ParkTwain's Parlor

[RL]

Park no particular reason for picking GHM It was on the dart board. Also know the vice pres. James Lines one of the best people you will ever meet In your life. His father and I very good friends played a lot of golf together.

BRCM trades intraday above 50.00 today. Technicals strengthening all this week. Close today above 50.00 with followthrough tomorrow triggers buy. No points of serious overhead resistance for another 50 points of upside! This is not my preferred type of play, but that huge headroom gets my attention.

http://finance.yahoo.com/q/bc?s=BRCM&t=5y&l=on&z=m&q=l&c=

TRLG and TRGL:

Correct answer: TRLG is breaking out today, so perhaps TRGL is the beneficiary.

[noshadyldy]

TRLG and TRGL are each up more than 11% intraday today. "Fat finger" order entry at woirk?

Ahahahahahhahaaaaa!

TRLG and TRGL are each up more than 11% intraday today. "Fat finger" order entry at woirk?

[Websman]

Breakout happening in OXPS today! ROCK AND ROLL!

great job! I need a pullback. lol

OXPS 6-mo chart including BBands width plot:

http://stockcharts.com/def/servlet/SC.web?c=OXPS,uu[h,a]daolyyay[dc][pb50!b200][vc60][iUb14!Lyb20,2.0]&pref=G
(paste this entire URL into your browser URL field)

Notice how low the BB width line went before today's breakout.

Tell me you bought below 25.00, friends!

Breakout happening in OXPS today! ROCK AND ROLL!

[Websman]

Park dude, after seeing how well you did in 2005, I'm going to be watching you close. Maybe you'll rub off on me some.

Very glad to see the publicity! ROCK AND ROLL! I've got a $20K position in OXPS. Been a sleepy stock during 2nd half of Dec., but I watch it like a hawk.

[Lyehopper]

After today's bullish market action that started at 2.00 pm, the DJI, Naz, and S&P500 are each within 1 to 2 days striking distance of 52-week highs. ROCK AND ROLL in 2006!

Hey Park.... The new guy (Dave) likes OXPS too dude.

After today's bullish market action that started at 2.00 pm, the DJI, Naz, and S&P500 are each within 1 to 2 days striking distance of 52-week highs. ROCK AND ROLL in 2006!

50 Reasons why (futures) traders lose money:

http://www.zaner.com/education/top_50.asp

Hi Gatorman,

No I don't use the MSN stock screener in the way that you mention. I use it primarily to find stocks whose current pps is no more than x% below their 52-week high price, and I usually set 'x' to 5%. In a strong overall market, there will be many candidates returned from a setting of 5%, so I might set it to 3% just to give me a more manageable list of stocks to consider for that iteration of my research. I also limit this query to stocks with >50K avg. daily volume, pps >$10.00/sh, and perhaps also beta >1.5.

Regarding the use of an RSI measure, I just edited my previous post slightly to say that I want to find a robust-acting stock (with RSI of 60 to 70 and trending higher) because these have a better chance of breaking through that established resistance at the previous all-time high while also indicating that the stock can strengthen even more (that is, with respect to that stock's own past behavior, which is what the RSI measures). As you have probably noticed from your chart readings, a stock can surpass and remain above RSI of 70 for a calendar month or longer, so I don't interpret that indicator so much as showing an "overbought" condition.

As a practical matter, a given stock's previous all-time high might not actually be the strongest resistance that had been established among the stock's most recent resistance levels. If the degree of resistance at the pivot is not actually all that strong, then making sure that the RSI is higher rather than lower might perhaps be less important.

Regarding your using an RSI of 50 to 60 as a screening criterion, that would result in your having probably more candidates to examine than I am usually seeing. But I feel that I am getting plenty of candidates each few days, many more than I can act upon.

Regarding how to discriminate how long the stock spent at its previous all-time high, I have to rely on the chart. For instance, here is a 6-mo chart for ANST, a stock that is included in this week's POTW list:

http://stockcharts.com/def/servlet/SC.web?c=ANST,uu[h,a]daolyyay[dc][pb50!b200][vc60][iUb14!Ll14]&pref=G
(paste this entire URL into the browser URL field)

Notice how long the pps has recently hovered at or just below the 35.50/sh price level. This would lead me to believe that the stock will have to accumulate a good bit of bullish energy to surpass this price level. But when it does, it should also make for a nice run up beyond it, but only if the RSI is trending higher and has reached a good level of strength such as around 70.

[Gatorman]

Park:
Your approach is not very different from one that I employ.
I infer from your commentary that you are able to use the MSN stock screener in such a way as to return candidates that have been at or near their 52 wk high for several days or am I reading it wrong?
As you indicated, the number of failed breakouts in weaker markets can be frustrating. I do,however, like your use of a 60-70 RSI. I have been concentrating in the 50-60 range trying to limit those I feel are approaching an overbought area. Perhaps I am missing some opportunities.