Everything is down -- no surprise, given the pervasive downwardness of stocks this morning.
So, for thoughtful and experienced traders who prefer a lone wolf approach to running with the pack, the basic question is: Panic now, or panic later?
May options:
- CIEN, down 4.1%, is trading in Friday's range, so it's not yet a breakdown.
- QQQQ, down 2.4%, has broken down below the 20-day moving average and is trading at a level last seen in early April.
- GE, down 1.8%, is sticking just below the ma20, within Friday's range. No breakdown here.
- UNP, down 1.3%, same as GE.
The CIEN, GE and UNP are candidates for adjustment, although that costs money.
QQQQ is a different story, since the breakdown was so severe. I'll need to assess whether to take the loss to buy a protective put. (Although that's like locking the meadhall once thieves have stolen all your fine Mountain Meadows Mead.)
(Not a product placement; I just love this Westwood, Calif. craft mead-maker's products.)
Martin Pring's detailed deconstruction of the economic cycle: What sorts stocks to look for at each stage of the recovery. A masterful analysis.
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 trading? Here's a look at How to Become a Private Trader.
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