One of the great things about long term holds that are performing well is that we can ride them down to support levels, particularly after they have made a strong move up the short term moving averages and need to come back and test the 50 day MVA. Even strong stocks adhere to this pattern. […]
The Economic Cycle Research Institute puts out a weekly gauge of leading economic indicators and also calculates a 6-month leading indicator as well as an inflation indicator. There is a website at http://businesscycle.com. Not all of the information provided is free. You can get historical data free, but not the current data. The ECRI has […]
We always continue to watch stocks that have been in the reports even if they do not hit the buy points. Many times a stock will be in a base and looks close to breaking out, but needs more time. As long as the pattern holds, we will continue to look at the same buy […]
The channels we discuss are not generated by any charting service tools. What we are doing on these and what we teach in the online seminars is to draw a trendline for the stock or index. It could be an up trendline or a down trendline depending upon which way the stock or index is […]
A covered call is where you sell a call option on a share of stock you own. What you are doing is selling the right to buy your stock at a specified price (the strike price) to someone else. Sounds pretty crazy at first, especially if you want to hang onto your stock. However, as […]
Predominantly we look at the S&P 600 (small cap) and S&P 400 (mid-cap) to get a look at what these stocks are doing. The S&P 600 ticker is $SML. The S&P 400 is $MID.
Yes, you are correct on the general idea that pullbacks on higher volume are usually not a good thing. The reason SGI was more appealing Monday night is that it pulled back on low, below average volume the prior week, but the past two sessions it is trying to find support at the 18 day […]
From your question I assume the point the stock pulls back to is the buy point. There is a reason we picked the buy point; usually it represents a break over resistance. When resistance is broken it is ‘soft’ support, i.e., it should hold as support on a test lower. It does not become ‘hard’ […]
Delta is the measure of how much an option price changes for every move up or down in the underlying security. A delta of 1.0 means that for each $1 move in the underlying stock, the option moves $1 as well. A delta of 0.50 means for every $1 move, the option moves $0.50 in […]
On the web you can get very current data on volume and advancers versus decliners at http://quote.yahoo.com/mo.