Follow   Thru   Day

IBD declared a  "Follow Thru Day"  at the close of market on Thursday March 11th.  This clears the way for retail investors to start dipping their toes back in the market. 

Do You Have A Ready List Of Stocks To Initiate A Position?

Follow-Through Day Concept

System developed by William J. O'Neil to identify an important change in general market direction from a definite downtrend to a new uptrend.

A follow-through day occurs during a market correction when a major index closes significantly higher than the previous day, and in greater volume. It happens Day 4 or later of an attempted rally. Leading up to a follow-through day, an attempted rally takes place during a downtrend when a major index closes with a gain. The rally attempt continues intact as long as the index doesn't make a new low.

Follow-through day variables include: an index closing sufficiently above 1% on increased volume, positive behavior of leading stocks, and improved market action regarding support vs. resistance levels. The most powerful follow-through days often happen Day 4 through Day 7 of an attempted rally.

In the wake of a follow-through day, the market should continue to add gains in strong volume, with breakouts by top stocks. This is further confirmation a new uptrend is underway.

Above is an article found in IBD (Investors Business Daily) website:

Investors.com

In my blog post on Sunday March 7th, I had mentioned :

 "Quite often the market could rally strongly and we  could face a confirmed uptrend within 3 days sometimes"  

That is exactly what happened this time around.  Last 3 weeks were critical for retail traders.  Starting Feb 25th, we should have started scaling down our positions and raise  CASH.  It was also the time not to watch the broadcast media and get you all riled up.  Time would have been better spent instead looking over as many stock charts as possible to look for hidden opportunities.

This week was a critical week for Growth Stock investors and traders to stay very engaged with the market.  I listed over 50 stocks in the post this week that I was holding a watch over very closely.  There were 9 stocks that were clearly showing signs of accumulation by the institutions on Tuesday March 9th, the 2nd day of attempted rally.  They had increased in price by double digits.  Institutions were waiting for the market to open to grab every share they could lay their hands on.  These 9 stocks continued to make additional gains on Wednesday and Thursday.  

Here are the results of the performance of these 9 Growth Stocks on Tuesday March 9th (2nd day of attempted rally) with the gains in parenthesis indicating further gains on Thursday March 11th.

Stocks:

1. $ARKK ... +10.66% (+6.12%)
2. $APPS ... +15.36% (+14.62%) mentioned blog post 11/4/20
3. $DQ     ... +22.45%(+8.42%)
4. $ENPH ... +12.63% (+8.42%)
5. $FUTU  ... +24.16% (+9.81%)
6. $GME  ... +26.50% (-1.91%) should have sold into strength for more than 50% profit in 1 day
7. $NIO   ... +17.36% (+10.40%) mentioned blog post 11/4/20
8. $PLL   ... +21.87% (+8.11)
9. $QFIN  ... +20.27% (+16.88%)

Stock market correction is something all Growth Stock investors and traders ought to embrace.  It helps clear out the weak holders who don't quite know how to decipher institutional behaviour.  Once you learn and acquire the necessary skills of learning growth stock behaviour, you will learn to hold your emotions in check and let the data drive your decisions.

Good luck trading and acting on an opportunity that has presented itself to us.

Happy Trading!

Amin