MDZ psar bear signal

MDS Co. (MDZ) isn't one of the household names that regularly pops up on my scans. MDZ showed a psar bear signal today with a sharp drop unmotivated by any news report.

MDZ provides materials and services to companies that are developing drugs and therapies in medicine. I think of it as a research infrastructure company.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
MDZ $8.27

The stock has traversed 3.2% high to low so far today with volume over the past week running three times and more the normal level.


Earnings were released March 16, and while the 36¢ loss was greater than analysts expectations, 10 calendar days is a bit long for a price reaction.

The stock trended upward from Feb. 1 to Feb. 19, and since then had been running sideways until Monday, when it moved sharply higher, peaked the next day and then pulled back. Today's decline is part of that three-day downtrend.

The decline today keeps the price within the wide range set in Monday's breakout. But even without news or published rumors, under these circumstances I suspect a news surprise lurking in some dark corner, saliva dripping from its fangs.

The adx, at 35, is well within the zone where whipsaw sare less common, and the bear signal in the psar is well supported by my other signallers.

You are here:

• Reversal
• $8.65, +4.6%
• Now $8.27
• Reversal
• $7.79, -5.8%
• $7.50, -9.3%
• $7.30, -11.7%

Technically, this signal meets all of my criteria. It's the mystery that bothers my. I often quote Master Yoda's younger brother, the trader Sam Yoda, who often says, generally over a cold beer at the local brew-pub, "Ask not. Trade or trade not. There is no ask."

In the case of MDZ, I'm askin'.

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