GE Watch

General Electric Co. (GE) is showing a bull signal on the parabolic sar. Actually, it kicked in yesterday, and I'll say up front that this signal breaks a rule, which is why I'm a day late in writing about it.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
GE $18.89

The rule is the one about avoiding earnings. GE releases before the market opens on Friday.

Otherwise, there is so much to like about this stock.

• All signals are aligned directionally to support a bull trend.
• The average directional index is a strong 48.
• And a bull trade is with a trend that has been in place since early March.

Now, one strategy would be to wait until Friday to buy. That would be prudent. On the other hand, this close to the earnings announcement, I suspect that any surprise that's going to happen has happened. GE is so closely followed that I would be shocked if Friday's results weren't in line with analyst expectations.

Whether today or Friday, I would trade it directionally, either shares, or an outright call purchase, or a bull vertical spread of some sort. Most likely I would go with the spread, because while I see the likelihood of a rise, I think there's enough congestion that it'll be a tough slog.

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Buy--DON'T Hold: Investing with ETFs Using Relative Strength to Increase Returns with Less Risk

Financial consultant Leslie Masonson describes a strategy for actively trading exchange-traded funds.

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You are here:

• Reversal
• $20.98, +11.1%
• $19.30, +2.2%
• $19.06, +0.9%
• Now $18.89
• Reversal
• $18.25, -3.4%
• $17.80, -5.8%

This signal will be followed in the daily Watchlist, which is posted beginning around 2:45 p.m. Eastern. Look for it at www.timbovee.com.

Abbreviations:
psar - Parabolic Stop and Reverse
adx - Average Directional Index
pps - Person's Proprietary Signal
ma20 - 20-day moving average
macd - Moving Average Convergence-Divergence
mfi - Money Flow Index
sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
• adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.

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