I'm in the process of setting up what will be the watch lists strategies for Market Gems in the future. There will be basically about 10 trading strategies that will be the prevailing themes throughout my watch lists. In giving the 'technical/fundamental' analysis of the watch lists I will be listing the strategies that make the particular stock a 'choice'. For example I'll be calling indicators that you will be familiar with like MACD bullish breakouts, Stochastic breakouts, RSI and volume breakouts. I'll be call my favorite breakouts which are 'bouncing off the 7 day moving average' and bouncing off the '50 day moving average'.. I'll be calling trendline, and breakouts above resistance, point & figure breakouts, channel breakouts, breakouts of 2 months basing patterns, strong stocks after 3-5 down day retreats, etc, volume/price breakouts (another favorite). I'll be acquainting you with my favorite Market Faciliation Index, and the Klinger volume oscillator and On-Balance Volume. I will be using trendline channels and trading in the direction of the slope of the trendline which I will call as "trendline is sloping upward" etc...
My goal is to acquaint you first with the strategies on a special 'education site' on Market Gems and then use the strategies on the 'General Watch Lists'. So when I say RSI is bullish, Stock is under ACCUMULATION, or the MACD gave a buy signal you will be familiar with that strategy. When I say that the moving averages are bullish and moving upwards you will nod familiarity and know this indicator. When I say the stock has broken a point & figure double top, you will be familiar with that as well. So in the next few days, I'll be composing a list of strategies that will be the basis of the watch lists. Of course I'll be adding strategies and indicators every once in a while, just as I've become interested in the smoothed ROC and find interesting indicators in the Technical Analysis of Stocks and Commodoties Magazine. But basically I like keeping with simplicity. It's worked for me in the past and I think it will work for you as well.
For 'earnings plays' paradoxically it is much simpler. When the stock opens 1/2 point or so higher than previous close on higher volume you might want to get it. The theories behind earnings plays are somewhat laxer simply becuause the upward trend is generally in place longer than a general watch list. Anticipatory upswings are usually strong and can last anywhere from 1-3 trading sessions. For the stock to be even considered a earnings play it has to pass many more stringent criteria than a general watch list pick. So you would be safer in trading it since it's already undergone rigorous filtering. (i.e. LEN, CCL, PRGS, CKR, SLR, JBL).. |
