Friday, January 16, 2009

Timid Market

I threw out some stocks today just by looking at the volume of pre-market trading. They were all up in pre-market, so I tossed them up for grabs. Don't panic if they take a few days to crank up. I went this afternoon and checked the technicals on them, and they are solid picks.

AXP will rise and fall with financials. The recent influx of more bailout money will shore that sector up after the sheep have scattered and the hedge funds are through naked shorting. DOW is solid, and at an all time low. It is set for a bounce. LLY is technically ready. PFE is super strong and technically a go also.

I don't want any of you to think I have abandoned the blog, I have just been really busy on an exciting project. I advise, however, that you continue to sort your picks and be in constant review of market conditions.

Stops are a must for capital preservation, and I am going to be going over some tips and tricks for stop settings as well as limit orders for buying.

Have a good one,
Roger

8 comments:

  1. Hi,
    I was just wondering what is better when buying a certain stock. To place a limit order or market order?
    Sean

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  2. Do you have advice on how to select stocks to buy when SA2.0 offers 25 stocks on one day? I know how to setup and manage a trade, but I don't want to use a random process to select stocks from the ones offered. Do you have a systematic screening process?

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  3. @Sean
    Personally, I use limit orders so I can buy a stock on my terms and not the seller's. Market orders place you at the mercy of the current ask price, and can also hurt if there is a giant gap in pre-market trading. However, a market order is fine once the market is open and you just want to enter a trade.

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  4. @anonymous
    I do have a systematic process. You can read my prior posts to get an idea of what I do. I would generally suggest that you screen the stocks by first glancing at the news for each one on Yahoo Finance, tossing out the ones with negative posts. I would then look at The %K of slow stochastics for each one, and toss out the ones above 20.That would be a good start.

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  5. Roger, do you use the slow stochastics from before the market opens or? after the market opens

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  6. Roger,
    This is so incredibly helpful = your- prefiltering and your educating us all on how you select - I really thank you.

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  7. @Feerless
    I use it before the market opens. I've also noticed that the same settings in different charting programs yields somewhat different results. Slow stochastics is something I use, but any method of determining an oversold status will work.

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