A breadth thrust of 2 plus will indicate start of new up leg | stockbee

3/13/2012

A breadth thrust of 2 plus will indicate start of new up leg



I see no evidence to change the hypothesis that this is a bull move with probability of more upside. I expect higher prices in the months to come if the  market continues to hold well.

The stocks that had first leg of up move are likely to setup and make second and third leg of up move. The Stocks showing up in Darvas scan are the stocks to focus on for growth investors. See my recent post on Darvas method. You can setup Darvas scan in Telechart or any other scanning software very easily. The market correction or individual stock correction gives you enough time to research these stocks.

While many growth stocks broke out in January, more new growth stocks will break out and join the party. New IPO's and new sectors will breakout in next couple of months.

Short-term picture is however not so rosy. Lack of follow through on breakouts near high or 52 week high indicates that the next few weeks will be more challenging than the past few. Expect market to go sideways or pullback for some weeks. A breadth thrust of 2 plus will indicate start of new up leg.

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