Tuesday, July 29, 2008

IBD Does Say It's A Follow-Through - I Still Plan on Treading Carefully

Quick post - IBD did say this was a follow-through day. Volume was higher - not huge but higher than the 50 day moving average. This FTD occurs on the 11th day of this attempted rally for the Nasdaq. The best occur in days 4 through 7, but hopefully this one can work. I am still hesitant to get overly bullish - the roller coaster ride of the past six days will tend to do that to a person.

Here are the best looking stocks I see. To be fair, I do think a lot of these setups look pretty good. I wish the BOP levels were higher on some of these charts, but we can't get everything we want.

UAUA, LCC, HA, MDVN, EURX, CRME, IPCM, VRUS, IDRA, CRDC, CRME, SQNM, BVX, EXAC, MNTA, IDIX, WCBO, PACW, OFG, RBCAA, MFLX, CBAK, IMAX, VISN, QLGC, ABAT, CPWR, ARST, ARBA, TACT, IXYS, ECOL, PURE, OME, IDSA, CALM, SOL, CSIQ, SOLF, CLDN

There are also a few earnings plays I am considering right now. I just have the feeling in the back of my mind that as soon as I give in and go long, the market is going to reverse, start selling off, and I will once again be tallying up some small losses. Because of that, I am still going to tread lightly here. I would like to see some follow-through to the follow-through, if that makes any sense. Best of luck tomorrow.

3 comments:

Gio said...

Follow through on the follow through?! I LiKe ThAt! Just don't wait for the follow through on the follow through on THE follow through. I still think oil owns this tape.

Anonymous said...

The statement made in IBD was a lot more ambiguous than that -- I don't believe this qualifies as a FTD at all.

Mac said...

Gio - I would agree that oil will have a big impact, and if it bounces things will likely get tough again. I am still surprised that it has pretty much just dropped straight down without a bounce.

Anon - IBD has put the market into rally mode and it does qualify for a FTD based on the requirements - a 2% or higher move on heavier volume. We did get that today.

Of course, IBD also qualifies things - just because we followed through doesn't mean you go crazy and just by anything. They also pointed out that a rally on the back of falling oil may be a recipe for disaster. We'll find out I guess.