Wednesday, April 2, 2014

New Long Signal for 4/2 Entry

A technical glitch delayed my analysis until late this morning.

With the close of markets on Tuesday, 4/1, my intermediate timer has signaled that I should enter the market today on the LONG side.

The table above shows the performance statistics for this timer since 11/21/08 and overall, it's a good signal when to get in to the markets.  It's not perfect, but no system is.  The important thing is to have a system.

I'm watching the following stocks closely this morning and any breakout, then rebound off the VWAP (Volume Weighted Average Price) will most likely force me to take the bait.  There have been numerous entry points the past two days.


Here's what that looks like for a stock on my list, PVTB:

Another stock on my watchlist that I didn't get into (darn) yesterday was HPJ:

My combined leaders list is part of my Dropbox share folder and nightly GGT postings, so if you subscribe, you should be able to use my information for getting into some quality positions.

Projected volume for today needs to be estimated to be over 200% of the largest down-day volume over the past 10 days (a Pocket Pivot).  If I see a breakout on low volume I won't bite.

To put this in perspective, FEIC floated around 700% volume all day and was up nearly 3%.  Only in the last hour of the day did volume jump to over 1800%.  I have a position in FEIC.

The distribution counts for the major indexes remains high across the board.  I don't like jumping in with both feet when this is the case, but my system does not account for distribution count in terms of dollars to commit:

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

But, with the DOW and the SP500 closing at new highs, the momentum cannot be ignored.

In full disclosure, I presently hold positions in the following equities:


All positions are in positive territory.  My stops are relatively tight so if the market reverses I'm out again.

I have day-limit orders pending at the open this morning on the even 100-share boundaries so that they are easy to pick up.  If executed, they will be at deep discounts to their close.  I give it a 50/50 that they will execute.


As always, do your own diligence, and take ownership for your actions.  You are responsible for your efforts, and I am not.