SWKS Watch

Industrial electronics company Skyworks Solutions Inc. (SWKS) has gently moved to bear phase on the fast stochastic, on the second day of declining prices and with the macd moving through bull territory down toward the zero line and beardom.

	trend	sto	sto zone	pps	psar	macd	macd trend	ma20	ma200
SWKS $18.60

The fast stochastic is notoriously fickle, and the shallowness of its dip from overbought into neutrality means that it could easily reverse during intraday trading. I don't consider this early bear signal to be a done deal.

SWKS moved into bull phase across the board in late August and has since then pushed up 6.2% toward its July high of $19.29.

It remains about 4% below that level, and so the stock counts as rangebound in the absence of a higher high to mark an uptrend.

On the Person's chart, the price is trading right above the midline and has not yet mounted a serious challenge to the weekly upper pivot.

Person's Table

	pps	pps open	upper pivot	lower pivot
SWKS $18.60		$17.50 aug27	$19.38 +4.2%	$17.96 -3.4%

The price has room to move in either direction.

Reversal Levels

• $19.29, +3.7% (high)
• $18.97, +2.0% (swing high)
• $18.60 <== You are here.
• $17.92, -3.6% (20-day ma)
• $16.54, -11.1% (swing low)
• $15.75, -15.3% (200-day ma)

Bottom line: The fast stochastic bear signal is pretty sketchy. It would be nice to have some confirmation before liquidating a bull position -- a decline on volume, for example, or an additional bear signal. The 20-day moving average is of little help, because crossing that level would wip out the profits from the bull phase.

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:

• pps - Person's Proprietary Signal.
• psar - Parabolic Stop and Reverse
• ma20 - 20-day moving average
• ma200 - 200-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.
• sto: green for bull, red for bear.
• sto zone: green for overbought (80+), red for oversold (20-), yellow for neutral zone
• psar, pps, macd: green for bull mode, red for bear.
• macd trend: green for rising, yellow for sideways, red for falling.
neutral.
• ma20, ma200: green for above the average, red for below the average, yellow for on the average.