Skip to main content

Alert HQ signals for Tuesday, April 27, 2010 -- another tipping point?

This post is announcing that Tuesday'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:
  • 30 Swing Signals -- 9 BUY signals and 21 SELL signals.
  • 374 Trend Leaders, all in strong up-trends according to Aroon, MACD and DMI. We have 62 stocks that are new additions to the list and 272 that fell off the previous list.
  • 23 Trend Busters of which 6 are BUY signals and 17 are SELL signals.
  • 175 Gap Signals -- stocks with upside or downside gaps or gaps that have been closed. 83 are bearish gaps and 92 are bullish gaps.
The view from Alert HQ --

You know the market has taken a hit when 8 out of 9 Swing Signal BUY signals are inverse ETFs. The bearish tone is reinforced by our Trend Busters list where SELL signals are in the majority. The number of stocks on the Trend Leaders list has decreased significantly. Only the Gap Analysis list shows some small signs of bullishness.

Since the Alert HQ signals are derived from a sweep of 7000 stocks, a close approximation would the Vanguard Total Market Vipers ETF (VTI). The chart follows:


A number of technical indicators suggest we are starting a short-term pullback. VTI has fallen below its 20-day moving average, MACD is looking bearish, slow stochastics have fallen below 80 and Williams %R has fallen from above -20 all the way down to -72. These are all classic technical analysis signals suggesting short-term bearishness. It looks like stocks are at a tipping point. I wouldn't be surprised to see VTI at least test its 50-day moving average before we're done.

If you agree that we're in for a pullback you still need to consider whether you wish to indulge in a short-term trade or whether you are willing to take the long view. If you're looking for the short-term trade, inverse leveraged ETFs such as we have on the Swing Signals list are good choices. If you are looking longer term, this is when you need to pull out your list of buy candidates. If you're like me and you are confident the long term trend is clearly up, these pullbacks present buying opportunities. As always, browse Alert HQ for a good selection of both BUY and SELL signals that could help you no matter which persuasion you happen to be.

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.
Labels:

Comments

Post a Comment

Popular posts from this blog

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

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

The Trouble with Trend Reversal Indicators

Many of us use various trend reversal indicators to time our trades. Our desire is to determine when prices have changed direction so that we can ride the new trend. Why doesn't it always work out? The first reason, of course, is that unforeseen events often drive prices in unexpected directions. That is something we can't change and it often makes all of us technical traders crazy. On the other hand, sometimes an unforeseen event is a prelude to a new trend. A stock spikes up on a what seems to be a one-time piece of good fortune and soon falls back. Does it start making its way back up or does it resume a previous down trend? The conflict within trend reversal indicators is that, though they can definitely tell when prices change direction, they suffer from two problems. One, they often can't determine how significant that move in prices actually will be. Two, they are often lagging indicators. As such, they can be late in providing a signal, sometimes leading the investo...
1 comment
Read more