Resilient market | stockbee

10/19/2007

Resilient market

Yesterday again demonstrated the market's resilience. Negative open in the morning did not deter the market from ending in green. Few days of corrections is setting up number of stocks for further up move.

If you look at the IBD 200, which represents stocks with earnings as well as price momentum, you will see number of stocks with good bases:

IBD 200 Basing Stocks

Stocks from IBD 200 which have less than 10% growth on month time frame and are currently forming a base.

AMOV AMX AMZN ANGO ARD ATNI ATW BLUD BPHX CADA CEDC CELG CHTT CIR CMED CRNT EBAY EBIX FCN FCX FLS GPRO GRMN GRP HAL HEI HPQ HURC ILMN IRIS IVGN JNPR KCI LAYN MEAS MT NBG NGS NHWK OMCL
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ORCL OTEX OXPS PCLN PCP RATE RIG SCRX SII SNCR SNDA STRA TNH VIVO VMSI WFT WGOV

8 comments:

Carter said...

Pradeep,

Why wouldn't MR or NILE be included on the above list? Thanks!

Pankaj said...

Pradeep,

Whats you take on today's action? Anything that you see what normal folks like myself do not? If possible, please share your thoughts!

Cheers,
Pankaj

Pradeep Bonde said...

Day like today is what one would expect when the Stocks up 50% plus in a month readings on Market Monitor are above 20. Which has been the case for over 10 days now and on Members Only site I have talked about being cautious since the readings hit record levels.
Normally such high readings correct quickly with 1 to 3 down days. So we are getting it now.

Pradeep Bonde said...

Carter
The list does not contain all stocks. NILE had two negative days on high volume. MR had one.

Pankaj said...

This looks like more than a short correction on the way up in a typical bull run!! Is this the beginnning of a longer term bear market? .. Every time we get more than 300 point drop in one-day, it shakes the bull out of my body!! Thoughts? The best thing for a bull like me to do is to turn off my TV tonight!! :)..

Barry said...

Once again the Market Monitor proved invaluable tool. Your analysis on Market Monitor and warning has proven correct. It saved me a bundle.
Thanks for thinking up such a valuable tool. It is the first thing I check in the morning.

John said...

Pradeep,
Is today a big warning sign of much worse to come? or something you fully expected that should not last too long?

Wondering if I should sell all my stocks now (mind you in the August correction I sold all my stocks only to find that they went much higher once the correction was over).

Thanks,
John

Pradeep Bonde said...

A correction was coming was fully expected as the Market Monitor short term indicators were in red and readings on them were in extreme territory.
Market Monitor does not tell you how to trade, so what you should do with your shares depends on what is your trading strategy.
Market Monitor works in conjunction with trading systems like Double Trouble, EP, Virgin, IBD 200. It identifies safe and risky period to trade.