Tuesday, May 08, 2007

Some Cross Overs

Here is a double cross -


I have no idea of the significance of this but I don't think it is good. HANS is an extremely volatile stock but this is ridiculous. I'm going to want to watch this for a bit to see which way it goes.

Here is HANS on a 3-day 30-minute version.


I'm showing you this because there is a cross over on the second day of this chart in the 2:30 bar. This crossover follows through into the next hour - but you know my rule - if you buy on the minute charts you should sell on the minute charts and not hold overnight. That would have been a very nice profit even so. You would have purchased at 38.40 and sold around 40.40 and 2 bucks in an hours nets out to a whole bunch annualized. I'm a purist with this indicator - the third bar of the second day is not a cross over because it didn't close above the averages. And if you made a mistake and took it as a cross over with your stop below the open of the that bar you would have been stopped out a bit later in the day.

Another chart I wanted to show you is RIMM.

There's no deep lesson here - just wanted to show you how the cross over works for expensive stocks too.

Still another is AAPL -


The cross over was back on 4/23 - a purchase on 4/24 would have reaped a nice profit over the next 10 days.

And here is MSFT -


The crossover came on 4/12. Note how the stock never dipped below that open and also note that the averages were in correct order (4 over 8 over 21) at this cross over. This too would have been a nice profit - at least as nice as they get with MSFT.

And finally the last of the three amigos, the final stooge - GOOG -


I'm showing GOOG to demonstrate the anti-cross - the reverse cross over. That occurred on 4/30. It was negated on 5/03 by a normal cross and that was negated by yet another anti-cross on 05/07. Stay tuned - which way do you think GOOG is going to go?

4 comments:

Woodshedder said...

Marlyn, for the newbies here, would you explain the crossover, and if you don't mind, also the stockfetcher code for it? Thanks!

Anonymous said...

Hi, I look at APPL on 4/24 and find that if you buy on that day open and make a stop on the previous day low, it will get sell out. I am wondering if we should lower the stop a little more. May be the huge spread happened on the first 10 min of market open?

Marlyn Trades said...

Woodshedder the code is in this post
http://filteringwallstreet.blogspot.com/2007/05/cross-over-re-test.html

Friday - May 4th

Anon - you are correct - since I mostly set mental stops that wouldn't have caught me - a physical stop should probably be set to some value related to the ATR which would have been around a 1.50 - 1.80 on that date. That would keep you in the trade and not cause too much damage if AAPL goes down. After a day or two you could move the stop up to break even and stayed in the trade.

QUALITY STOCKS UNDER 5 DOLLARS said...

Only time will tell us what will come.