Wednesday, September 7, 2016

New Entry Signal - September 7 Trading Day

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Market Overview - New short-term entry signal

Long-Term Timer:  Long
Intermediate-Term Timer: Long
Short-Term Timer: New Long

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Long-Cash Ratio

The LCR measures the number of stocks that are rising in both price and volume ("long") and those that are falling in price and/or volume ("cash").  When I apply various moving averages to this number, I get a sense of the rate that this is happening.  Specifically, looking at the slopes of these moving averages -- or their rates of change -- gives me insight.

A sweet spot for jumping into the markets exists when we go from a  negative slope to a positive slope on the 8-day moving average for the LCR:

Click on the image to enlarge.

I've circled where we have just crossed into this zone, so "the pump is primed", so to speak.  The action from here is to get shopping lists ready and if stocks continue to break out, enter base positions on those stocks.

All this being said, I think it important to note that this signal could be weak.  We are presently in the 43rd day of a short-term up trend on the Q's, according to Wishing Wealth Blog (http://wishingwealthblog.com/).  I've a considerable amount of respect for Dr. Wish, and as far as market timers go, his timers are as good as any.  43 days in any short-term timer is to be considered "long in the tooth".

Strategy

I would like to see continued follow-through on the buying.  Nevertheless, my buying rules remain intact and unchanged:
  1. Start with a quality list of stocks.  I have my own definition of this -- ask if you are interested.
  2. Pick stocks that are GGT "long" rated.  If you are using the TradeStation tool I've developed, then ensure they say "Buy" for the most recent day.
  3. Set an entry price that is 1.01 * the previous day's high.  Use a BUY STOP, Day-Order only (expires when the market closes).
  4. Rinse and repeat.
As stated in my previous blog, my Greenfield Dividend strategy is performing well.  You can follow the trades for free for 30 days at https://collective2.com/details/94780986.  After some adjustments to the rules due to the January massacre, February onward is acceptable and is beating the S&P 500.  See my previous blog entry.

Three stocks that are from my Leader's list and are signalling entry for Wednesday are:

EXEL, GTT, XIN

These stocks are not dividend payers but are showing extremely good price and volume action here.

Conversely, if you are holding ATSG and VCRA, you may want to review those positions, as a sell signal just fired with Tuesday's action.

I'm really paying attention to these symbols today:

EBIX
JBT
MKTX
SCVL
PZZA
DW
CZZ
AMAT
THO
GK
CTRE
SPKE
EVA

They are not perfect, but they all have very good traits and are worthy of my money if they continue moving higher.  These all pay dividends.  I hold several of these.

Note that SCVL is rated "cash" or "Avoid".  Despite this status, it is within a day or two of changing status.

If you subscribe to my Twitter alerts (free!  See below.) you'll see if these continue higher on volume, as the system will automagically tweet when it detects this is occurring.

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My stock alerting service is fully functional and is available at https://twitter.com/grems8544.  Follow me and "Turn on Mobile Notifications" from within Twitter to get notified every time a breakout or pocket pivot is detected on a stock worthy of further consideration.  This service is free and those that are subscribed tell me they really enjoy the notifications and their review of the quality of the stocks is quite positive.  

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Stock updates are posted in a daily file that I attempt to share by the following morning with all subscribers. To review the stocks that you are holding and see how I evaluate them, you need to be a member of my Dropbox.  Send an email to GreekGodTrading [ a t ] gmail {d o t] com, making the appropriate changes to the email address, with the word "DROPBOX" in the subject and I'll add your email.  I also ask that you subscribe to this list using the link to the left (if you are on the blog), as it's the only way I can communicate with Dropbox users, if the need arises.

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As with all my ramblings, you are responsible for your own investment decisions and I am not.  Please do your own diligence, and please take ownership for your actions.  The equities I have listed here are not recommendations -- they are seeds for you to do your own research.

Regards,

pgd