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

MON: Stock returned to its 50-day moving average.

Created when MON was $131.52

The stock returned today (6/25/08) to its 50-day moving average in a correction from it's overbought prices. While this might not be the bottom of the correction, for now, it's probably a good place to pick up extra shares.

For those of you who are more wise with the buying and selling (this is a good thing), look for the stock to create a base (e.g. a trading range), and then buy it on the breakout from the base.

NOTE: I am not 100% sure about this, but for some time, this group, the fertilizers, oils, etc. have had a major run up in price. Now that everyone knows about it, there is a possibility that the bull market for this sector may be over.

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