Archive for September 10th, 2009

  • The Golden Arches are not so Golden

    Take a look at McDonalds (stock symbol MCD). While the Nasadaq and Dow and SP500 have enjoyed a nice rally the past few weeks, old Mac is struggling to hold the lows for the past 3 months. This is a sign of poor relative strength as compared to the “Big Engine” SP500.

    Watch this stock over the next few days and weeks. If an individual stock cannot rally while the entire stock market is in a strong rally, what do you think the stock will do, if the whole market begins to fall? Watch MCD over the next few days and weeks. You will learn how to avoid the “dogs” and focus on stocks that show positive relative strength to the marketplace. Once you know how to compare your stock versus the market as a whole, you will find that you say the following much less often. “Why do the stocks I pick never seem to go up after I buy them”? Could it be you are not paying attention to individual stock relative strength?

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    2009.09.10 / no responses / Category: The Stock Market