Andy, Happy Thanksgiving to you, and to everyone else reading this thread.
I'm not sure I understand your point. I agree that the odds are improved if you go long on an uptrend. My original question to Richard was once the market as a whole recommences an uptrend, should I be focusing only on those stocks that have a solid uptrend in place, ie., stocks whose prices are above all of their moving averages, or can I be trying to capture potential appreciation of stocks that have corrected and have their price below their averages, and are just starting to uptrend.
His answer was to focus on the strongest relative strength stocks, using IBD or Quotes Plus QRS, of say 80 or better. In reality, most of these stocks will not have corrected as much as the market, and most will have their prices above most of their moving averages. However, there will be some that have in the very short term have corrected to a point below their moving averages. If I understand Richard, these are ok to consider, and ultimately buy if based on my particular technical analysis approach, they pass the test.
Are you saying the same thing? Ignore the tempting stocks that have corrected significantly if their relative strength isn't high enough? Or are you saying that even if a stock has a high IBD relative strength of, say, 85, that you shouldn't buy it if it's price is below its moving averages?
Jan |
