Ian Woodward’s Investing Blog

The sale of existing U.S. homes sank 27.2% in July which was the biggest one-month drop ever…largely because of the phase-out of a federal tax credit, and the market went down again true to form:

The S&P 1500 stocks have dropped again on Monday and today, and we now sit with 91% of the stocks below the Middle Bollinger Band of 0.5 and only 9% above it…oversold.  

We are barely 6 points higher than the low set on 7/2/2010, so it is a no brainer that we will test that tomorrow or if not, soon.  That would give us a double bottom where one might expect a bounce play from an oversold position.  Can we go lower?…Sure we have been as low as 97% of the S&P 1500 stocks below 0.5 as recently as 5/20/2010!

You have seen the spreadsheet below, before, so it is self-explanatory.  Since the Market broke down with a Phoenix Signal on 8/11/2010, we have two more to prove that the Bears are now in complete control, with the most recent one today!   Of course, we should look for a bounce play, but unless there is some startling positive news, the overall direction is overwhelmingly down for now.

To add to the Bulls’ problem, the overall emotion of the Market has turned very negative with all the discussion of Hindenburg Omen’s firing last week.  It is unlikely we will see another one soon unless the Market happens to turn up sharply, as the one item now which is a challenge is that the 10 Week Moving Average of the NYSE has recently turned down. 

Type 1 and 2 Intra-day and Inter-day Traders are enjoying this market…provided they are sharp and turn on a dime.  The rest should be sitting on the fence until there is more than hope to drive this market up. 

Best Regards, Ian.

Seasons Greetings, thanks for your continued support and all Best Wishes for 2009 from the HGSI Team…George, Matt, Ron and Ian.

Enjoy this wonderful video of the Drifters…just click on the link below; then, when the video is finished, hit the return arrow at the top of your browser.

http://www.youtube.com/watch?v=ddVZOK_9UUI

The heading says it all, tomorrow will be decisive as to whether this Market will repair or sink lower this week.  I’m celebrating my Wife’s birthday.

Best Regards, Ian.

 Wishing you all a Happy New Year from the HGS Investor Team…George, Matt, Ron and Ian.

Seasons Greetings, thanks for your continued support and all Best Wishes from the HGSI Team…George, Matt, Ron and Ian. Enjoy this wonderful xmas video

CLICK THE PICTURE BELOW TO LINK TO THE VIDEO

I am often asked “But Ian, how can I find potential candidates in a down market that still may be providing gains on the long side, rather than sitting in my foxhole?” Of course those who just can’t tolerate withdrawal symptoms want to look for the reward and are prepared to take the risk…i.e., roll the dice in the face of a hurricane.  Well, for those who are not feint of heart, here are 15 stocks that have shown the highest count across several HGSI Proprietary Groups. 

Taking a feather out of my associate and good friend Ron Brown’s cap, I felt I might show you the results of the top 15 stocks for the newly developed function in the HGSI Software, called Group Inclusion.  As he showed you in his video today, this new feature shows the stocks with the most hits in selected StockPicker and SmartGroups.  Shown below are the 15 stocks with scores of 6 to 9, and the groups that had 3 or more “hits” for these stocks.  Note…Column C, labeled Count, is the number of groups that had the stock listed, but the total score shown may not equal that shown on any one row, since I had to cut the view off so that it would at least be readable.  For example, SVA is shown with a count of ‘9”, but only 7 are shown on the list; the other two were in the Health Care Sector and Best Stocks under $10.

I have absolutely no idea if there will be opportunities in this Group of stocks, but it gives us a basis to do paper studies at the onset of a bad down-turn to see if there is anything we can glean out of this lot.  I suggest you put these in QuoteTracker or whatever other Real-time on-line software you use and watch how they do tomorrow and through the week.   

One thing which I find gratifying is that those who have been using their favorite Groups to hunt for stocks will find to their relief and satisfaction they are all prominently shown in columns “D” through “I”.  Naturally the HGS 100 should clock up the most hits, but ignoring that one, your best hunting ground for ferreting would appear to be in the favorite groups you already use as shown. 

As far as I am concerned this is a paper study to see if HGSI can find the proper fish swimming upstream against the tide…It is always “Your Call”.  Ron and I will focus on this feature on our newsletter due this week, and maybe we will shed more light on its performance and uses then. 

Please let me know if this blog is of value to you as it took a fair amount of research to make the simple chart above handed to you on a platter.  Or, are you sitting in your foxhole twiddling your thumbs for better times?  Best regards, Ian.

>>>(Ian many thanks for this and for mentioning my blog. As you realise, I am a fan!)<<< 

I tried to respond to you on your website, but it wanted my name and password from what I could gather, so I had to post my message here and hope that you will recognize your mascot from your site and see this response: The feeling is mutual, but I only wish I could read your notes and write in your language as well as you can in mine.  I am glad you and your readers are enjoying my blog.  Once this correction is over, I will be signaling it with an Indicator called “Bingo”, which should be at the lows of the market correction, so keep an eye out for that.  Then hopefully, it will follow up with an “Eureka” signal and that would be the time for the “All Clear”. It may be days or it may be weeks before it comes.  Tonight “Big Foot” should be the headline! 

I’m sure my supporters won’t mind seeing my response to your kind gesture, which has a heads-up to come in the message…we call it a winky-winky.  If you do wish to respond, please leave a comment in the place indicated below.  Alternatively, you can always respond to ian@highgrowthstock.com 

Once again, many thanks, Ian.

The Big Bad Wolf huffed and puffed twice and blew the house of straw and the house of sticks down, but try as he might, so far he has not been able to do any damage to the house of bricks.  After the initial drop to a precipitous low in mid-August the market has righted itself with a respectable Bounce Play, and is now waiting for its second wind to hopefully return to its old high.  We have one more big item of anticipated news next week when the FOMC meets on September 18.   Then either there will be gnashing of teeth or hoorahs depending on whether Ben Bernanke lowers the Fed Funds Rate or not and by how much….25 or 50 basis points?   

I hope all of you are enjoying my Blog, which is a challenge, but I hope it gives you a blow by blow assessment of the market in these tricky times.  I have some good news and some great news.  With the help of a member of our Saturday Monthly Meetings who is a whiz at spreadsheets, we have come up with insight on Tops using the Hindenburg Omen and Eureka, and also Bottoms using Wilder’s RSI and Eureka, all based on the NYSE.  This will be the focus of the new good stuff at the October Seminar.  Like any other indicators, there is no silver bullet, but the combination of the two makes it more convincing when they occur together or in sequence.  This month I will cover the Game Plan Filter used in the Blog which has been fairly successful in showing the leaders are still healthy. 

Ron has applied his attention to the Barron’s 400, a new stock Index of their 400 selections.  We felt you would like this in your bag of tricks.  Ron has done a great job in slicing and dicing the good Fundamental stocks from the bad in terms of their current Technical performance relating to price momentum.  

The next Seminar will be in Palos Verdes Estates (PVE) just 15 miles south of the Los Angeles Airport for 3 days from October 27 to 29, 2007, inclusive.  The price is $1100/person.

Best Regards, Ian 

Many thanks to all my well-wishers for my Birthday.  The Market is Marking Time, so I am going to enjoy today with my family, and I wish Many Happy Un-Birthdays to all of you, and may all your stocks be winners!   

Best regards, Ian.