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 02/19/2010:
$INDU $SPX $COMPQ $RUT
Monthly Momentum Neg (OB) Neg Neg Neg
Weekly Momentum Pos Pos Pos Pos
Daily Momentum Pos (OB) Pos (OB) Pos (OB) Pos (OB)
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.
ETFs will make a return soon. Sorry for the inconvenience. I am slowly coming back to life.
The stocks that demonstrated bullish pattern reversals are shown below. The stock at the top of the sector list is the cheapest on a price to near-free-cash-flow basis, the stock at the bottom of the sector list is the most expensive on a price to near-free-cash-flow basis.
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Today’s bullish reversals are dominated by healthcare issues, but telecom, retailers, utilities, auto and truck OEMs, and building construction related issues. With the Fed jacking the discount rate, we are likely to see early volatility, but I think the central theme remains true. There are oversold issues in healthcare (particularly supplies and specialty healthcare products (MMSI for one). BWLD though stung by earnings disappointments seemed also to hold recent support. I will also watch this one.
I am still installing files today and will do so until Sunday when I head to Baltimore for software training with the new versions of NeuroShell Day Trader Professional and Chaos Hunter. I should be back to nets when I get back from that conference on Feb 26. Until then, I will keep plugging away to get the set ups running.
Thanks again for your patience. If one is long or short, we are about, in my opinion, to find out what the real course of market direction is going to take for the next quarter at least. We are once again near key resistance levels, and currency valuations are also at key levels of support and resistance. Be careful with all positions in either direction. Follow your trade plan rules to the letter, including those for position size, as we get some final determination of the next prevailing direction of the markets.
Take care,
DBB
