Wednesday, May 27, 2009
I guess it dont take a weatherman to tell
which way the wind is blowing. When you review chart #1, McNasty, and chart #2 A-D's cumulative, you get the idea that the correction is under way.
Review the idea that yesterday there were 580 NYSE Bullish Engulfing Japanese Candlestick Formations,and today ZERO and 44 NYSE Bearish Engulfing Japanese Candlestick Formations, you get a feel for the schizophrenic nature of the current marketplace.
To me it speaks silently of the "Tweaking & Freaking" of the marketplace. IMO, the news is basically bogus and the focus changes at any given moment. Liquidity-wise, you see the market pulled, prodded and pushed by Fed Intervention Injections "To Maintain Liquidity" as the pretext. Many of us have come to know that move as the old "Greenspan Put" where no large organization can "FAIL". Change the name but the game remains the same. Do you have your stops in place? Do you have shorts working?
Do you have a vision for your game plan and Snap-Audibles to be called at the line of scrimmage when we get possession of the ball again?
Very briefly, four stocks have suffered Financial Near Death Experiences, IMO:
HTM, BQI, DNN and JTX. Three have recovered and prospered due to cash tranfusions, the fourth is in recovery from its surgery, and may yet prosper. In spite of the carnage in the markets these stocks have vaulted by half, double and triple, the fourth suffering a 10% Stop Loss for an exit. To my way of thinking, picking the profits from these stocks is one way I have found to cope with this market. Obviously Financial Near Death Experiences wont always be the "Soup de jour" on our menu, but for now, those profits are tasty. I think stocks like this can be traded via Fast Stochastic Matrices, but offer a great way to buy as they bounce off their bottoms, and return to financial viability, even if only temporarily. The four FNDE [Financial Near Death Experience] patients have held true to form when it comes to technically scanning and filtering some of the 5K stocks out there for Listed rebound and reversal potentials, in that 3 of 4 have been profitable in both the ultra short term [ 15 min to 3 days], and the interval from 3 days to 3 weeks. As I track them further, I will know more about their behavior in the Intermediate term.
My current take on candidates like these are that they can be acquired when they drop back into the Bottom Section [ typically labelled "OVERSOLD" ] within a Full Stochastic Overlay. Right now DNN appears very close to this position.