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 02/02/2009:
------------------$INDU---------$SPX-----------$COMPQ
Monthly Momentum--Negative(OS)--Negative(OS)---Negative(OS)
Weekly Momentum---Negative------Negative-------Negative
Daily Momentum----Negative(OS)--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 10,000,000 shares.
BIL
DOG
DXD
EEV
EFU
MZZ
PSQ
QID
RWM
SCC
SDS
SH
SKF
SRS
TWM
U.S. equity markets continued their decline as GDP data was as bad as expected and composite earnings for the S&P 500 were projected to be 35% lower on Q4 year over year comparisons. Drugs (OPTR), healthcare instrumentation (IDXX), business services (CRN) and ultra-short ETFs (BGZ, DOG, DXD, EEV, EFU, FAZ, PSQ, RWM, SCC, SH, SKF, SRS, TZA, SDS). The problem in this particular case was that the pattern for IDXX was not symmetrical enough to for the nets to accept.
Nothing passed the final screens.
----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.
That’s it for now. Unless something dramatic occurs, I think the equity markets could be ready to make new lows, and for that reason we simply need to be patient to see new set-ups as they occur. There may be further pressure on certain financials and leaders in other sectors like biotech. More set-ups will occur as time passes.
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.
