In a continuing development, there are now over 5 1/2 times more bullish breakout patterns than bearish breakdown patterns on my PnF database of over 3,200 stocks. Pay scant attention to the Dow. It will distract you from what appears to be happening—-a broad-based rally in stocks, especially small and mid caps. Are we in overbought territory? You betcha. Can the market still go higher? Affirmative.
In last night’s comments, I indicated that, “of the stocks traded on the NYSE, almost 72% of them are now trading above their 50 DMA. In addition, 64% of the stocks in the S&P 500 are on PnF buy signals. That number is 76% for the Nasdaq 100″. After today’s down action in the Dow, those numbers are 75%, 67% and 78%, respectively. It’s gotten even more bullish. See what I mean?
The market has more strength going for it than I expected. How odd, yet profitably pleasing, in a most anticipatory kind of way.
I am bordering mild elation and ideas are bountiful. Let me throw out a diversified list of what are on my screens: CMN, CUB, CVTX, EGO, ESI, FAF, FSP, KGC, MCD, NNI, PCG, RATE, RMBS, STSI, and TOL. Not what I’d expected. All of these have favorable reward to risk ratios of over 3 to 1, and are exhibiting above average potential.
Sorry, I’m not in the mood to give you all the colorful charts like my other compadres might be inclined to do. Use your imagination. I’m sleepy tired (*yawn*).
Groovy…;[youtube:http://www.youtube.com/watch?v=ar-Z_l907DY 450 300] If you enjoy the content at iBankCoin, please follow us on Twitter