Weak markets are the best time to pay attention to what's actually holding. When stocks hold in weak markets it usually means institutions are supporting price - they're accumulating the stock vs dumping others.
The simplest way to identify this behavior is to compare the divergence in new lows against a benchmark that's relevant for the stock. In this case, I am comparing GTLB to the Nasdaq. Notice how new lows in the Nasdaq are not replicated in GTLB - this is a sign of developing relative strength.
This does not mean this behavior will continue - it needs to be monitored on a continuous basis so that the pattern of strength is maintained in the stock you're watching.
If you're watching a stock that's making new lows while the index is making new highs, odds are when the index rolls over, the stock you're watching does worse. On the flipside, when the index bottoms and regains strength, the stock that showed prior strength should, in theory, outperform as it has throughout the period of weakness in the markets.
The biggest winners of our time always shine in bad periods by simply not falling more than others, and making higher lows when others make new lows - these are the clues you need to watch for.
I want to see GTLB develop more and consolidate on the daily time frame to further prove to me it's in a stage 1 base. So far it's one of the few out there among relatively new IPOs that are showing positive signals. There is still a lot to go and we are in a very dangerous market, so extra patience is needed for price to prove itself.
The simplest way to identify this behavior is to compare the divergence in new lows against a benchmark that's relevant for the stock. In this case, I am comparing GTLB to the Nasdaq. Notice how new lows in the Nasdaq are not replicated in GTLB - this is a sign of developing relative strength.
This does not mean this behavior will continue - it needs to be monitored on a continuous basis so that the pattern of strength is maintained in the stock you're watching.
If you're watching a stock that's making new lows while the index is making new highs, odds are when the index rolls over, the stock you're watching does worse. On the flipside, when the index bottoms and regains strength, the stock that showed prior strength should, in theory, outperform as it has throughout the period of weakness in the markets.
The biggest winners of our time always shine in bad periods by simply not falling more than others, and making higher lows when others make new lows - these are the clues you need to watch for.
I want to see GTLB develop more and consolidate on the daily time frame to further prove to me it's in a stage 1 base. So far it's one of the few out there among relatively new IPOs that are showing positive signals. There is still a lot to go and we are in a very dangerous market, so extra patience is needed for price to prove itself.