Monday, February 21, 2011


I've made a change to Morningline indicators line-up that eliminates overlaps with the Forex listing, replacing the EUR/USD and USD/JPY listings with UUP, an exchange-traded fund that tracks the U.S. dollar against a basket of currencies. UUP is based on the Deutsche Bank Long US Dollar Index, which is designed to replicate the performance of being long the U.S. Dollar against the following currencies: Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona and Swiss Franc.

I’ve also done a major reworking of the Watchlist to eliminate the total muddle that has grown between listings on the Watchlist and on the price channel analysis.

There are now three sections.

The first section, "From the price channel list", provides coverage of stocks that appear on the price channel analysis, which has a slower velocity than the technical tools used on the Watchlist. For this section, the price channel analysis is the senior strategy for stock picking. The Watchlist coverage allows a second opinion, or a fine-tuning of entry, or more rapid trading within a longer trend.

The second section, "Of interest", tracks stocks that I’m watching for a variety of reasons -- either I find them interesting or they are zombies lurching through my portfolio, the remnants of former trades gone bad. The "Diversification" sub-section tracks global exchange-traded funds, greatly expanded from its previous version.

The third section, "Earnings plays", is a selection of stocks that I have been tracking in anticipation of earnings surprises. I’m phasing that practice out as a primary strategy. Basically, the strategy of chasing earnings surprises hasn't worked consistently, and grand-pappy always said, "If it don't work, trash it and buy a new one."

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