Thursday, November 6, 2008

There's Always Diamonds in the Ruff

Rough times, that is. Even when the market tries to take back some the gains, there are always some stocks waiting to be found. I never would have found today's gem if it wasn't for Stock Assault. A stock trading with a forward P/E of 2.34, a price/book of .78 (that's right), operating margin of 38.11%, short interest down 63% from the prior month and mutual funds
buying the crap out of it by a 99 to 1 margin.

Let's get ready to rumble! Hope everyone took note of the sell issued on HIG. That was the perfect call and a perfect exit. I keep finding myself more amazed at the power of StockAssault as time goes on.

- Roger

MACD as an Indicator

The Moving Average Convergence Divergence (MACD) indicator is a helpful tool for comparing the short-term momentum of a stock relative to its longer term momentum. Two lines are used: the MACD line and the signal line. The MACD line is the difference between two exponential moving averages, usually the 12 and 26 day. The signal line is the 9 period moving average of the MACD line.

When the MACD line crosses above the signal line, it generally signals a buy, and crossing below a sell. Many times you will see this laid over a MACD histogram that simply graphs a line chart showing the difference between the two, with bars avove zero indicating a buy "zone". This is just another of many technical indicators you can use when evaluating stocks.

Have a good one,
Roger

Monday, November 3, 2008

Friday's Diamond Edition Pick Windfall

Those of you who took Friday's Diamond Edition Picks are seeing over 40 % returns today. One of these hidden "diamonds" HIG, has room to run as the book value is 55 dollars, and it's only trading around 14. What an oversold gem this turned out to be. Whoops, now up over 15 dollars at a 50 percent gain as I type. Let's see how far we can go today. This is just another example of the power of AI and a killer stock app.

Have a good one,
Roger

Specific Settings

I have often mentioned slow stochastics, but have failed to give the specific settings that I use. They are as follows: %K (15,3) %D (15,3,3). For parabolic SAR I use an acceleration of 0.032 and a max. acceleration of 0.2. I hope this helps so that you can be seeing the same things I am.

On a side note, it looks as though we are seeing a market in recovery. Often times the stock market leads a general economic recovery by several months. Let's hope that this is sustainable and I think it will be.

Have a good one,
Roger