Down Days In Bull Markets: Stocks To Buy Now

Discussion in 'Stocks' started by marketsurfer, Aug 10, 2009.


    There is no question that stocks are currently in a raging bull market.

    Improving underlying economic conditions and, dare I say it, governmental stimulus have driven the major indexes all above their 200-day simple moving averages in a strong upward surge. Many individual stocks are also trading above their 200-day simple moving average. The question is when is it the most opportune time to buy these uptrending companies?

    Our research since 1995 has clearly indicated that stocks experiencing 5 or more straight days of declines, yet are still trading above their 200-day simple moving averagse are the ones most statistically likely to outperform their brethren over the short term of
  2. Skyworks Solutions SWKS: 8 Short Term Power Rating, RSI(2) .94

    Advanced Energy AEIS: 8 Short Term Power Rating, RSI (2) 1.17

    Atmi ATMI: 9 Short Term Power Rating, RSI(2) .16
  3. Dionex DNEX: 8 Short Term Power Rating, RSI(2) 1.10

    L-1 Identity ID: 8 Short Term Power Rating, RSI (2) 1.12

    Novellus Systems NVLS: 8 Short Term Power Rating, RSI(2) .99
  4. DRN - 3x real estate

  5. interesting, thanks. it doesn't fit my criteria for a stock pick, i look for stocks above the 200 day MA but with 5 plus days in a row of a pull back minimum prior to buying-------- but who knows...

    good luck!

  6. The respected head of Templeton Asset Management, Mark Mobius, made the dire prediction of an imminent 30% decline in global stocks today. This highly negative sentiment combined with the VIX future spread signaling a sharp increase by the historically bearish September/October time frame sent shares lower on the session. The DJIA ended down 32.12 after trading lower on the day, the Nasdaq fell 8.01 and the broad based S&P 500 gave back 3.38.

    Related Quotes
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    AMAT 13.53 +0.01

    BOBE 28.27 0.00

    CRTX 9.79 +0.81

    FOSL 27.72 +0.58
    RICK 8.16 +0.15

    {"s" : "amat,bobe,crtx,fosl,rick,sap,tibx","k" : "c10,l10,p20,t10","o" : "","j" : ""} Here are 7 stocks you need to know for Tuesday.

    Tibco Software (NasdaqGS:TIBX - News) is rumored to be acquired by SAP AG (NYSE:SAP - News). TIBX and SAP both have Short Term PowerRatings of 7.
  7. Nattdog


    "experiencing 5 or more straight days of declines"

    the "or more" of this strategy concerns me

  8. yeah, for sure. this is why its combined with the RSI (2 period) to further drill into the choosing. the lower the RSI the better the performance over 1, 2 days and 1 week.

    good luck, surf

    there is link within this article that explains the RSI(2) indicator.
  9. So, you're now a TREND FOLLOWER?


  10. :D :D

    well, this idea atleast tested out very positively---buying pullbacks above the 200 day MA with the RSI(2) has proven to provide a short term edge. For instance from 1995 to 2007 after the S&P 500 has dropped 3 days in a row, it has risen more than 4 times its average weekly gain over the next five trading days.

    that is just one example--i can't argue with the extensive testing used to reach the conclusion.

    #10     Aug 11, 2009