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 01/28/2009:
-------------------$INDU---------$SPX----------$COMPQ
Monthly Momentum--Negative(OS)--Negative(OS)---Negative(OS)
Weekly Momentum---Negative------Negative-------Negative
Daily Momentum----Positive(OS)--Positive(OS)---Positive
(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 10,000,000 shares.
AGG
BIV
BLV
BND
BSV
BWV
CFT
CMF
EDV
GBF
GKD
IEF
IEI
IHI
IPE
ITE
LAG
LQD
MLN
MUB
PBE
PIC
PLW
PVI
PZA
SHY
SMB
TLH
TLO
TLT
U.S. equity markets rallied on better than expected earnings results, particularly from U.S. Steel (X). Volume, however, was light. The bullish reversals were relatively few, with food (CALM), insurance (VR, WRB), and business services (WW) hitting the list. One bank (ZION) also made the list.
While CALM and WRB were close, only VR made it past the neural net screens in the end.
----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.
--VR 1.85/1 57.1%--1.41--1.26-------5.42
Insurers are a small area of strength to add to biotech and certain consumer names.
Let us continue to be patient when purchasing these names for swing trades. We are still in a complex bottoming process. The process will take time.
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.
