Monday, December 17, 2007
Swing Trades from the Nets
These articles describe the statistical probabilities of long positions on these equities, based on neural net projections, for the next 5-15 trading days. These are not holy grail methodologies, the road to easy street, or anything else. These projections are the result of screening for technically significant retracement and momentum patterns that have been further screened for value and bullish sector performance. In other words, the projections are for long positions.
For 12/17/2007:
$INDU $SPX $COMPQ
Monthly Momentum Negative Negative Negative
Weekly Momentum Positive Positive Positive
Daily Momentum Negative Negative Negative
Note: (OS) means oversold and (OB) means overbought. The value to price estimate (it is not a guarantee, only a cash flow based estimate) can be defined loosely as a multiplier of price. A number higher than one means the stock is undervalued using this model and a number less than one means the stock is overvalued.
Index and ETF I-shares Bullish Reversals
None
U.S. equities fell on lighter than normal volume Friday as traders basically walked away from buying as CPI numbers were slightly worse than pundits and analysts had feared. That increased the likelihood of no rate cut early next year, and bonds and stocks both sold off in unison.
Generic drugs (MYL, ALTU), software (CTXS), retail (BJ), internet service providers and networks (SINA, AKAM), financial services (FNM), renewable energy (AVR), semiconductor equipment (WFR), and aerospace and defense (DCO) all made the list today.
Sadly, only AKAM and DCO got to the final cut, but neither model made the cut on the win-loss ratio.
Here’s what the nets saw today:
Value/Price est. 7 day ATR %( 7 day ATR)/Close
Note (O): optionable
That is it for now. We are seemingly trading in a sideways channel in the indexes currently. We are still seeing set-ups in drug stocks, healthcare, defense, and software. We will have to wait for some better set-ups before putting new capital at risk. The best thing to do now is to wait patiently for better opportunities.
Take care,
DBB
