Mike
11-26-2012, 10:31 AM
I have been cogitating for a while on the novel follow-through day call on the partial trading day Friday.
The Market School exposure model kept the buy switch off. That model is a complete mechanical model and FTDs on partial trading days are too rare of an event to back test to create a proper rule. So what we have here is a situation where Bill O'Neil relied on his judgement of the situation. I have seen other out of the box calls before such as calling a FTD using the IBD 100 index. That experiment was deemed a failure and only time will tell on this one. I lean heavily on the Weekly Coppock buy signal conformation coming within ±4 weeks of a FTD. A little bit of excel modeling tells me that we are not set up for a buy signal for at least 5 or 6 weeks so this FTD could be premature.
There are a few stocks that are working such as ARMH, EXP and FLT. A few others may set up properly or pull back to a buy point: HD, RYL, DDD, SHW, ALKS, URI, CVLT, PCLN, ISRG. RNF had a recent shakeout below a prior low setting up a possible shakeout + $3 buy point. Bill O'Neil learned this technique from Jessie Livermore. The buy point is $3 above the first low for stocks trading between $30 and $60.
The Market School exposure model kept the buy switch off. That model is a complete mechanical model and FTDs on partial trading days are too rare of an event to back test to create a proper rule. So what we have here is a situation where Bill O'Neil relied on his judgement of the situation. I have seen other out of the box calls before such as calling a FTD using the IBD 100 index. That experiment was deemed a failure and only time will tell on this one. I lean heavily on the Weekly Coppock buy signal conformation coming within ±4 weeks of a FTD. A little bit of excel modeling tells me that we are not set up for a buy signal for at least 5 or 6 weeks so this FTD could be premature.
There are a few stocks that are working such as ARMH, EXP and FLT. A few others may set up properly or pull back to a buy point: HD, RYL, DDD, SHW, ALKS, URI, CVLT, PCLN, ISRG. RNF had a recent shakeout below a prior low setting up a possible shakeout + $3 buy point. Bill O'Neil learned this technique from Jessie Livermore. The buy point is $3 above the first low for stocks trading between $30 and $60.