20-20 MA Vision
The strongest stocks should not go below the 20-day moving average after the
20-day gets above the 50-day moving average. If they do, they should not remain below the 20-day
MA for long, or it may be an indication the trend may be coming to an end.
Transkaryotic Therapies
(
TKTX |
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PowerRating), Veeco Instruments
(
VECO |
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and Zoran
(
ZRAN |
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PowerRating) were all profiled this morning in
TradersWire. Many times, bounces will
take place out of pullbacks to this indicator, so keep your eyes open. Some of
you familiar with Street Smarts by Larry Connors and Linda Raschke may
see the similarity to the “Holy Grail” strategy which used the 20-day
exponential moving average. This is similar in spirit. Whichever one you
choose to add to a chart, the idea is to be alerted to where a stock could
possibly change direction, then monitor the stock in the event a move becomes
tradable.
Until tomorrow,
Duke