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 02/03/2009:
-------------------$INDU---------$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 100,000 shares.
BBH
IBB
IEF
TLT
XBI
U.S. equity markets roiled and ended lower (except for the $COMPQ) mainly because ISM numbers seemed to indicate that manufacturing contraction was not as severe as previously feared. Either way, institutional traders basically remained tentative in terms of taking new positions. The major bullish reversals were in healthcare related issues (AMMD, BIO, AMSG, KCI, HS, and MGLN) and petroleum (ME, BRS, LAYN). Meat products (HOGS) and drugs (AMLN, CRXL) also appeared.
AMSG was close, but the nets did not like the set up enough.
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. We need to remain focused on healthcare issues and perhaps even some natural gas issues going forward. Markets are once again retesting lows. At the end of those tests, we are likely to see another decent round of multi-day swing trades.
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.
