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Revisiting the PMO Watch List - Looking Good!

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About a week ago I wrote a blog article that looked at momentum changes that I picked up from my favorite PMO scan. The charts were interesting but needed confirmation of the momentum change with a breakouts and/or PMO BUY signals. I checked these charts out again and they have all confirmed the positive momentum changes I saw earlier. I've annotated over the original charts with today's comments in "RED" and original comments at the time of the momentum change in "BLACK".


First was American Express (AXP). I was waiting for a breakout from the declining tops trend line and a positive crossover of the PMO. Both happened. The PMO also pulled back but avoided a negative crossover and continued higher. I wrote about this type of reversal, called a "Bull Kiss" in a previous blog article.

ING Groep NV (IND) was in a consolidation pattern that gave the PMO an opportunity to unwind and move out of overbought territory without the need of a serious pullback. I was waiting for a breakout from that area of consolidation to confirm the PMO BUY signal that already had occurred and we got it.

PIMCO Municipal Income Fund III (PMX) had already broken above the declining trend channel, we were waiting for a PMO BUY signal and we received one.

Price has plenty of room to reach the top of the rising trend channel on RLJ Lodging Trust (RLJ). The PMO had already had a crossover but dipped back down toward its EMA. Before crossing below it, we see a "Bull Kiss" like on the AXP chart.

The reason I compose Watch Lists is I can watch for a confirmation of the momentum change. Granted you won't see all of your Watch List charts make confirmation moves, but that is the point.

Happy Charting,
Erin

Erin Swenlin
About the author: is a co-founder of the DecisionPoint.com website along with her father, Carl Swenlin. She launched the DecisionPoint daily blog in 2009 alongside Carl and now serves as a consulting technical analyst and blog contributor at StockCharts.com. Erin is an active Member of the CMT Association. She holds a Master's degree in Information Resource Management from the Air Force Institute of Technology as well as a Bachelor's degree in Mathematics from the University of Southern California. Learn More
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