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?


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

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.


Only time will tell us what will come.