- The market has been rallying since October 12
- Leadership is strengthening, a healthy sign for the market
- SPDR Gold Trust Shares (GLD) is the pick of the month
Figure 1. Finviz Leadership Heat Map
Figure 2 Nasdaq Channel breakout in October 12
After a couple months of wild choppiness, the market decided to break out of it’s channel (Figure 2) in early October. This started a rally which is continuing to show strength. While still a difficult market to buy stocks, leadership, the “fuel” for a continuing uptrend, is starting to emerge. As seen in Figure 1, the Finviz Leadership heat map now has 21 stocks this month, doubling September; a difficult month. In addition, the high number of light green ticker labels points strong price performance, or high octane fuel for a rally. November and December are usually good months for investing as institutions “window dress” their portfolios with the year’s biggest winners.
Figure 2 Pocket Pivots buys signals for SPDR Gold Trust Shares (GLD)
The November pick of the month is SPDR Gold Trust Shares (GLD) or DB Gold Double Long (DGP) depending on your risk tolerance. Pocket Pivot buy signals have work well in 2011, and the latest one triggered on 10/26. Look for GLD to possibly continue building the right side of its cup formation and possibly back to the $180-$185 level. Also consider iShares Silver Trust (SLV) and ProShares Ultra Silver (AGQ) as both also trigger pocket pivot buy signals.
Let the markets be your guide. Happy Investing!
Leadership Stocks 