More Cross Over Charts

GE printed three cross overs in the past three months - one was profitable, one wasn't and one was a break even.


Cross over 1 (X-over 1) was almost an instant failure. I don't like buying into a gap down that continues down as happened on 2/15. I would have passed this cross over as should you.

Cross over 2 (X-over 2) became profitable but then collapsed. That hanging man on 3/26 indicates an exit. This trade would have been break even at best.

The third cross over returned about 4.7% in 6 days (4/26 - 5/2). This is the kind of cross over that we are looking for constantly.

Finding cross overs is simple - you don't need any fancy software nor do you need any money involved. Just time. I hope that the readers of this BLog are familiar with stockcharts.com . If you are, good - if not - you should remedy that fault immediately.

Select a candle glance group and click on any of the charts in the group. Then click on the top most chart that appears from that entry. This leads you to sharp charts 2. The Stockcharts sharp charts 2 capability permits you to change everything from number of days, weeks, or months to types of moving averages to types of indicators. and then simply run a set of stocks through that chart looking for cross overs. It is tedious but the exercise does your mind a world of good and you might pick up on a lot of other potential entry conditions as well. And if you hit a great cross over such as ATVI you will be well paid for your efforts.


Again there are three cross overs shown on this chart. Number 1 is a gap up and while gap ups sometimes go on to higher and higher places most often they are an overreaction to some news event and sobriety soon hits the market place and they fail. This was that kind of gap up.

Number 2 was a bit better and actually gave you a piece of change before it failed at the end of February. But that failure was not a result of the stock but a result of the market (Feb 27th) so this would have been a good one to watch.

And sure enough number 3 came along and took ATVI to the sky. The tweezer top defines the sky in this instance and suggests a perfect time to take profits and exit the trade.

Really sharp readers will note that Philip's Set up is associated with each of these cross overs. And I just noticed that myself so it might be a good thing to look for as well. It won't occur with every cross over but when it does it might signify something special in the stock.

Our final exhibit is in the class of failed cross overs. Here is MOT


First - it's MOT. MOT is in the news all the time and the words - "failing company", "bad stock", "poor investment" are usually found in the article. But the reason why you shouldn't take this one is the same as discussed above on GE - there is a gap down open. And that cross following the cross over probably suggests caution. But even if you did take it and then had it gap down again on you the next day you could be assured that it would come back a bit because it is MOT and regardless of my feelings about the stock it is beloved by the funds. So your max loss might have been around 30 cents a share and that's not too bad.

The cross over method will yeild a lot of winners but you have to watch the entry and make sure that the stock wants to go up and isn't just fooling around.

Find the code for stockfetcher here.

And again - if anyone finds a consistent method to better this approach please share it with all of us. Thank you.

MOT - A Chart Only a Mother Could Love

Is MOT just another way of spelling toast? Notable Calls has an interesting article on MOT and if you have MOT in your portfolio it would appear, on a fundamental basis, that it is dead money.



Now when MOT finally bottoms then you might want to consider it again. And as we know - before they turn they usually stop going down.

There are a number of good articles on Notable Calls this morning.

Wrapping Turdsday

Wow! Was I ever wrong! And am I ever happy! What? Oh yeah, man! (Emeril doesn't have that phrase copywrit - at least not yet). (By the way his Garlic Lovers Spaghetti sauce is out of this world wowee!). 'nuff about that - back to the market.

As noted in an earlier post today AAPL led the market lower because of their silly 4 penny miss. Now I was thinking - what if we all got together - all the AAPL shareholders (I am not) and gave them 4 cents out of our own pockets - do you think that would help? It's a thought.

In a later post I asked the musical question - whither the Q's next week and if you all answered up, up, and away - you might be right. In the past 6 months there has only been one down week followed by a down week - the rest have been up weeks and today was a super blow-off if I've ever seen one. A lot of crap stocks were sold today along with AAPL.

Day three of the GOOG short squeeze vigil passed without incident and I'm beginning to receive dispatches from the front - most of them saying things like - what the hell and are you kidding and who is the Jimmy Crack Corn Pone anyway? To which I can only reply - Jimmy said it - I reported it - some people believed it - and I don't care. Or in the words of my dear old Ma - Do Dah Do Dah Day.

I dumped Chiquita Banana today based on the fact that it didn't seem to want to go anywhere but held RX because I'm stupid. Also held GLW and SYMC and CRVL and added to the pain with S (Sprint). Why Sprint? Simple I read my Notable Calls this morning and Sprint is troughing (much like MOT I might add) and they are probably going to go up once all of this shake-out is over.

I might take a position in MOT tomorrow. And I heard about this little guy the other day, GTXI, that has something or other coming out of trials and the news is looking good. I might add a small bite of that to the plate as well.

Tomorrow is options expiry day and contrary to popular belief it is usually a pretty calm day. I expect a moderate to mild rally tomorrow.

And that is based on the up/down ratio printing 30% and the new 20 day high/low ratio printing 38% (they both went the same way for a change) and the fact that the VIX has climbed back up within the 5% range and the fact that every major index printed red in the final hour and GS, the proxy for the stock market of the 22nd century, printed a doji. I would like to see it go down again but trust me - everybody is in a hole and there is only one way out - up.

The magic coin says ... tails - bear market - we'll see coin, we'll see.

Marlyn is now 3 - 4 and 1 and the coin is 3 - 4 and 1. At least we disagree about tomorrow.