Typically it is not a good sign for a stock to announce a reverse stock split. It is usually a defensive move taken to stay listed on an exchange or otherwise generate price stability (at a higher level), something the company has been unable to do on its own. The split itself does not change […]
The 6 months would be the length of the base. During the base we look to see whether the stock is being accumulated by big money institutions or are they being quietly sold off. By counting the weeks the stock rises in price (as measured by the close each week versus the prior week close) […]
You have to look at the volume in conjunction with the price to determine if there is accumulation or distribution. A price gain on rising volume is accumulation. A price gain on lower volume is not technically accumulation, just a continued gain. Now if volume is high already and remains high, it can be a […]
You have to look at the volume in conjunction with the price to determine if there is accumulation or distribution. A price gain on rising volume is accumulation. A price gain on lower volume is not technically accumulation, just a continued gain. Now if volume is high already and remains high, it can be a […]
We view short interest on a stock much the same way as we view it on the market as a whole, i.e., a contrary indicator. When short interest is high as it was during September and October before that bottom and then again in January, we view this as setting up the next move higher, […]
Great question. Momentum has to come from somewhere, and the momentum plays we are comfortable in buying into typically get their momentum from the breakout and they are then ‘gliding’ up the short term MVA (the 10 and 18 day MVA, sometimes 20 day), using those levels as support on the pullbacks. Armed with the […]
First we want to say that with the market rising, taking short positions is more difficult. We look for stocks that are in a continuing downtrend or are breaking down through support on volume and preferabley have moved up and failed an attempt to get back over that former support that we are looking to […]
Trailing stops are more art than science. You are balancing two similar goals: maximizing the gain while letting a winner run for you. Too tight and you are stopped out on ‘normal’ volatility on a run. Too loose and you can loose a big chunk of a gain on a stock that takes off on […]
With respect to institutional buyers, there are value buyers, there are breakout buyers, and there are combinations of the two. We like the breakouts on strong volume because they tend to show that more than just a few institutions want that stock. For example, during a base there may be a few institutions trying to […]
During the downtrend there was a series of lower highs and lower lows. That is pretty much the definition of a downtrend. During a strong, entrenched decline, there are often sharp rallies, but they simply take the indexes up to the down trendline. As that trendline slopes down, when the index hits that down trendline […]
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