Skip to main content

Pullback running out of gas? - Alert HQ signals for Thursday, Nov 3, 2009

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:
  • 323 Swing Signals -- 321 BUY signals and 1 SELL Signal plus 1 Strong BUY.
  • 62 Trend Leaders, all in strong up-trends according to Aroon, MACD and DMI. We have 29 stocks that are new additions to the list and 25 that fell off the previous list.
  • 62 Trend Busters of which 27 are BUY signals and 35 are SELL signals.
  • 222 Gap Signals -- stocks with upside or downside gaps or gaps that have been closed.
The view from Alert HQ --

Charts of major averages still look pretty awful but I think we're seeing this pullback run out of gas.

Why? Once again I'm putting my faith in the Swing Trading Signals. Over 300 stocks and ETFs bouncing off their lower Bollinger Band, coming out of an over-sold state according to Wiliiams %R and showing gains today. Breadth was good in terms of sectors - it seemed that almost all sectors were represented among this set of BUY signals.

Another indication that risk is becoming acceptable again is that small caps were in favor today. Not only did the Russell 2000 ouperform the other major averages today but there were a number of small cap ETFs on the Swing Signals list as well as plenty of individual small cap stocks.

Are our other signals providing confirmation? Yes and no. The Trend Leaders list is getting down to about as low as it can get. That implies it might be ready to go up, right? The Trend Busters list has a lot of foreign stock ETFs listed among the SELL signals. It shows the global nature of this pullback. Does it also show that the selling of U.S. stocks has begun to dry up?

So maybe I'm stretching to arrive at my opinion that stocks are ready to rise soon. But these are the times when you want to have a few stocks or ETFs picked out that you would be happy to own, especially if you can get them at the current lower prices. It's true that we could use another day or two of gains to confirm the turnaround but it sure seems like stock prices have stopped falling for the time being.

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.
Labels:

Comments

Post a Comment

Popular posts from this blog

Brazil - in a bubble or on a roll?

A couple of years ago, no one recognized the real estate bubble even though it was under everyone's nose. Now, analysts and bloggers are seeing bubbles everywhere they look. One of them, they say is in Brazil whose Bovespa stock market index has doubled in the last 12 months. Does the bubble accusation hold water? I don't think so and here are 7 reasons why Brazil is by no means a bubble economy: Exports have held up over the past year thanks to demand from China for Brazil's soya exports and iron ore. This was helped by the the Brazilian government's drive to improve trade links with Asia and Africa. Export diversification, spurred by a more active trade policy and increased focus on "south-south" trade under current president Lula, helped mitigate the decline in demand from OECD (Organization for Economic Co-operation and Development) countries A "sensible" economic framework has been in place since the 1990's. This has included inflation ...
4 comments
Read more

Trade Radar gets another update

Some of our data sources changed again and it impacted our ability to load fundamental/financial data. In response, we are rolling out a new version of the software: 7.1.24 The data sourcing issues are fixed and some dead links in the Chart menu were removed. So whether you are a registered user or someone engaged in the free trial, head over to our update page and download the latest version. The update page is here:   https://tradingstockalerts.com/software/downloadpatch Contact us if you have questions or identify any new issues.
Post a Comment
Read more

Time to be conservative with your 401K

Most of the posts I and other financial bloggers write are typically focused on individual stocks or ETFs and managing active portfolios. For those folks who are more conservative investors, those whose main investment vehicle is a 401K, for example, the techniques for portfolio management might be a little different. The news of stock markets falling and pundits predicting recession is disconcerting to professional investors as well as to those of us who are watching our balances in an IRA or 401K sag. What approach should the average 401K investor take? Let's assume that the investor is contributing on a regular basis to one of these retirement accounts. There are two questions that the investor needs to ask: 1. Should I stop putting the regular contribution into stocks? My feeling is that investors making regular contributions are being handed a present by the markets. Every week the market goes down, these investors are lowering their average cost. When markets reco...
7 comments
Read more