What I would love for IBD.com to do is stress out or show how important it is to look at the overall picture and to see how stocks behave when we get follow through day.Not all stocks break out at the same time and thats also part of my presentation.
Here below I will study Confirmation day,Follow through day and Im also throwing a tough test to follow through day from Oct 2005.
On chart above Follow Through day arrives on day 5
The chart above also is Stage #3 on the chart below
When I start fresh after a long Bear market has ended then I first ask myself :
What stage is Nasdaq in? anything passed 3rd is considered late stage and is more prone to failure.
My Research focus will be on October of 2005 follow through day.
Here (chart above)we see that Nasdaq was on what my eyes consider 4th stage base (May-June 2006) which was loaded with new highs on low volume or new highs then reversed to bottom of its day range on huge volume...those are signs market is ready to turn the other way.My presentation will concentrate right now on Oct 2005 follow through day.
3) Always get used to looking at daily (chart above) and Weekly (chart below)
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IBD100 from 10/17/2005
I still have a copy of IBD paper of this date and pulled about 11 names out of it. Here I will attempt to show how you can use IBD100 to make cash. I used to believe that although they were excellent stocks ,most were already too extended . But as I will demonstrate myself this is certainly not the case.
Here is the list and I will get into major detail on each one of them.
Prices are somtimes rounded to nearest dollar or just selected anything near the price at the time...my point here is to show what happened after FT day occurred.I would like to add follow through day chart on top of each sample just to stress further the importance of follow through day
IBD100
RANK_NAME__PRICE__IBD100 Ratings_BO PRICE___GRP/RANK
#8___GOOG___$296__99 99 93 AAC___$320_TO_$470 Itrnt-Cont #17
#9___HANS__$12.50__95 98 98 CAD___$24_TO_$50___Bev-Sft #129
#19__CIB____$21____99 96 96 AAD____$22__TO_$36__Banks-Fgn #24
#20__CBG___$48____96 99 94 CAB___$49_TO__$30___Real est #134
#31__HITK___$22___93 98 94 CBC____$22___TO_$32__Med-Gnrc #117
#34__CHS____$37___97 97 92 BAC_____$40__TO_$48__Ret-cloth #73
#61__CTRN__$24____90 98 89 EAB___$30___TO_$57___Ret-cloth #73
#62__MRVL__$22____98 98 85 AAC___$24__TO_$36___Elct-semi #14
#79__CMED__$20____86 96 90 A_B___$22__TO_$42___Med-sys/eqp #45
#85__GOL___$17____96 96 90 BAC______$17.5__TO_$40___Transp-air #92
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