Tuesday, December 14, 2010

Intermediate Timer is LONG, Short-Term is Indecisive

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Meeting Reminder:


There is a monthly meeting this coming Saturday, December 18th, from 1 p.m. to 3 p.m. at the Great Falls Library, 9830 Georgetown Pike, Great Falls, VA  22066.  The GGT, LLC investment club will meet immediately following the advertised meeting.  WebEx information will be provided in the Yahoo! groups.

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Summary for Monday, December 13th

  • The GGT LCR system is bullish with all of the slopes of the EMAs pointing upward.  Until these show some signs of pointing downward, the database is expanding on 5d to 65d periods.
  • The GGT Pricing system is bullish with all of the slopes of the EMAs pointing upward.  Since we put prices in our bank accounts, this is suggesting that your account has moved upward in value from 5 days ago, as well as 65 days ago.
  • The Short-Term LCR Change Timer is floundering at the CASH-LONG (0) level, indicating indecision.  The bias is towards CASH on a short-term (~ 1 week) basis, e.g., entering right now could be difficult to attain profits.
  • The Intermediate-Term Elder Force Index Timer is indicating LONG.  I interpret this as being an indication that we should be purchasing stocks on the LONG side, certainly not shorting.
The markets are slowing marching upward with a 3 steps forward, 2 steps back approach.  This is fine, so I am purchasing strong stocks on the pullbacks.

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Elder Candidate Stocks

There are over 400 stocks that meet the most basic form of Elder Force Index criteria going into today's action. The basic filter is this:
  • Close > $1
  • 50d MA Volume > 100K shares
  • Force Index (2d) < 0
  • Force Index (13d) > 0
  • Dollar Volume > 6,000,000
Increasing the minimum share price to $5 and the Dollar Volume > 10M reduces the list to 340 candidates.  Many to choose from.

Here is a short list of some of the Elder candidates that I am watching:

ZAGG
RVBD
DECK
FFIV
GPI
ATHN
NTGR
OVTI
PLCM
DCTH
DAN
AYI
GRA
RCII
FINL
NDSN
ADSK
ATPG
PSS
VLO

I plan to enter on strength, e.g., increasing prices on increasing volume.

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Remember, you are responsible for your own investment decisions, and I am not.  Please take ownership for your actions.

Regards,

pgd