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

MA: Bearish Head & Shoulders topping chart pattern. Look out below.

Created when MA was $289.79

For those of you who follow charts, Mastercard has traced out a head and shoulders pattern which can mean that for the meantime, the stock has topped.

Notice the left shoulder being formed at the end of April '08, the head at the end of May, and then the right shoulder (lower than the left (as it should be) in June.

While this indicates that the chart has topped, this does not mean to short-sell or to buy puts. Short selling requires careful timing and people shouldn't jump into it without learning about it first.

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