Welcome. The contents of this blog comprise my personal observations on the stock market from the perspective of using both fundamental and technical analysis by reviewing market data and stock charts based on the methodologies of William O'Neil of Investors Business Daily and his books, from Stan Weinstein's books, and most of all, through lessons learned over the years by listening to Gary Kaltbaum's "Investor's Edge" radio show on Business Talk Radio.

Criteria of stocks include first researching sectors to determine which are strong and which are weak using the ADX indicator (>40 = increased volatility); focusing in on a leading sector and buying leading stocks on a high volume
breakout (minimum 2x average) above a base; stock prices are higher than $25/share with daily average volume higher than 300K; positive and increasing PVT (indicating institutional ownership), positive and increasing RSI (indicating relative strength compared to other stocks in the market).

Please keep in mind that
I am by no means an expert, nor are my posts intended for anything other than to share my opinions of what stocks are doing for the purpose of getting feedback. Thus, please do your own research before taking action on what you read here. I will be adding posts on topics of interest as I learn about them.

Wednesday, June 25, 2008

DRI: With gas prices higher, spending on restaurants will likely decrease.

Created when DRI was $33.76

The economy is getting tighter with more expensive food costs, higher oil prices, higher gas prices, etc. All this means that people will have less discretionary income to spend at restaurants, such as Darden's various restaurants.

Yet, it appears as if people aren't yet giving up their restaurant visits. While driving home today, I saw lines of people waiting to be seated at a local Olive Garden restaurant. This means that there is still a demand for their services.

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