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Thursday, May 6, 2010

Stocks plunge, sort of -- Alert HQ signals for Thursday, May 6, 2010

This post is announcing that Thursday's Swing Signals, Trend Leaders, Trend Busters and Gap Signals are now available at Alert HQ. All are based on daily data.

Today we have the following:

  • 15 Swing Signals -- 2 BUY signals and 12 SELL Signals and one Strong BUY.
  • 44 Trend Leaders, all in strong up-trends according to Aroon, MACD and DMI. We have 5 stocks that are new additions to the list and 166 that fell off the previous list.
  • 174 Trend Busters of which 2 are BUY signals and 172 are SELL signals.
  • 195 Gap Signals -- stocks with upside or downside gaps or gaps that have been closed. 152 are bearish gaps and 43 are bullish gaps.
The view from Alert HQ --

A merely crummy day turned into a rout as stocks suddenly plunged in the afternoon. Intraday, the S&P 500 was down as much as 8.6%. Hard to believe that one could breathe a sigh of relief when stocks ended the day down only around 3.25% .

Combine today's horrible market action with a pullback now registering a roughly 7.5% decline from recent highs and it's no surprise to see Alert HQ piling up the SELL signals. The Trend Leaders list just hit a new low, not by a little but by a lot. On the other hand, the Trend Busters list has hit an all time high; unfortunately all but two are downside breakouts. Likewise, on the Gap Analysis list the downside gaps greatly outnumber upside gaps, a situation we don't usually see, even when the market is down.

Not every stock was down, though. To my amazement, there was a strong BUY on the Swing Signals list: Lihir Gold (LIHR). The company is apparently in the process of being bought by another Australian mining company, Newcrest. The combination will create the fourth largest gold mining operation in the world. Gold in general was up today so it looks like LIHR was going with the flow.

So Alert HQ is a playground for bears today but stay tuned -- when things start to turn around, the first signals will be right here.

Using our signals --

If you're a momentum trader, the Trend Leaders list is a good place to go shopping. If you practice technical analysis, check out the Trend Busters. And if you are a short-term trader or even a day trader, our Swing Signals or Gap Signals may provide some good trading ideas.

Found a few stock picks you are interested in? If you are looking to refine your entry and exit points, you should take a look at what our friends at Hottinger's E-Zone Signals have to offer.

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