Both Fifth Third Bancorp FITB and Chemtura CEMJQ have initiated buy signals as of the early morning today and based on my previous post. Both stocks were trading in congestion ranges similar to what was occurring in the SP500 and other broad market indices.
Today they have spoken and are now part of the BestOnlineTrades Recommended List.
FITB had a really clean and clear looking uptrend since the advance began in early March. Up until now it has been stuck in a long somewhat sideways trading range and consolidation. But what was clear was that it was not intending to give back that much ground. So today we see a breakout from the resistance line.
CEMJQ has basically the same story as FITB. I think FITB had a cleaner looking uptrend but the structure of both was more or less similar.
So for now I believe the trend is your friend with these too.
I think it is always interesting to do a side by side analysis of the broad market indices and then try to see part of the broad market action in the individual stocks. I have always found that this helped me to gauge trends either up or down. The broad market indices are indeed the ‘mother ships’ and the vast majority of stocks tend to follow them. Of course there are plenty of exceptions at all times, but for the most part this is what I find to be true.
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