Follow Through Day Today - EDU CRUS SNDK CMG

Today was a “follow through day” on the Nasdaq index. The index was well up with volume higher than yesterday, not great volume but good enough to qualify. Follow through days are expected on the 4th to 12th day from a low and today was the 6th day. You can see on the chart courtesy of www.bigcharts.com how the volume is higher than yesterday with a big point gain. Also the index is making a break through of the resistance level discussed in my last blog. A follow through day indicates an “odds favor” point in time to buy.

Now remember what a follow through day is. It is a simply a point in time that says “odds favor” a rise in the market and “may” be a good time to buy. Follow through days can fail but they usually indicate a gain of unknown price and duration. Not much help you might think but remember ALL bull markets begin with a follow through day but not all follow through days lead to a bull market. As I have said before the stock market is an art not a science. All we can hope to do is find “odds favor” conditions such as now.

Remember start buying small and wait to see if your picks are successful. If they are then add to them and buy more stocks (don’t forget your sell stops). Here are some interesting looking stocks that may be ready to make a move. Don’t forget to make sure that earnings are not imminent.

EDU - $99.23

CRUS - $15.15

SNDK - $48.58

CMG - $152.90