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.
$INDU $SPX $COMPQ $RUT
Monthly Momentum Pos Pos Pos Pos
Weekly Momentum Pos (OB) Pos (OB) Pos (OB) Pos (OB)
Daily Momentum Neg (OB) Neg Pos (OB) 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:
|First/Tr Tech||QTEC||O||ETFs (Sector\Technology)||ETFs|
|NASDAQ 100TRST||QQQQ||xO||ETFs (US\LargeCap)||ETFs|
|iShr NasBioTch||IBB||xA||ETFs (Sector\Biotech)||ETFs|
|Hldrs Retail||RTH||xA||ETFs (Specialty\Theme)||ETFs|
|iShr LehShrtTrs||SHV||N||ETFs (FixedInc\Treasury)||ETFs|
|Direxion FnlBr||FAZ||xN||ETFs (Short)||ETFs|
|Direxion RelEst||DRV||xN||ETFs (Short)||ETFs|
|Direxion SmCpBr||TZA||xN||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):
Stocks that almost passed the neural net screens but just missed: None
Note: If you own GOOG, QQQs, or tech, you are happy, if not, you are extended with gains from September. I am patient as the $INDU seems ready to back up, but not willing to chase. I trade patterns, and that is the bottom line. If I do not see them in the context of the criteria, I do not trade them. Lets remain patient as volume seems to be picking up, markets do not go up in one direction forever.
More will come as the week progresses.