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.

Thursday, June 26, 2008

PENN: Stock has broken the averages and is in a downtrend.

Created when PENN was $34.14.

PENN has broken support at $39, and is below both the 50-day and the 200-day moving averages which is a bearish sign.

While institutional investors are still heavily invested in the stock, they are slowly selling off which is having a negative effect on the stock.

Further, the Relative Strength Index (RSI) which compares the stock to others has been decreasing which means that the stock is no longer a leader, but has become a weaker stock.

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