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Kick the tires and light the fires - Tuesday Swing Signals, Trend Busters, Trend Leaders and Gap Signals for Oct 6, 2009

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: 209 Swing Signals -- 197 BUY signals and 8 SELL Signals plus 4 Strong BUYs. 184 Trend Leaders , all in strong up-trends according to Aroon, MACD and DMI. We have 80 stocks that are new additions to the list and 40 that fell off the previous list. 22 Trend Busters of which 14 are BUY signals and 8 are SELL signals. 227 Gap Signals -- stocks with upside or downside gaps or gaps that have been closed. The view from Alert HQ -- Pullbacks these days sure seem to be short and shallow. Two weeks of declines and now the market is taking off like a jet. Our signals at Alert HQ have swung way bullish again. I don't think we've ever had such a preponderance of BUYs on our Swing Trading Signals list. I don't want to go out on a limb here, but this really suggests we're going to new highs a...

Software a defensive sector? Who knew?

I often write about tech stocks on this blog. Today I read an interview with one of the most well-known managers of a technology mutual fund. The Wall Street Journal had a conversation with Paul Wick, manager of the Seligman Communications and Information fund (SLMCX). With 20 years as manager of this fund, he has consistently ranked in or near the top 10% among his peers. Mr. Wick makes several points that will be familiar to fans of tech stocks. He comments that many tech stocks have "grown up" (my phrase), have solid business models and have reacted to the downturn by cutting costs and finding other ways to remain profitable. He contends that the tide is turning for many tech sectors and, therefore, the run-up in many tech stocks is justified. Even some of the lower quality companies have reasons to bounce. These are ideas that are not unusual though they are open to dispute among those who feel less bullish on the economy in general or tech stocks in particular. Prompted ...

The trend may not be your friend this time...

I know that it really isn't proper to do technical analysis on leveraged ETFs. I know that it is always better to analyze an underlying index. Nevertheless, I was struck by the fact that out of the 25 BUY signals on our Trend Busters list this weekend, fully 23 of them are inverse or inverse leveraged ETFs. In other words, they have all broken above downward-sloping trend lines and are threatening to initiate a new upward trend. Here they are listed below: Symbol Name DPK DIREXION DAILY DEVELOPED MARKETS BEAR 3X SHARES EDZ DIREXION DAILY EMERGING MARKETS BEAR 3X SHARES ERY DIREXION DAILY ENERGY BEAR 3X SHARES FAZ DIREXION DAILY FINANCIAL BEAR 3X SHARES DRV DIREXION DAILY REAL ESTATE BEAR 3X SHARES TYP DIREXION DAILY TECHNOLOGY BEAR 3X SHARES SEF PROSHARES SHORT FINANCIALS RWM PROSHARES SHORT RUSSELL2000 SBB PROSHARES SHORT SMALLCAP600 SPXU PROSHARES ULTRAPRO SHORT S&P 500 SMN PROSHARES ULTRASHORT BASIC MATERIALS...

Weekly Review - sentiment worse than stock performance?

A second week of declining markets has investors questioning whether stocks have come too far too fast. A week of disappointing economic reports has bears saying "I told you so." Is the rally over? We look for clues in some of the charts that follow. The view from Alert HQ -- Charts of some of the statistics we track at Alert HQ are presented below: I look at this chart with mixed emotions. On the one hand, I am heartened that the number of stocks whose 20-DMA is over their 50-DMA (the magenta line) is holding up quite well despite two weeks of declines. On the other hand, with the significant drop in the number of stocks above their 50-DMA, I can't help but think that stocks will continue to drop until we see that magenta line dip more noticeably. After all, the odd situation where our magenta line stays up while the yellow line drops is the result of stocks falling precipitously and the fact that their moving averages now need to "catch up" with the recent mov...

Weekend Winners and Losers - Alert HQ BUY and SELL signals for October 2, 2009

This post is to announce that the weekend's stock signals are available from Alert HQ. Each week we scan about 7300 stocks and ETFs, checking fundamentals, performing technical analysis and looking for fresh BUY and SELL signals. Out of this process we generate the following lists: Alert HQ stock alerts - based on a combination of proprietary and standard technical analysis techniques, we identify stocks or ETFs that are undergoing reversals, either to the upside or to the downside Trend Leaders - just like it says, a collection of stocks in strong up-trends Cash Flow Kings whose free cash flow yield is 25% or greater Bollinger Band Breakouts - stocks or ETFs that have moved at least 3% above their upper Bollinger Band or at least 3% below their lower Bollinger Band Swing Trading Signals - stocks that have bounced off a higher or lower Bollinger Band Trend Busters - stocks or ETFs that have violated a current trend. Gap Signals - stocks or ETFs gapping up or down during the ...

Down we go - Thursday Swing Signals, Trend Busters, Gaps and Trend Leaders for Oct 1, 2009

This post is announcing that Thursday's Swing Signals, Trend Leaders, Gap Signals and Trend Busters are now available at Alert HQ . All are based on daily data. Today we have the following: 28 Swing Signals -- 3 BUY signals and 25 SELL Signals. 218 Trend Leaders , all in strong up-trends according to Aroon, MACD and DMI. We have 43 stocks that are new additions to the list and 178 that fell off the previous list. 62 Trend Busters of which 26 are BUY signals and 36 are SELL signals. 318 Gap Signals -- stocks with upside or downside gaps or gaps that have been closed. The view from Alert HQ -- Not much to say but stocks took a real tumble today. Our Tuesday signals, which suggested there was a slowing in the negative momentum, turns out to have been a head fake. Once again we have lots of inverse leveraged ETFs generating BUY signals. We have a Trend Leaders list with the fewest number of stocks on it that we have seen in a long time. SELL signals again outnumber BUY signals on th...

Divergence - am I coming or going?

When I write about stock market sectors or individual stocks, I generally give an overview of the fundamentals. On the other hand, all the BUY SELL signals we offer at Alert HQ are strictly based on technical analysis. Whereas the Alert HQ methodology primarily looks for technical indicators that are in agreement in order to generate its signals, there is an important school of thought that says that it is important to note when indicators are not in agreement. This is known as divergence. More precisely, divergence is when the price of an asset (a stock or ETF, for example) and an indicator, index or other related asset move in opposite directions. An investor looks for those instances where the trends begin to head in opposite directions. This is interpreted as a signal that a turn in the asset price is imminent. The difference between stock or index prices and MACD is one of the more common divergences that investors watch. Others involves prices and either stochastics, Money Flow ...