Friday, October 01, 2010
Short Form Buffalo Trader Bullish Reversal Report 10/01/2010
For the time being, this will be the new format, showing only the basic U.S. stock index momentum, the bullish reversals in ETFs and bullish reversals in stocks. I will periodically comment on major issues at critical times, but during the time I am attempting to build the algorithm required to download signals from almost 1300 stocks that I have built models for using NeuroShell Day Trader Professional, this is what I will leave you with. Most who have commented (and I have received, thankfully lots of comments with great appreciation to readers) want to see the reversals and not necessarily trade signals I generate. That makes life simpler for me, though at some point I will discuss methodology for building your own models. For now, I will present the data with little commentary. I will always respond to readers’ comments. This blog will steadily evolve as the time I have and the technology I use evolves. Thanks for your patience during this transition.
For 10/01//2010:
$INDU $SPX $COMPQ $RUT
Monthly Momentum Pos Pos Pos Pos
Weekly Momentum Pos Pos Pos Pos
Daily Momentum Neg Neg Neg Pos
N means neutral, Neg means negative, Pos means positive (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 (Note: to look up quotes for the Dow Indexes (starting with DJ or DW, add a dollar sign. No dollar sign is required for the ETFs beginning with other letters.) Today’s list includes only those ETFs with a 50-day moving average of daily volume greater than 100,000 shares:
| Company | Symbol | Exch. | Industry | Sector |
| iPath DJCopper | JJC | xA | ETFs (Commdty)\TotRtn) | ETFs |
| ProShrsShort500 | SH | xA | ETFs (Short) | ETFs |
| ProshrsUlSht500 | SDS | xA | ETFs (Short) | ETFs |
| ProShrsUlShtRE | SRS | xA | ETFs (Short) | ETFs |
| ProShrsUlShtSmc | SSG | xA | ETFs (Short) | ETFs |
| ProShrsUlShtTch | REW | xA | ETFs (Short) | ETFs |
| Direxion LgCpBr | BGZ | xN | ETFs (Short) | ETFs |
| PwrShrsDBGldSht | DZZ | N | ETFs (Short) | ETFs |
| ProShrsUlShS500 | SPXU | xN | ETFs (Short) | ETFs |
| Direxion DvBr3x | DPK | xN | ETFs (Short) | ETFs |
| Direxion RelEst | DRV | xN | ETFs (Short) | ETFs |
The stocks listed below are ranked by pattern bullish reversals based on a momentum indicator. Each stock by sector is listed with the cheapest stocks on a near-free-cash-flow value/price basis at the top, and more expensive stocks on that basis farther down each sector list (they are listed alphabetically):
| Company | Symbol | Exch. | Industry | Sector |
| MuniYld NY Fund | MYN | N | Market (ClsdEndFndsDom) | Market |
Stocks that almost passed the neural net screens but just missed: None
Note: The cracks in the most recent rally began to show again yesterday as volume increases as sellers pressed forward. There were very few bullish reversals, and the one instrument that made the stock list was a closed end muni-bond fund. The shorts are lining up in the ultra-short and short ETFs, and the fear trade is obviously alive with the closed end fund.
Patience is again required as we move into the weekend and next week. If sellers return in greater numbers, there should be many set-ups coming ahead. I will comment on EURUSD this weekend. I will be away at a funeral for part of the time, but I will do my best to get some training regarding time symmetry and price symmetry in blog.
Take care,
DBB
