It seems that people are more interested in the popular bullish stocks rather than looking for any opportunities in the weak bearish stocks. Due to the strong US economy and dollar , the stock market became unstable. And it seems that people tend to make safer bets on the ones with continued bullish strength instead of placing bets on bearish stocks even they show the positive technical signs.
To find the bullish stocks, I recommend to use RS indicator. There is the Relative Strength (RS) technical indicator in my site. It’s located in the last column of the main RSI table. It’s basically about the strength of the stocks compared to S&P 500 for 52 week period. So higher number of RS means that the stock is stronger and more positive compared to S&P 500. If the RS is negative, the stock is performing worse than S&P 500. Naturally, if the RS has been increasing or staying high over long period, you would know that the stock has been doing well over time .
These four stocks are the top 4 entries in terms of RS indicator. Skyworks Solutions Inc (SWKS) , Jet Blue (JBLU), Incyte Corporation (INCY), and Avago Technologies (AVGO). I think if you should monitor these closely. They are all good quality with continued bullish trends for long time. It could be a good idea to initiate position when the daily RSI 7 is under 30 and bounce back over 30 for these stocks. For example, SWKS briefly touched 30 level on 4/30 but bounce back right away and up 19% as of 5/30. . And JBLU has touched below 30 and trying to move up according to the graph. This could be a good chance to start a position. But please check out about the company and analyst’s opinions before making any decisions. Also I recommend you to avoid initiating the position near the earnings reports date, because it could be highly volatile sometimes. You can check the earning report schedule on Google Finance website.
So have fun researching and let me know if you have any questions. Thank you for visiting my site!
Disclosure: I do not have any position on the stocks mentioned in this article. However, I do plan to initiate position on JBLU next week.