Monday, June 14, 2010

AOD Watch

The Alpine Total Dynamic Dividend Fund (AOD) is trading up more than a percent and a half over the prior close on volume that will be double Friday's by the time the markets close.
trendadxpsarppsmacdmacd
trend
stosto
trend
AOD $7.03


The slight gap up at today's open pushed the price over the 20-day simple moving average, and above it has remained all day long to the present point.

AOD is a dividend play, paying more than 20% a year in monthly installments. But it also is a capital gains (losses!) play, showing a high degree of volatility, both because of the high yield and because of currency exchange risk resulting from heavy foreign exposure.

The three-month chart, for example, shows a 35% capital decline in the span of a bit more than a month.

Reversal Levels
  • $8.63, +22.8%
  • $7.30, +3.8%
  • $7.18, +2.1%
  • $7.03 <== You are here.
  • $6.42, -8.7%

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.


Disclaimer
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.
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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