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Short Form Buffalo Trader Bullish Reversal Report 10/15/2010

For the time being, this will be the new format, showing only the basic U.S. stock index momentum, the bullish reversals in ETFs and bullish reversals in stocks. I will periodically comment on major issues at critical times, but during the time I am attempting to build the algorithm required to download signals from almost 1300 stocks that I have built models for using NeuroShell Day Trader Professional, this is what I will leave you with. Most who have commented (and I have received, thankfully lots of comments with great appreciation to readers) want to see the reversals and not necessarily trade signals I generate. That makes life simpler for me, though at some point I will discuss methodology for building your own models. For now, I will present the data with little commentary. I will always respond to readers’ comments. This blog will steadily evolve as the time I have and the technology I use evolves. Thanks for your patience during this transition.

For 10/15/2010:

                                             $INDU      $SPX         $COMPQ     $RUT

Monthly Momentum   Pos            Pos              Pos              Pos

Weekly Momentum     Pos (OB)   Pos (OB)   Pos (OB)     Pos (OB)

Daily Momentum        Pos  (OB)   Neg          Pos              Pos

N means neutral, Neg means negative, Pos means 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 100,000 shares:

Company Symbol Exch. Industry Sector
PwrShrsDBAgriDb DAG N ETFs (Commdty)\TotRtn) ETFs
ETFS Palladium PALL N ETFs (Commdty)\TotRtn) ETFs
Rogers IntlAgri RJA xA ETFs (Commdty)\TotRtn) ETFs
iShr MSFra EWQ A ETFs (Foreign\Country) ETFs
iShr MSEMU EZU xA ETFs (Foreign\Regional) ETFs
iShr MSSK EWY xA ETFs (Foreign\Country) ETFs
PwrShsAgricult DBA xA ETFs (Commdty)\Futures) ETFs
Euro Currency FXE xN ETFs (Currency\Country) ETFs
iShrTIPS Bd Fd TIP xN ETFs (FixedInc\Other) ETFs
PwrShrs $ Brsh UDN xA ETFs (Currency\Other) ETFs
WisdomtreeEmgLD ELD N ETFs (FixedInc\Other) ETFs
Spdr Leh1-3Mnt BIL A ETFs (FixedInc\Treasury) ETFs
ProShrsShort500 SH xA ETFs (Short) ETFs
iPath SP5VIXMd VXZ xN ETFs (FixedInc\Other) ETFs
ProshrsUlSht500 SDS xA ETFs (Short) ETFs
ProShrsUlShtQQQ QID xN ETFs (Short) ETFs
Direxion LgCpBr BGZ xN ETFs (Short) ETFs
ProShrsUlShBcMt SMN xA ETFs (Short) ETFs
ProShrsUlShS500 SPXU xN ETFs (Short) ETFs
Direxion MCBr3x MWN xN ETFs (Short) ETFs
iPath SP5VIXSht VXX xN ETFs (FixedInc\Other) ETFs
Direxion SemBr3 SOXS N ETFs (Short) ETFs
ProShrsUlShtQQQ SQQQ xO ETFs (Short) ETFs


The stocks listed below are ranked by pattern bullish reversals based on a momentum indicator. Each stock by sector is listed with the cheapest stocks on a near-free-cash-flow value/price basis at the top, and more expensive stocks on that basis farther down each sector list (they are listed alphabetically):

Company Symbol Exch. Industry Sector
Partner Comm PTNR O Telecomm (Cellular) Telecomm
World Accept WRLD xO Financial (Consumer Loans) Financial

Stocks that almost passed the neural net screens but just missed: None

Note:  U.S. equity markets either were flat or slightly down on lower volume on Thursday. Though jobless claims were worse than expected and all the news with regard to sovereign debt and currency issues abound, I think the markets are still in a process of digesting and perhaps consolidating gains as earnings results come in. There is nothing particularly dramatic in a slow day after a pretty solid month and a half of trading. Again, as long as stronger volume returns, any correction should provide us with ample trading opportunities. They will eventually arrive. Until then, keep the capital ready.

Take care,


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