Steckler's Star Studded Stock Picks

[Runner]

Does anyone use the RSI indicator? Here is an example of CKCM and the RSI. I’ve also added the sub sector in the chart with a 9 day moving average. I wonder if this group is getting ready to pop up. It does look as if CKCM’s relative strength is in tune with the sub group.

[Runner]

Ok last example. Here we have ALY. It also appears to be moving in lock step with the sub group. Both sub group and stock pop 9 MA

[Runner]

Heck I’m a wondering if this RSI thing has any merit in relationship to the group. I’ve never used the RSI before and playing around with it does show some positive things. I guess many indicators do until they don’t.

[DSteckler]

Ckcm

Dave, I'm looking at CKCM as a possible long. What you think might be a possible upside target?

On the weekly chart you can see a rising trend channel with resistance around 35.

[DSteckler]

Ckcm - Dmi

Dave, how would you interrupt this ADX indicator. Purple line is the +D and Red is the –D? This was taken from CKCM

The +DI and -DI tell you the direction of the trend. When +DI > -DI, the trend is higher; when +DI < -DI, the trend is lower. You can also look at the trend of the DI's themselves for a clue as to future direction. For example, if +DI > -DI but the former is heading lower and the latter is heading higher, the trend is probably losing strength and a trend reversal may be in the works.

[Runner]

Hey Dave thanks for the explanation. I thought it was a positive when +D crossed –D. I bet some even use this in part of their trading systems. I’ll admit I’ve never used the ADX indicator. Playing with the RSI indicator is showing me some positive things. What is your take on the RSI as a primary indicator to use with charting?

[DSteckler]

Does anyone use the RSI indicator? Here is an example of CKCM and the RSI. I’ve also added the sub sector in the chart with a 9 day moving average. I wonder if this group is getting ready to pop up. It does look as if CKCM’s relative strength is in tune with the sub group.

Runner, don't confuse RS with RSI. The Relative Strength Index (RSI) indicator is a momentum indicator that compares the size of recent gains to recent losses in an attempt to determine overbought and oversold conditions of a stock. Relative Strength is a measure of price trend that indicates how a stock is performing relative to other stocks in its industry or an index.

[Runner]

{{{Runner, don't confuse RS with RSI. The Relative Strength Index (RSI) indicator is a momentum indicator that compares the size of recent gains to recent losses in an attempt to determine overbought and oversold conditions of a stock. Relative Strength is a measure of price trend that indicates how a stock is performing relative to other stocks in its industry or an index.}}}

I got it Dave. I was thinking it would make sense to have both sector RS and the stocks RSI moving together. The example showed the sector peek about the same time as the stocks RSI. I’ve not used this in the past and see some merit in its function.

[DSteckler]

<< What is your take on the RSI as a primary indicator to use with charting? >>

RSI is most useful during non-trending conditions. If you use it as a primary indicator, you'll be using it during both non-trending and trending conditions, meaning you'll be using it when its accuracy is lower.

In other words, don't use it as a primary indicator.

[DSteckler]

<< I was thinking it would make sense to have both sector RS and the stocks RSI moving together. >>

Frequently, they move opposite each other.

[Runner]

Ok, so when trending markets occur do you focus on ADX ?

[DSteckler]

In trending conditions you want to concentrate on trending indicators like moving averages and MACD. ADX isn't a trending indicator; it measures the strength of a trend or a lack thereof.

[DSteckler]

A few to watch tomorrow

WFT - nice bounce off the 50DMA on Thursday. Volume picking up. Estimates for the next two quarters are up 72.88% and 62.50% respectively, YOY.

SEPR - symmetrical triangle.

CNXT - held a test of the 50DMA but it needs to close the gaps from the cluster island reversal (1/11 - 2/6).

SMSC - rising wedge pattern and the Volume Flow Indicator went bearish on Friday. Support line is around 30.60.

LIFC - very low ADX (12.04) and improving daily technical indicators suggest the next move is higher. Estimates for the next two quarters are up 175% and 57.14% respectively, YOY. ERG = 95. A big negative is that %A/D = -46.3%, indicating the stock is or has been under distribution.

LMS - huge down day on Thursday, tepid recovery (if you can call it that) on Friday. Watch for a short entry opportunity.

[DSteckler]

Float &lt; 7 million, ERG &gt; 250

BTUI - looks like it sold off after earnings releases, making a big bearish engulfing bar on Friday. A close below the 20-day EMA should send it down to the 50DMA.

BOOM - pulled back to the 20-week EMA and held. Still a lot of downward pressure on the stock so caveat emptor.

TAYD - finally broke out, albeit only 50% of ADV. Naturally, I no longer own it. Grrr..........

GROW - beautiful five wave up - three wave down pattern. Pulled back to 50% of the impulse wave and stalled Friday at the 20-day EMA.

[DSteckler]

NVAX getting ready?

Trading slightly higher premarket; may be getting ready to challenge the 60-day high.