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These articles describe the statistical probabilities of long positions on these equities, based on neural net projections, for the next 5-15 trading days. These are not holy grail methodologies, the road to easy street, or anything else. These projections are the result of screening for technically significant retracement and momentum patterns that have been further screened for value and bullish sector performance. In other words, the projections are for long positions.
For 12/15/2008:
------------------$INDU----------$SPX----------$COMPQ
Monthly Momentum--Negative(OS)---Negative(OS)-Negative(OS)
Weekly Momentum---Positive-------Positive-----Positive
Daily Momentum----Negative-------Negative-----Negative
(OS) means oversold and (OB) means overbought. The value to price estimate (it is not a guarantee, only a cash flow based estimate) can be defined loosely as a multiplier of price. A number higher than one means the stock is undervalued using this model and a number less than one means the stock is overvalued.
Index and ETF I-shares Bullish Reversals (Note: to look up quotes for the Dow Indexes (starting with DJ or DW, add a dollar sign. No dollar sign is required for the ETFs beginning with other letters.) Today’s list includes only those ETFs with a 50-day moving average of daily volume greater than 1,000,000 shares.
DVY
EEM
EWA
EWH
EWS
IBB
ICF
IJH
IJR
IWM
IWN
IWO
IWV
IYR
KRE
MDY
MVV
PBW
RSX
RWR
SMH
UWM
VNQ
XLU
XLV
XME
U.S. equity markets indeed rallied in advance of Fed meetings and the final response of Congress with regard to the automaker bailout proposal. Most of the rallies were shallow and despite the fact that biotech drugs (CELG), building materials (AYI) and retail (COST), most of the patterns that showed up today are D sell patterns. What we are likely seeing now, should the banking crisis begin to settle, is a potential bullish pattern set up once the next correction completes.
What we have to realize now is that as we get closer to year we will find numerous opportunities for swing long pattern entries. We will have to watch the reaction to FOMC decisions and see the outcome in the markets.
----Value/Price est. 7 day ATR %( 7 day ATR)/Close
Note (O): optionable
*Beta greater than 1.5, Volume greater than 1 million shares on a 50-day simple moving average volume basis.
Let’s be patient and wait out the changes that are occurring. There will be opportunities in coal, homebuilders, biotech drugs, restaurants, and various pharma and healthcare stocks. The bullish impulse waves are now in for many stocks, we must now wait for the patterns to complete.
Take care,
DBB
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I believe you are probably the best out of the literal hundreds of traders that I have witnessed.
