7-21-14 Comments

Watch list has been updated in the High Growth Stock Selection area.

Last week I entered AVGO, CLR and ATHL. All of these were on volume alert triggers. A volume alert is triggered under the following conditions:[INDENT]* Price closes up on the day
* End of day volume greater than any volume in the prior 10 days that closed down on the day
* Price bouncing off or coming up through the 50-day moving average or 10-day moving average[/INDENT]Intraday volume is extrapolated using a 6th order polynomial that approximates a daily volume profile (high volume early and late in the day and light volume during the middle of the day). Extrapolated volume is used to generate intraday alerts.

AVGO was entered on Friday. AVGO came up through the 10-day and is currently 1.8% above the 10-day moving average. Volume spiked above any red volume bar over the prior 10-days.

ATHL was entered on Thursday. ATHL gave me a little problem because the intraday volume trigger alert was overcome by a late in the day price reversal. Since volume trigger alerts require that price close up on the day, this negated the alert. I had already entered the position and decided to keep it as long as it held the 50-day.

CLR was entered on Monday. It was bouncing off of the 10-week moving average and I entered on a 50-day volume trigger alert. I had owned CLR before, selling during the prior week market weakness while I was on holiday. This was essentially me reentering the position I had sold. Me reentry was at a lower price than where I had sold.

We continue to test the volume alert trigger system.