Darvas Stocks Leading the Way

by Darrin Donnelly on September 20, 2010

I’ll keep this report brief as Monday’s powerful market move speaks for itself, but there are a few points Nicolas Darvas System traders need to be aware of right now.

All three major indexes were up big on Monday (1.74% for the NASDAQ, 1.52% for the S&P 500, and 1.37% for the Dow), but volume was lower across the board compared to Friday’s session. 

At first glance, this is a concern.  After all, volume powers the big trends and we want to see increased volume pushing this rally higher.

But, if you look a little closer, you’ll get the whole picture.

The Friday session’s volume was much higher than normal due to the expiration of options and futures, which automatically inflates volume. 

Plus, even though volume on Monday was lower than the Friday session, the NASDAQ still saw volume surge above its 50-day average level.

I also think sometimes it’s easy to get so caught up in the major indexes that we forget about what the actual leading Darvas stocks are doing.

On Monday, we saw big moves for a number of fast-moving Darvas stocks.

AAPL jumped 2.85% to hit a new all-time high on increased above-average volume.

BIDU broke out to a new all-time high with a 4.83% move on increased above-average volume.

FFIV also hit a new all-time high, up 3.6% on increased above-average volume.

PCLN jumped to a new all-time high with a 3.74% surge on increased above-average volume.

GMCR, though it finished mid-range for the session, still managed to notch a 1.5% gain and hit a new all-time high on increased above-average volume.

Notice the theme here?

While the indexes may not have overwhelmed us with gigantic volume Monday, all of the above Darvas stocks – those stocks that are true market leaders – hit new all-time highs on (I’ll repeat it one last time) INCREASED ABOVE-AVERAGE VOLUME.

The bottom line is this: if you’ve been buying the Darvas stocks we’ve been showcasing here, you don’t need to look any further than your portfolio’s performance Monday to confirm that this rally is for real.

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1 QUICK QUESTION:

I’m thrilled to report that we’ll be launching Darvas Trader PRO later this month!

This PRO version of Darvas Trader will include every single Darvas stock on our watchlist, every single buy point, every single sell point, market trend updates, ETF trades, advance Darvas system techniques, and instant stock trade alerts.

In order to make sure Darvas Trader PRO is delivered just the way you want it, I’d greatly appreciate it if you could take a second and answer one short question on the format you’d prefer.  The link to this one-question survey is here.

Thank you so much for taking the time to answer this question and helping me create the best product I possibly can for Darvas traders!

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Learn to recognize Darvas Stocks quickly by implementing the Darvas Trading System.  Try it out risk-free for 90 days here.

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