Wednesday, February 9, 2011

Using this pullback to identify candidates for entry

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5 days until our meeting!  If you have not confirmed in one of the two Yahoo! groups by answering the poll, please do so.

There is a combined GGT and GGT, LLC meeting this coming Saturday, February 12th, at 10:00 a.m. to 1:00 p.m. at the Burke Centre Library, 5935 Freds Oak Road, Burke, VA 22015. Please RSVP in one of the GGT Yahoo! forums so that I can print an appropriate number of handouts. I anticipate that there will be a Web-Ex that remote folks can call into and listen to the dialog as well as view the slides in real-time.


I am in Ft. Worth through Thursday and blogging will be on an as-available basis.
 
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Summary
  • As anticipated, futures are pulling back, but the pullback appears to be tame.  I plan to use this time to enter stocks that are in an uptrend but have pulled back to your my buy zone.
  • Our new indicator, the GGT Price Accumulator Change Oscillator, dropped to a value of -4, which is just above my buy zone of -5.  I would anticipate that if the markets drop today that we'll have a short-term entry signal if they pullback then move higher.
  • The Long-Cash Ratio (LCR) continues to strengthen, and is firing bullish on all time frames through the 65d/13w except the 5d.  We are seeing a slight pullback on the 5d time frame, which I consider healthy.  Put another way, in context that you are used to, the slopes of the LCR EMAs are all bullish now, which means that the database is expanding on all time frames day-over-day.
  • The strongest GGT industry group, as far as ETFs are concerned, are in the MidCaps (CVY, IJJ, IJK, IWP, IWR, IWS, PDP, VOE, VOT).  This is not a recommendation, simply an observation, as these all reaffirmed their long recommendation.
  • The strongest GGT stock industry groups are Machine-Constr/Mining (5 stocks), Comp-Networks (14 stocks), Comp-Computer Mfg (6 stocks) and Steel-Specialty (6 stocks).  Send me a note if you want the stocks in these groups, else download the weekend ZIP file in the Yahoo! group and go to the "By Industry" tab to see the stocks in that classification.
  • While LargeCaps certainly are being favored, their allure is being challenged with a general migration to Midcaps and in some instances, microcaps.  Keep this in mind as you make your choices.
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Remember, you are responsible for your own trading decisions, and I am not.  Please do your diligence and take responsibility for your actions.

Regards,

pgd

Position Disclaimer.  As of this writing I own/influence positions in the following equities:  AAPL, ACH, BGU, BTI, COST, DIG, ERX, FAS, FXI, HPQ, HSFT, HSY, IEO, IYE, JJC, LULU, MVV, PALL, RIMM, SI, SOXL, SSO, UCO, UPRO, UYG, UYM, VDE, VIT, WPI, WYNN, XLE, XME