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Jack-In-The-Boxes

These are stocks whose ADX Line has fallen below both the +DI and -DI Lines and has stayed there for at least 3 weeks (see Directional Movement and ADX Values sections for details). When a stock has these indicators in place, it is theoretically consolidating quietly, preparing for a big move. This is because the +DI and -DI Lines are battling it out for superiority, and one of these momentum lines is going to win out eventually, and it is often in an explosive manner.

Stocks in this screen are sorted in descending order by the number of weeks that the ADX Line has been below the +DI and -DI Lines, so the stocks at the top of the table have been consolidating the longest.

Stocks in the Jack-In-The-Box screen must satisfy the following requirements:
  • ADX Line is below both +DI and -DI line for at least 3 weeks
  • MACD is above the zero line or is ascending from a low below the zero line
See Jack-In-The-Box table from several weeks ago.

SRDX was a 9-week Jack-In-The-Box on Apr04,2001 in a 14-week-long Cup-With-Handle formation, and then it popped out and surged 50% in less than a month, as you can see in the illustration below.

 
BEFORE
(As Of Apr04,2001)
ADX Line was below +DI and -DI
for 9 weeks
 
 
AFTER
(As of May02,2001)
It came to life and
jumped over 50% in less than a month
 
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