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 01/14/2009:
-----------------$INDU---------$SPX------------$COMPQ
Monthly Momentum-Negative(OS)---Negative(OS)--Negative(OS)
Weekly Momentum--Positive-------Negative------Negative
Daily Momentum---Negative-------Negative(OS)--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 100,000 shares.
AGG
BND
IBB
SHM
U.S. equity markets meandered but ended up basically mixed as traders and institutions considered a mix of differing economic news regarding earnings. Equity REITs (EQR,HCN, HCP,HR,KRC,LTC,NHP,O, OFC,OHI, WRE) and healthcare (ANGO,CRL, MASI,NUVA, AMSG,PSYS, CVD,ST, BEC,IDXX, LMNX, OMCL,STE, ZOLL), and biotech drugs (GENZ, GILD,ILMN,ISIS, REGN,TECH) also hit the list.
Though GENZ, GILD,BEC, CVD, PSYS, were extremely close, none passed the statistical norms I use to trade with. Patterns on PSYS and GENZ were the closest.
---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.
The major indexes are still in limbo. We will have to continue to watch the strongest sectors (healthcare, REITs and potentially technology), but news flow will create a large amount of volatility. Patience will be required until things shake out with regard to the economy.
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.
