Tuesday, March 06, 2007

Two Fer Tuesday

And no it's not happy hour down at the old watering hole - just a couple of stocks I surfaced using my famous filter (well in my mind anyway) - ATR + RSI. This time I added a twist and included one more criterion - the stock's close hit a 26 week high 10 days ago. You could make it 7 or 12 days ago but I settled on 10 for a simple reason - I wanted to see what it was doing just before the collapse - in other words was it already rolling over or rebounding from the "trader's action zone". If the former I didn't want it and if the latter I do want it. Or was it continuing to make new highs when the crash came? I definitely want that kind of stock. I found several candidates but these two caught my eye

  • AMMD

  • ACOR

These two met the criteria perfectly and also weren't crashing immediately afterwards.

This filter modified this way is not good for day to day activities because it is tailored to this set of market conditions. In fact I probably won't use it again. But I'm pretty sure I'm going to take an initial position in both of these selections at market open and I'll give the details tonight if I do. If I do take a shot I will set my stop at 4% below the buy price.

Just remember we might or might not have an up day today but we are not out of the woods yet so don't go crazy - but it might be a good time to start trying to take advantage of this opportunity in small steps.

1 comment:


Leave it to the market.