Trend: Stocks that remain strong during a correction are likely to be the next market leaders.
Dr. Eric Wish at the Wishing Wealth blog describes how he identifies the next group of market leaders.
Link: Wishing Wealth: GMI:1;GMI-R:1; QQQQ bounce off support?; Too many bears?; New leaders?.
I love market declines because it is much easier to identify the next leaders. Stocks that can remain close to their yearly highs or even break into new high territory in the recent market environment may be among the new leaders when the market turns. So, I used TC2007 to scan the market for new highs on Friday and looked at the fundamental and technical data to select some possible winners for my watchlist. These stocks hit new highs on Friday and had recent quarterly earnings increases of 100% or more: BITI and ATRO. These stocks hit new highs and had recent quarterly revenue increases of 25% or more: CSIQ, FCN, ATRO, EHTH, VMSI and ACO. If we get a year end rally, these technically strong stocks with strong fundamentals may be where I look to place my bets.
Comments