USING TIGER'S POWER STOCK RANKER
IN A MARKET ALREADY UP 40% OFF ITS LOWS
by William Schmidt,
Ph.D.
The first order of business with the DJI up 45% from
its lows, is to consider how much
upside potential there
still is. The chart below shows we are still on a major Buy from
Peerless and that the NYSE A/D Line has already made a 12 month high. The
P-Indicator
has hardly had its high
levels be reduced from when it was 1000 points lower. The
Tiger Accumulation
Index, like the P-Indicator, is not as high as it was a month ago,
but it is still very
positive. So, no Sell S9 or Sell S12 is insight at this point.
The DJIA has recently exceeded a 33% retracement (from October 2007 high to
March 2009
low) and the resistance of its falling 52 week moving average, by
virtue of
excellent breadth and very high levels of Accumulation. Now it
seems bound
to test the round number 10000 level and then the 50% retracement
level of
10300. The amount of upwards energy in the market must be respected.
My own
sense is that the broken support at 10800 seems the most likely place
for sell
orders to be placed abundantly enough to stop the recovery.
So, how can we play the market, if we assume that there may be
1000 more points
to the upside? First,
understand that our reasearch shows that the highest Accumulation
Explosive Super stocks make their best moves in the second six months after their
initial bulges of Accumulation. Accordingly, I would focus special attention on
these
explosive super stocks, all the while being aware of how far some have already risen
watching for the red flags they are
apt to offer shortly before they decline.
New 8/14/2009 How To Find Each New Bull Market's
Explosive Super Stocks: 1990-2009
and 8/7/2009 Bulls Should Be Able To
Spot The Red Warning Flags in Over-Priced Stocks.
NSR
23.07 .23
1.013 but looking at its chart below, we see that its OBV
and Rel Str.
are rated as
"Bearish".
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