ABK Watch

Ambac Financial Group Inc. (ABK) has moved to bull phase on the parabolic sar and Person's Proprietary Signal, as the macd creeps up toward the zero line for a seventh trading day.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
ABK $1.20

ABK is the second-largest bond insurer in the United States.

The signal switches kicked in Friday on a huge, 26% price increase that brought up to mid-way in the May 18 decline.

ABK is one of the walking wounded from the collapse of capitalist finance in 2007/2008.

Three years ago the stock was trading for more than $90. Now it's down to $1.20, and in March was trading as low as 51¢.

Reversal Levels

• $2.22, +85.0%
• $1.78, +48.3%
• $1.58, +31.7%
• $1.48, +23.3%
• $1.20 <== You are here.
  
• $0.83, -30.8%

As is always the case with low-priced stocks, the percentage steps between resistance levels are huge. It's like instant leverage on shares, without the need for options or other fancy instruments. It's important to remember, of course, that leverage works both ways.

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The Great Reflation: How Investors Can Profit From the New World of Money OK. The credit bubble burst. Housing, burst. Shockwaves reverberated. Markets collapsed. What lies ahead as we remerge from the wreckage.

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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
• 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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Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.