bear market.
- The handle usually lasts a week or two and should drift sideways or down along it's lows.
- Handles usually correct 10-15%, but up to 20-30% in a severe bear market.
- Handles should form in the upper-half of the cup, preferably within 15% of the old high.
- The handle should form above the 200-day moving average.
The buy point occurs when the price moves above the high of the handle on an increase in volume of a least 50%. The Relative Strength line should lead or closely follow the stock's price into new high ground.
DOUBLE BOTTOM - This is a common base with a good performance history. The price pattern looks like a "W." It should be at least 7 weeks in length.
- The stock starts to correct and then stops, putting in the first part of the "W."
- It then rallies, forming the middle part of the "W."
- The next leg is formed when the stock falls again.
- The final part of the "W" takes shape when the stock rallies again.
The second leg down of the "W" should undercut the first to shakeout the weaker holders. The "pivot point" or buy point occurs when the stock clears the middle part of the "W" on heavy volume.
FLAT BASE - Another very successful and common chart pattern, but it can be as short as 5 weeks in length. This base usually occurs after the stock has broken out and ran up from another base.
- The stock appears to move sideways and usually corrects just 8-12% from it's peak.
- There should be at least one period during the base where the volume drys up at least slightly.
The "pivot point" or buy point occurs when the stock moves above the high of the base on heavy volume.
You will see these patterns over and over if you look at the latest winning stocks or winners of the past. Learn to recognize and trade them and your investing results should improve substantially.
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We don't issue lots of stock-picks like the others. But the ones we do are Powerful Stocks that have the potential for gains of 50%-100%, 500% and more.
Sure, our stocks have huge earnings, showing tremendous recent strength, and are being accumulated by the top money managers on Wall St. But it's not enough just knowing their names. You have to know how to trade them. When to buy them and when to sell. Since the average high-growth stock eventually goes down over 70%, this knowledge is valuable. Sign-up today for your FREE TRIAL
Good trading is all about having solid and proven trading rules like the ones I use every day. Rules developed by the world's best traders like William J. O'Neil and Jesse Livermore. You can read more about them here:
THE TOP 12 RULES OF INVESTING You Need To Know
THE TOP 12 RULES OF INVESTING You Need To Know
Happy Trading,
Mark Gordon
GOLDENTICKER.COM
Past performance does not guarantee future results. Investing in stocks, bonds, ETFs, and mutual funds involves risk and loss of capital can occur. Consult with your financial advisor before investing in the stock market or making any investment decisions. This blog/website is solely for informational purposes and is not an offer to buy or sell or solicitation of an offer to buy or sell any security or investment product. This material is not to be construed as providing investment services in any jurisdiction where such offers or solicitation would be illegal.
Mark Gordon
GOLDENTICKER.COM
Past performance does not guarantee future results. Investing in stocks, bonds, ETFs, and mutual funds involves risk and loss of capital can occur. Consult with your financial advisor before investing in the stock market or making any investment decisions. This blog/website is solely for informational purposes and is not an offer to buy or sell or solicitation of an offer to buy or sell any security or investment product. This material is not to be construed as providing investment services in any jurisdiction where such offers or solicitation would be illegal.
