Monday, March 11, 2013

All Timers Long, Futures Pointing Down, Possibly Good Opportunity for Entering

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Futures are pointing downward this morning, and all my timers are LONG (short-term, intermediate term, long term). This could be a good buying opportunity.

The following stocks are from my Leader's List for the week and are valid Elder Entry Candidates. They have not been screened for EV (http:/www.effectivevolume.com), so do your own diligence on these:


As with all my images, right click on the image to open in a new tab or window.

An Elder candidate on my list meets the following criteria:

1) the 13d EMA of price is in an up slope condition (positive short-term day-over-day growth)
2) the 34d EMA of price is in an up slope condition (positive long-term day-over-day growth)
3) The 2d Force Index (google it) is NEGATIVE, indicating a short-term pullback in a long-term uptrend
4) The 13d Force Index is POSITIVE, indicating demand over a longer period for the equity

These 4 conditions set up the trigger.

If the price takes out the previous high, enter the equity a few pennies above the high. I typically add 0.05% or 0.1% to the high as my threshold. This is a conservative entry method, and it allows you to trigger entry if the stock continues moving upward.

A more aggressive approach is to use the previous close. More prone to failure in my opinion, but it also gets you in at a better price.

In either condition, if the BUY STOP does not trigger at your established level on the given day, simply readjust your order so that the new price is the entry on the next day. MAKE SURE the other conditions still apply (items 1-4 above).

Note that I own CVI, DXPE, OCN, and SPF from the previous list.

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My Long-Cash Ratio (LCR) Slope Model continues to show bullishness on all fronts:


Right-click on the image to open in a new tab or window.

Note that the LCR continues to grow, indicating stocks are participating in this new leg upward, and that the left side of the table is showing more green. These are positive slopes, so on multiple time frames we are seeing stocks participate in price, volume, AND price rate of change performance. This is healthy.

On the left side of the table we have a sea of green. This tells me that we are seeing continued acceleration upward in stock participation, e.g., more stocks are joining the party day-over-day than are leaving, and everybody loves a party.

All signals are prone to reversal, but for now, all my indicators continue to point to the long side. I'm buying the pullbacks in accordance with the Elder entry method described above.

Here's my timer status:



EV stocks that I have a particular interest in today if they continue their accumulation by the large players are as shown:






These three stocks are from my leader's list and all meet my criteria for possible entry.

As always, you are responsible for your own decisions, and I am not.  Please do your own diligence, and please take ownership for your actions.

Regards,

pgd