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Short Form Buffalo Trader Bullish Reversal Report 10/18/2010

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 10/18/2010:

                                     $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:

Company Symbol Exch. Industry Sector
ProShrsUltraQQQ QLD xA ETFs (Specialty\Dividnd) ETFs
First/Tr Tech QTEC O ETFs (Sector\Technology) ETFs
iShr NasBioTch IBB xA ETFs (Sector\Biotech) ETFs
Hldrs Retail RTH xA ETFs (Specialty\Theme) ETFs
WisdomTreeDrfCh CYB xN ETFs (Currency\Country) ETFs
iShr LehShrtTrs SHV N ETFs (FixedInc\Treasury) ETFs
ProShrsShortDow DOG xN ETFs (Short) ETFs
ProShrsUlShtFnl SKF xA ETFs (Short) ETFs
ProShrsShortRss RWM xN ETFs (Short) ETFs
Direxion FnlBr FAZ xN ETFs (Short) ETFs
ProShrsUlSht30 DXD xA ETFs (Short) ETFs
ProShrsUlShtRE SRS xA ETFs (Short) ETFs
ProShrsUlShGold GLL xN ETFs (Short) ETFs
ProShrsUlShtDow SDOW xN ETFs (Short) ETFs
ProShrsUlShtRs TWM xA ETFs (Short) ETFs
ProShrsUlShBraz BZQ xN ETFs (Short) ETFs
Direxion RelEst DRV xN ETFs (Short) ETFs
ProShrsUlShRus2 SRTY 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.

Take care,


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