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NYSE Bullish Percent Status Change to Bull Alert and New CAN SLIM Follow Through Day Triggered

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The major indexes managed to put in a Follow Through Day (FTD) which is defined in the excellent book about the CAN SLIM method called – How to Make Money in Stocks: A Winning System in Good Times and Bad, Fourth Edition by William O'Neil. Which changes the Investors Business Daily (IBD) outlook to Confirmed Uptrend. 

However, Stan Weinstein's Stage Analysis method doesn't use the CAN SLIM system, as labelling a four day bounce in a deep Stage 4 decline in the market as a Confirmed Uptrend is extremely premature – as Stage Analysis is primarily focused on weekly charts to determine the trend. However, that doesn't mean that it might not be the start of a move, as all moves have to start somewhere. But we look for further evidence via the individual stocks Stages. i.e. the percentage in healthy Stages of either Stage 1 or Stage 2, and the Weight of Evidence from the various Market Breadth Indicators that we track, and what the various industry groups are doing in terms of their Stages and position on the Industry Group Bell Curve etc.

So from a Stage Analysis perspective it's just a rally in Stage 4, which could develop into the beginning of a Stage 1 base. Or it could just be another counter trend rally to the mean in Stage 4. Either way, these are not entry points using the Stage Analysis Investor method, which looks for breakouts and pullbacks in early Stage 2 (on a weekly timeframe). And thus attempted entries in this area are more suitable for the short term swing traders, as volatility is high in Stage 4 rallies and so they can often produce strong short term moves, and present opportunities on both the long and short side of the market.

US Stocks Watchlist – 17 May 2022

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TSLA, AVGO, LIN, UAL + 28 more...

Market Breadth: NYSE Bullish Percent Index – Bull Alert Status

The NYSE Bullish Percent today reversed back to a column of Xs from the lower zone and through the key 30% level, and so changes P&F status to Bull Alert, which it hasn't been on since March 2020.

To learn more about the Bullish Percent Index statuses – see the Bullish Percent article.

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Disclaimer: For educational purpose only. Not investment advice. Seek professional advice from a financial advisor before making any investing decisions.