IBD MEETUP/NORTHRIDGE. LET’S MEETUP AND DISCUSS STRATEGY FOR Q2-2014 AND REVISE OUR WATCHLIST. 05/17/2014. REVISED WATCH LIST. DISCLAIMER. During the course of this meeting we will review stocks that should be considered as additions to your watch list.
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LET’S MEETUP AND DISCUSS STRATEGY FOR Q2-2014
AND REVISE OUR WATCHLIST
High or rising volatility [FEAR]often corresponds to declining markets; low or falling volatility is associated with good markets. The current period of low volatility is a reflection of a good market, but not a predictor of good markets in the future.
A Secular Market lasts 5 to 25 years.
Many believe we are still in the Bear Market of 2002
I believe we are in the midst of a secular bull market.
Stocks have risen in price more than they have fallen in price.
Since 1802 there have been 7 recognized Secular Bull Markets.
The average length of these have been more than 14 years.
Historical Secular Bull Markets
Source: Gold-Eagle.com, “Secular Market Trends” article, April 29, 2014
Momentum indicators employ various formulas to measure price changes. RSI (a momentum indicator) compares the average price change of the advancing periods with the average change of the declining periods
RSI advanced from October to the end of November.
During this period, the stock advanced from the upper 60s to the low 80s.
When the stock traded sideways in the first half of December, RSI dropped rather sharply (blue lines).
The green lines on the chart mark a period of sideways trading in the stock and in RSI.
AS OF 5/16/14