ROIAK or Radio One Inc., the radio station owner and operator, just made it on my watch list. As usual, I am sticking to fairly cheap instruments. The weekly charts tells me ROIAK may have formed a bottom last August, making it an attractive long. The current weekly trend is up and the impulse signal is green meaning the MACD histogram slope is up and the EMA is also trending up. So we have both momentum and inertia favoring the bulls. The weekly chart also formed a small bullish divergence between the May 06 bottom and August 06 bottom where the MACD traced a higher bottom.
I will be watching the progress of NGAS in the coming week. The weekly chart gives a blue impulse signal which is not ideal but permits me to trade long if I so desire. The MACD histogram is up but the EMA still shows a down trend. I think the weekly primary trend is down but chart shows regular upswing so I could trade this between the channel lines.
I know my posting has been inconsistent but such is life. Some weeks trading and blogging take a lot of my focus and others, well not as much. This time I was brewing something new I meant to start some time ago. A new series of posts categorized ‘Black Belt Trading’.
For those who do not know, I am a martial artist. I recently read a great little book by Jennifer Lawler titled “Dojo Wisdom”. In it, she introduces 100 simple ways to make you a better and stronger person. The book has really nothing to do with martial arts but she uses teachings from the dojo and extrapolate important life lessons. If you have been reading here for a bit, you may have seen the Key Principles post from last summer where I mentioned I found fascinating that lessons learned to make you an expert in one area are usually easy to transpose and translate to a totally unrelated topic. In the same vein, I plan on using Jennifer’s lessons to extrapolate lessons for better trading which I hope will help me, first as well as the readers. For my first tip, I will use Dojo Wisdom #2: A punch is just a punch. She writes:
“Bruce Lee once said (to paraphrase) that before he began training in martial arts, a punch appeared to just a punch – that is, a tool for fending off an attacker. But when he began to study martial arts, the punch became much more – it became symbolic of power, of control, of possibility and of achievement. Yet, when he finally understood martial arts, he realized that a punch was just a punch.”
Learning to trade often works the same way. When you start, the charts are just prices at which trades are made. Than you dig and learn various indicators and charts have moving averages, MACD lines or histograms, stochastics, TSV or RSI plots. Charts can be bars or candles and various candles in various patterns have different meanings. Prices also form patterns like double-tops, double-bottoms or head and shoulders. When you are done with all that and have more experience, charts end-up being pretty much what they where: prices in time at which trades are made.
Wallstrip looks at WIT and so are we. WIT is an India based IT provider. Founded in 1945, it now has about 53,700 employees and has a slightly over 24B of market cap. WIT has been trending up pretty steadily since the bottom at 3.05 in May of 2003. Trading at a comfortable 16.83, WIT could be a long candidate.
This post will certainly highlight my ‘tech’ side but I had no choice but to cover this here. This tool has single handedly improved my life, my trading and all my work at the computer in general. Many traders (actually pretty much everyone these days) rely on multiple screens to do their work. Scanning charts, news, websites and what have you requires a lot of screen real estate. In a lot of cases, you can hook up multiple screen on a single cpu but sometimes, you just have to deal with multiple machines. When dealing with multiple machines, I usually see either the user A) switching from keyboard to keyboard trying to work on different machines or B) using a hardware KVM, pressing a button to switch the main keyboard from machine to machine.
For several months now, I have been using Synergy, a small piece of software, available for free, that virtually binds a single keyboard and mouse to multiple computers, given the computers are connected on a local network.
I do not own SAM nor will I get in at this point but if I was, I would short SAM below yestersday’s low of 34.28. I know I am a day behind Wallstrip here but I guess recovering from the holidays has been harder than I thought. And please watch the Wallstrip Show on SAM and follow up with the blog.
Reading charts tonight I fell on FAF which attracted my attention and would consider getting in around 42.10 with a stop around 40.39. The weekly chart shows a potential uptrend with the EMA trending up and the MACD histogram slope is also up (Elder‘s Impulse System). On the daily chart I see the same pattern: EMA trending up and MACD histogram sloping up also. The TSV recently crossed under which could indicate a good entry point.
As you may know, I trade few titles and hold for a couple of days only. I usually look to hold 1-5 days. This may be elementary comment to most but as I many a times, I am green. I was never really paying attention to the general market directions. I think was getting getting dropped out at my stops when the market in general was moving against my trade. so for January. I will start looking at general market trend and try to trade with the trend only.
For the short-term, we have the NASDAQ down, the S&P somewhat lateral and the Dow still up. So for today, I was hunting for a few shorts on NASDAQ only. I am starting with two titles for now: SVNT and UNTD.