EWZuber
1,373 posts
msg #28049
- Ignore EWZuber |
8/25/2003 2:23:47 PM
If you want to vastly increase the sucess rate of your short positions check to make sure that your stock is overbought on weekly charts also and preferably up against some kind of resistance with poor or deteriorating fundamentals. Notice that IFSIA, ICST are oversold and crossing over to start a new longer term accumulation phase on weekly charts. SMTC and UMC also have fast line crossovers to continue accumulation.
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TheRumpledOne
6,411 posts
msg #28050
- Ignore TheRumpledOne |
8/25/2003 2:30:09 PM
rrochon
use fetcher? what the secret? Not sure what you are asking...
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rrochon
117 posts
msg #28051
- Ignore rrochon |
8/25/2003 2:30:48 PM
Thanks Zuber. That makes good sense. How would one add these limitations to the filter?
Dick
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rrochon
117 posts
msg #28054
- Ignore rrochon |
8/25/2003 4:25:12 PM
Rumple:
I was referring to posting a filter with
, so it was a link to the scanner. When I tried to write the filter this way it did not turn colors, so I assumed that it was not a link.
That's what I was asking how to do it.
Dick
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EWZuber
1,373 posts
msg #28056
- Ignore EWZuber |
8/25/2003 5:12:04 PM
Try this one:
SHOW STOCKS WHERE WEEKLY SLOW STOCHASTICS(5,3)%K GREATER THAN 75 AND CLOSE IS BELOW MA(200) AND SLOW STOCHASTICS(5,3)%K GREATER THAN 75 AND PRICE IS BETWEEN 1 AND 15 AND VOLUME(90) IS GREATER THAN 100,000.
I like to use the 200 DMA for this because technicians often stay away from buying stocks that are so weak that they are below their 200 DMA. This is even more true in a bullish market like we have now.
I ran this screen earlier today and got these 3 returns;
--CAMD... this one woud have worked out OK so far. Notice it has bounced down off of resistance @ the 200 DMA and also trendline resistance. Last several quarters have been losses although improving slightly.
--THC...This one bounced down today from resistance formed on a cycle low on 6/13/03. Buying volume has been increasing on this one so I think I would be very careful, using intraday chart to monitor the stock before entering a short position.
--IBC...This bounced down nicely from resistance at the 200 DMA Friday. Notice earnings were a greater loss last quarter, another good indication.
Remember if you short a stock but miss the perfect entry point, within about 2% of resistance, before you take that position you must be willing to let that position go against you at least until it retests resistance again. So if you open the short 5% below resistance, you stand to possibly have your position go against you that much and still be a viable play. The problem with this is that if it does violate resistance and move higher you can really get nailed cause you're already down 5% when you recieved the first indication that this may not work. If you let it move up say another 2% before covering, then you're down 7% + commissions. Thats why it is so important to carefully pick your entry points. I don't chase them.
Also check out the fundamentals. Find out what the latest growth & earnings projections are and check the next earnings date. Also I believe there may be liabilities involved when shorting a stock that pays dividends. Maybe someone else can confirm this. Hope this helps.
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