By the book, there's a lot to like about this signal. The strong adx, at 47, suggests little likelihood of bullish whipsaws. The fact that this bull signal comes after a one-day bear whipsaw reinforces that conclusion. The stock has been trending upward since Feb. 5.
trend | adx | psar | pps | macd | macd trend | sto | sto trend | |
---|---|---|---|---|---|---|---|---|
XRT $41.32 |
Yet, there are also grounds for caution.
The uptrend is old. A fine wine or whiskey may improve with age; a stock-market trend, rarely so. After so many weeks of soaring, XRT is overdue for a downward swoop.
The macd, although in bull mode, has been falling toward the zero-line since March 9, with the exception of one day.
The sto has been in overbought territory since Feb. 16, with a couple of dips below. A decisive fall into the neutral zone would be a signal, under my rules, to close the position.
You are here:
- Reversal
- $45.51, +10.1%
- $44.47, +7.6%
- $41.44, +0.3%
- Now $41.32
- $40.18, -2.8%
- $37.92, -8.2%
- $36.33, -12.1%
- $34.11, -17.5%
So, bottom line, I like it, and it makes me nervous. The price today has barely moved. I would want to see some movement before opening a directional position.
About the glance: The colors indicate the state of each signal.
- trend: green for up, red for down, yellow for sideways
- adx: green for above 30-up, red for 20-down, yellow 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.
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
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.
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