Market Watch for the week of 7/27/2009

[billhart22]

Good lord - look at my signature, I'm so sucked in - there's only two stocks in there trading over $10.

It's good for you! That is a shitload of stocks though. I wish I had that problem, but I am working on it. The most I have had at one given time this year was six or seven.

[imromo24]

People die from playing World of Warcraft and Tour of Duty. I could die from this, so be careful Tree - make sure you eat and sleep.

LOL, Dr. your on fire! (figuratively)

[imromo24]

Then they signed Kid Rock for a beer. It actually debuted at his detroit concert last weekend, so it looks to me like a dump and pump. I just want it off my books.

i don't know if they signed KR but I was at the concert and the line for his beer was Loooooong, longer than the lines for anyother beer stand (right place to sell kid rock beer of course though)

[thetree]

Yeah you have the jist of it dave. It isnt as time consuming as it looks. Luckily TDA has a wizard that spits out the formulas for you. I just need some ideas. It's really hard coming up with things that i think will work in most circumstances. For example buy on high volume doesnt work because it can be going down so I have to qualify it by saying AND price on the 30min higher than 3 bars ago. Its so hard because an hour and a half in pennies is a lifetime (in a serious run) but if it was 5 or 10 minute charts it could just be a small spike and not a real trend, or it might not be moving fast enough to trigger in that case.
From the short time ive been doing this, it seems that high volume and a rising price are always a good buy, but with the volitility of these stocks, what would be a good sign of a reversal?
And dave, do you have any idea how these types of programs handle the volume? If i tell it to buy on a day when the volume is higher than yesterday, how does it know before the end of the day? does it just have a formula of some kind that breaks the day down into smaller increments and judges by the volume to that point?

[thetree]

not sure if this works without an account but : http://www.tdameritrade.com/Strategy...elp.html?p=fbw

[Dr. Dave]

Yeah you have the jist of it dave. It isnt as time consuming as it looks. Luckily TDA has a wizard that spits out the formulas for you. I just need some ideas. It's really hard coming up with things that i think will work in most circumstances. For example buy on high volume doesnt work because it can be going down so I have to qualify it by saying AND price on the 30min higher than 3 bars ago. Its so hard because an hour and a half in pennies is a lifetime (in a serious run) but if it was 5 or 10 minute charts it could just be a small spike and not a real trend, or it might not be moving fast enough to trigger in that case.
From the short time ive been doing this, it seems that high volume and a rising price are always a good buy, but with the volitility of these stocks, what would be a good sign of a reversal?
And dave, do you have any idea how these types of programs handle the volume? If i tell it to buy on a day when the volume is higher than yesterday, how does it know before the end of the day? does it just have a formula of some kind that breaks the day down into smaller increments and judges by the volume to that point?

All those languages are program specific - so you'll have to dig thru the manuals or if you get stuck, email the broker. Usually though to tell if the volume is up for the day, they just multiply by the current time (ie. minutes or whatever you are into the trading day, and divide by the total time for that period - ie. if minutes, the number of minutes in the day)... the danger you run into is the large amount of trading that occurs at the beginning and end of the day. I'm sure good programs can partition it out.

Anyway, doing this stuff with pennies is a valiant effort!

[Dr. Dave]

i don't know if they signed KR but I was at the concert and the line for his beer was Loooooong, longer than the lines for anyother beer stand (right place to sell kid rock beer of course though)

Did you try it? It's a tough call for this stock - its been beaten down a lot, but if traders get happy with the beer outcome, it could have a decent run up. I want to remove at least 3/4 of what I have though.

[Dr. Dave]

It's good for you! That is a shitload of stocks though. I wish I had that problem, but I am working on it. The most I have had at one given time this year was six or seven.

I think managing 6 should be the limit - get's too hard with the juggling act. The DRYS and UUP in my sig are actually option trades gone bad - those don't actually expire for quite sometime, but are basically worthless. I should have cashed out - I got them before I decided (or figured out with my sleep schedule) that very short term is the way to go for me.

[dread]

Hey, Bill and the gang, hope all is going well!!!

Here are some pennies that some of you may want to check out, or watch.

SKVI

BCKR

BEDA

HTDS

GBOE

And Bill's favorite from last week, CBIS, I watched this go from .07 all the way to a dollar, volume was iffy on most days, so I did not touch it.
Kicking myself for not jumping on the dope stock!!! Beta is high!!

Not sure how things are going here, have not even had time to do any lurking. I hope some of these look good, have not had time to dig around on any of them. Take it easy everyone!!!

[Dr. Dave]

Yeah you have the jist of it dave. It isnt as time consuming as it looks. Luckily TDA has a wizard that spits out the formulas for you. I just need some ideas. It's really hard coming up with things that i think will work in most circumstances. For example buy on high volume doesnt work because it can be going down so I have to qualify it by saying AND price on the 30min higher than 3 bars ago. Its so hard because an hour and a half in pennies is a lifetime (in a serious run) but if it was 5 or 10 minute charts it could just be a small spike and not a real trend, or it might not be moving fast enough to trigger in that case.
From the short time ive been doing this, it seems that high volume and a rising price are always a good buy, but with the volitility of these stocks, what would be a good sign of a reversal?
And dave, do you have any idea how these types of programs handle the volume? If i tell it to buy on a day when the volume is higher than yesterday, how does it know before the end of the day? does it just have a formula of some kind that breaks the day down into smaller increments and judges by the volume to that point?

Here's one thing that will help - go to www.ddmachine.com or somewhere where you can get a list of tickers - then do your backtest analysis on time periods after these things have fallen over. Because they are so volatile, you may even want to cut out the flat areas too. Then after you have some criteria set up, wait a month or so, and try it out on some new stocks that hit the radar. You could maybe put in a genearal overall filter to make sure a longer term moving average (say 100-150 EMA) is moving upward or flat, and the price is above - then add your stuff to that. This will require you to put in the dates for each ticker for a run, but it will help.