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Strategies & Market Trends : Effective Collaboration - Team Research for Better Returns:

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Kirk ©
To: Kirk © who wrote (5186)5/12/2017 11:02:36 AM
From: The Ox1 Recommendation  Read Replies (3) of 8288
 
There's no real rule of how or why a stock gets put on the reversal watch list. The decision can be somewhat arbitrary when I look at a company but in general, it's when the stock has been sliding for a while or recently reached a new 52 week low while also being considered for "potential" future investments or trades. Some make our trading portfolio, many do not.

There is a rule that a stock must rebound 20% to be taken off. That rule is adjusted now and then for certain stocks or ETFs/ETNs whenever I consider it appropriate. For example: Message 30562468
I'm putting UUP on reversal watch. Due to the nature of this beast, I'm lowering the limit to a 5% move, as even 10% seems like a reach at the moment. Time to start watching for a reversal, IMO:


With respect to FNSR, normally I would be hesitant to put a stock on the reversal watch after it's already rebounded 15%. I have no worries about placing any stock on the list, especially when requested by others. If the stock drifts lower, each new low that gets made after a stock is on the list reduces the "rebound" bar, price wise. I also adjust the date in the portfolio to match the low being shown. I try to update the portfolio regularly and rarely miss "new lows" for very long (but it certainly can happen).

I'll go ahead and put it on reversal watch and we'll see how long it takes to move up another 20% from here or from its next bottom.






Portfolio "Reversal Watch", Manager: The Ox

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