Today’s task: choose a stock to buy with the money that will be rejoining cash tomorrow morning (actually, it has already arrived in my account).Screen:
- Schwab Equity Rating = A, B, C, or D (but not F)
- MACD = Recent cross above signal line
- Price compared with 50-day moving average = Moderately above
- Price compared with 10-day moving average = Moderately above
- Parabolic SAR = Bullish
|ADS||Alliance Data Systems||35%||25%||35||+0.06%||12%||Hold|
|AWI||Armstrong World Industries||30%||2%||24||+0.03%||10%||Hold|
|CALD||Callidus Software||70%||85%||16||+0.09%||3%||Hold||Spinning top|
|DKS||Dick's Sporting Goods||52%||45%||20||+0.05%||6%||Hold||High wave|
|ELMG||EMS Technologies||34%||5%||14||+0.59%||6%||Hold||Spinning top|
|KR||The Kroger Co.||4%||8%||33||+0.04%||5%||Avoid||Long white|
|LINC||Lincoln Educational Svcs||−36%||−4%||12||+0.39%||8%||Buy||Confirmed|
|MPX||Marine Products Corp.||−3%||−15%||14||+0.17%||7%||Hold||Spinning top|
|MCRS||MICROS Systems, Inc.||57%||6%||24||+0.26%||5%||Hold|
|HK||Petrohawk Energy Corp.||1%||−18%||18||+0.09%||6%||Avoid||Long white|
|SPN||Superior Energy Svcs||84%||35%||15||+0.27%||8%||Hold|
|TLEO||Taleo Corp.||34%||−5%||14||+0.03%||7%||Sell?||Doji star|
|WYNN||Wynn Resorts, Ltd.||93%||29%||25||+0.25%||6%||Hold||Spinning top|
For “Yearly gain”, the Hold value is how much I would have gotten if I bought the stock a year ago and just held it; the MACD value is how much I would have gotten if I spent the last year buying the stock whenever MACD(10,30,9) turned positive and selling whenever it turned negative. Green means MACD yields *more* than just holding the stock; orange means at least half as much; red for even less. The purpose of this indicator is to tell me how effective MACD (and therefore PPO) is as a predictor for when this stock will produce gains.
ADX is Wilder’s Average Directional Index or DMI(14). Green is for values between 25 and 35 (“strong trend”), orange for 15-25 (“weak trend”), red for others. Schwab says 25 means “buy”; Craig Ferguson says 25-30 is good while 50 means the trend will end soon.
PPO is the Percentage Price Oscillator or PPO(10,30,9). Positive values indicate a rising trend in recent days. To avoid bad stuff that has happened in the past, I don’t buy stocks whose PPO is less than +0.10%. I have not defined an orange range for this indicator.
pSAR is the Parabolic stop & reverse calculation. I use pSAR(0.2,0.2) for my stop price, so its value is how much risk I would be taking if I choose this stock to buy. It’s hard to know what colours are appropriate here. In recent days I have done well with ENTG and TNA, which had 6% stops, so now I’m thinking that maybe 7% could be reasonable. Most 2% stocks have not done well except CBS which did great. Most 3% and 4% recent stocks did poorly, but troubles in the Mideast interfered. For now I’m using orange for 2%, 3%, 4%, and 7%, green for 5% and 6, red for others.
Trend indicates whether AmericanBulls thinks I should own this stock or not, based on their automated analysis of its candlestick chart. Their values are Wait, Buy-if, Buy-confirmed, Hold, Sell-if, and Sell-confirmed. Sign is today’s candlestick pattern if they recognize one. I treat “Confirmed” as a sign since they get it from the chart.
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Clearly, PCLN is the winner. It has no red indicators and only one orange. The runner-up would be GCO because its only red indicator is from AmericanBulls, which I’ve just started using and I don’t know yet how much trust to put in them. CALD, DKS, DPZ, and PII have only a single red indicator which might improve in a day or two, while CROX, MCRS, and WYNN are not going to get better any time soon. LINC is an interesting case: so far I have not tried purchasing any stock that has lost value overall for the last 12 months, but if ADX and pSAR improve then this could be a candidate.I have put in my purchase order for PCLN, with a 6% stop.