Copyright 2005 Larry SwingTo readers of ?What the nets saw today??: Many of you may
have missed some of the early articles in the Power Swing
Primer series, but no worries. These articles describe the
statistical probabilities of long positions on these
equities, based on neural net projections, for the next
5-15 days. These are not holy grail methodologies, the road
to easy street, or anything else. These projections are the
result of screening for technically significant retracement
and momentum patterns that have been further screened for
value and bullish sector performance. In other words, the
projections are for long positions. Please, however, read
the disclaimer below. This article is used for educational
purposes, as are the Power Swing Primer articles.
The Fed Funds rate went up, stocks went down, and nothing
much changed yesterday. Again it appears that certain
mining and energy stocks are popping up on the horizon
again, along with a few of the internet names we have
tracked previously (NTES jumped up and showed up on the net
screens). Two other names, one energy name (ARD) and one an
internet wedding services company (KNOT) showed up, but
popped up well past their pivots. KNOT has spent most of
its life until just recently as a Bulletin Board stock, so
the length of the model is pretty small. Both of these are
strong earnings growers, but it might not be wise to chase
in this volatile environment. We will continue to track
them and look for other entry points.
We are still a little concerned about commodity pricing
(coal and natural gas) as we are in a period of price
consolidation, but the nets are starting to like energy
exploration and mining stocks again in general. Everything
else, however, is a mixed bag. Even though it appears some
insurers (like HRH yesterday) may have room to move higher.
The same conditions apply to some of the ADRs (like CX,
which has moved about 6% since it popped up on our
screens). It is still a very volatile trading environment,
however, so caution is still advised.
Here is the chart of the $COMPQ we promised yesterday, with
a little November 2005 data added in. As you can see
(reference yesterday?s charts) the momentum is still
slightly negative on a monthly basis. Perhaps, if the Fed
will complete its tightening phase, there will be room for
more upside, but for now, the downside should also be
respected, particularly if the Fed over does it (which it
has done many times in the past).
Here is what the nets saw today:
BAP 21.19/1 84.6% (short trading history and way past it?s
pivot based on yesterday?s trading?perhaps can be
positioned on an intraday pullback).
NTES 3.39/1 66.7% (again, same problem as with BAP
regarding the pivot, it might be possible to position an
intraday pullback)
ECA 3.18/1 88.9%
JH 3.11/162.5%
BVN 2.91/1 83.3%
That?s it for now. We are still in a very dicey and
indecisive trading environment. We are continuing to dig
out nuggets and pockets of strength, and as we find them,
we will bring them out. The two mentioned previously that
are not in the final screen list are definitely candidates
to follow.
...thanks for the trust you've shown in our team. MrSwing
Trading Team
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by MrSwing Trading Team - Nov 2, 2005
http://www.mrswing.com/
