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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 12/16/2008:
-------------------$INDU---------$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.
BLV
CFT
CXA
DUG
EEV
EMB
EUM
EWV
GKD
GVI
MUB
MYY
MZZ
RMS
RRZ
RSW
RWM
SDD
SDP
SJH
SKK
SRS
SSG
TLH
TLT
TWM
U.S. equity markets simply drifted, perhaps as a result of pre-holiday trade and perhaps in anticipation of the assumed 50-basis point cut in Fed Funds rate to be announced at the end of the FOMC meetings this afternoon.
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. Certain pharma stocks (ABT). Broadcast media (CETV), shipping (DSX), restaurants (JBX), and consumer goods (KOF) provided bullish reversals but not with the kinds of statistics the nets preferred.
----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.
Nothing today.
Let’s see how the Fed rate cut shakes out and how stocks react to it. There is likely going to be erratic trading volume over the next couple of weeks as the holidays ensue. We need to keep the powder dry to assure that we have more to trade with when the better set ups arrive.
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.
