Tuesday, April 6, 2010

KRE Watch

The regional banking exchange-traded fund KRE is showing a Parabolic SAR bull signal this morning, back up by a matching pps signal and a macd rising toward the zero-line.
trendadxpsarppsmacdmacd
trend
stosto
trend
KRE $27.25

The signal matches the trend, and the adx is at 42, meaning whipsaws are unlikely in an uptrend.

You are here:
  • Reversal
    • $34.20, 25.5%
    • $29.34, 7.7%
    • $27.32, 0.3%
  • Now $27.25
  • Reversal
    • $26.01, -4.6%
    • $24.33, -10.7%
    • $22.38, -17.9%
The present level is within an area of thick congestion that ran through Novembr and December 2008. That argues against easy progess to the upside.

On the other hand, the reversal levels are spaced out, so there may be some money to be paid on a directional bull play.





Stalking the Black Swan: Research and Decision Making in a World of Extreme Volatility
Market analyst Kenneth Posner creates a new framework for managing extreme risk based on lessons learned in the recent collapse of capitalist finance.




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.


New to Private Trader? Check out the Reader's Guide.

New to private trading? Here's a look at How to Become a Private Trader.

No comments:

Post a Comment