A counter-trend coming?
Posted by Frugal on August 13th, 2008
My preferred techinical indicator is MACD which is more reliable in detecting the trend. Here are just two charts that I’m looking at, both have a bullish cross in MACD:
Financials are over-bought & turning down. Natural gas stocks are over-sold & turning up.
P.S. I hold positions in the above charts through the component stocks and/or call/put of the options.
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August 14th, 2008 at 2:13 pm
I like the MACD as well as an indicator of trend. The ADX is something I use as well in conjunction with the MACD (of course I favor trading currency instead of stocks so I am not sure if the ADX is available for stocks, you think it would be). Your first chart there looks good, MACD is showing a good point of turning, and to make it better you see a breakout in the price from a few days ago. The only problem I don’t know how strong or if there really is a trend forming. I would probably be optimistic that it would hit 140 again soon but I really don’t trade stocks anymore.
Good Luck
August 29th, 2008 at 11:19 am
You made a very good call on the natural gas and financials. I would sure like to know what parameters and indicators you use for stock picks or ETF’s or indexes.