Skip to main content

Weekend Winners and Losers for May 28, 2010

Winners and LosersThis post is a combination of our occasional Weekly Review and the Weekend Winners and Losers available at Alert HQ.

Today we have the following stock picks and signals:
  • Reversals based on daily data, we have 20 Alert HQ BUY signals and 9 SELL signals
  • Reversals based on weekly data, we have 2 Alert HQ BUY signal and 331 SELL signals
  • We have 24 Bollinger Band Breakouts based on daily data and 170 Breakouts based on weekly data.
  • We have 605 Cash Flow Kings
  • 76 Swing Signals -- every one is a BUY signal
  • 18 Trend Leaders, all in strong up-trends according to Aroon, MACD and DMI. We have 4 stocks that are new additions to the list and 3 that fell off the previous list.
  • 28 Trend Busters based on daily data of which 21 are BUY signals. We also have 183 Trend Busters based on weekly data (all are SELL signals!)
  • 179 Gap Signals -- stocks with upside or downside gaps or gaps that have been closed. We see 66 downside gaps and 113 upside gaps based on daily data. We also have 36 Gap Signals based on weekly data.
The view from Alert HQ --

This weekend shows some normalcy returning to the Alert HQ signals. There are some BUY signals on the Trend Busters list where it had been all SELL signals recently. The Trend Leaders list seems to have bottomed out. Upside gaps outnumber downside gaps by a reasonable number.The Reversals based on daily data have a modest number of BUY signals and a small number of SELL signals.

Where things are still a little wacky is on the Swing Signals list where we again have nothing but BUY signals. This is an unusual occurrence that has been happening only during the last week or so of this current downturn. Also unusual is the preponderance of SELL signals on the Reversals list based on weekly data.

What all this indicates is that things are settling down but we are not yet back to normal. A look at some of the numbers we track at Alert HQ may help put things in perspective.

In the chart below we count the number of stocks above various moving averages and count the number of moving average crossovers, as well. We scan roughly 6400 stocks and ETFs each weekend and plot the results against a chart of the SPDR S&P 500 ETF (SPY).

SPY versus the market, Moving Average Analysis, 05-28-2010

The yellow line showing the total number of stocks above their 50-day moving average has dipped down to levels last seen at the March 2009 lows. There is a bit of a rebound going on now and that is a hopeful sign. The magenta line showing how many stocks still have their 20-day MA above their 50-day MA has plunged straight down and no rebound has occurred yet. About the best that can be said of this chart is that maybe things won't get much worse. Thus far, there aren't many solid signs of recovery in evidence.

The next chart provides our trending analysis. It looks at the number of stocks in strong up-trends or down-trends based on Aroon analysis.

SPY versus the market, Trend Analysis, 05-28-2010

The yellow line showing total number of stocks in up-trends has fallen about as low as it can go. The red line showing number of stocks in down-trends is at an elevated level but not at a record high. Once again, there's not much good that's evident in this chart. It does make a case, however, for saying that we are due for a bounce.

The outlook --

Though the Dow and the S&P 500 are still struggling, the NASDAQ (and QQQQ), the Vanguard VTI Total Market VIPERS (VTI) have at least recovered above their 200-day moving averages and that's a good sign. It is often significant when an index or stock tests the 200-day MA and is able to close above that level. It is usually a sign that things will be getting better.

Yesterday I wrote a post detailing my arguments why stocks are not over-priced, especially considering how oversold we are. You can read it here.

Which leads me to say that from both a technical and a fundamental viewpoint, stocks should be ready for a bounce. Let's just hope the European situation doesn't derail what should be an imminent recovery.

Comments

Popular posts from this blog

Running TradeRadar on Windows 7 and Windows 8

Development of the original TradeRadar Stock Inspector software was begun back in the days before Windows 7 and Windows 8 were available.

As these newer versions of Windows have become more popular, we have heard from some users that they are having problems installing and running TradeRadar on their newer PCs.

The good news is that TradeRadar will work just fine on Windows 7 and Windows 8. All you have to do is adjust the Windows Compatibility Settings to ensure TradeRadar runs as intended.

It is recommended that you can apply Compatibility Settings when running the initial installation; however, it is also possible to apply Compatibility Settings after the program has been installed.

Prior to installation
After downloading the install program, go to the folder where you have stored the TradeRadarStkInsp_7_Setup.exe or TradeRadarStkInsp_7_PRO_Setup.exe executable. Right-click on the executable file and select Properties. Click the Compatibility tab. Adjust the Compatibility mode to …

Unlock Stock Market Profits - Key #1

This is the first in an ongoing series of articles where I discuss what I feel are keys to successful investing. It is based on a post that provides a summary of the ten keys that individual investors should use to identify profitable stock trades. (Click here to read the original post)

There are two basic steps to investing. First, you need to find stocks that seem to have some potential. Then you have to determine whether these stocks are actually good investments. There are many stocks that at first glance look interesting, but further research reveals that there are too many negatives to warrant taking a position.

This first post in the series starts at the beginning: getting good investment ideas.

Key #1: If something special is happening to a stock, it will be reflected in some kind of unusual activity in the markets.

As individual investors, we will never be the first to know; however, unusual activity can be an early sign that allows us to follow the Wall Street professionals and …

Unlock Stock Market Profits - Key #4

This is the fourth article in a series of posts describing 10 tools to help you identify and evaluate good investing ideas. It is based on a post that provides a summary of the ten keys that individual investors should use to identify profitable stock trades. (Click here to read the original post)

With this fourth post, we will continue another step along the path of finding stocks that seem to have some potential. The first post in the series discussed how to use unusual activity to identify investing ideas. The second post described how to use stock screeners. The third post described how to use lists of new highs and new lows. This post will focus on identifying social or business trends in order to find investing ideas.

Information on new trends might turn up anywhere. In conversation with friends or business associates, in newspapers or magazines, on TV or though your work. The key is to be aware of trends and how they start, stop or change. We'll start by describing what to lo…