Some applications in leading stocks

[nickola.pazderic]

Hi Y'all,

As some may remember, Mike Scott kindly reminded me not to worry intra-day buy points when buying leading stocks. The problem (?) for me is that I'm drawn to precise entries.

In the Algo & Multi-Pivots Forum we cover some very instructive and profitable entries and exits. Perhaps others would be willing to share some trades they have taken, while employing floor pivots.

Thus, I start a thread with a trade of my own. Of course, the thread may disappear into deep EV archives in 24 hours or so. But, I hope others will post some trades for pedagogical and entertainment purposes only, of course.


“If you cannot make money out of the leading active issues, you are not going to
make money out of the stock market. That is where the action is and where the
money is to be made.”

-- Jesse Livermore




This is a leading stock.


Also note the EV rating:




November 4 presented a so-called “pocket pivot” high volume breakout, called by Dr. K. in his VoSI real time email notice.





I watched it Friday, but I decided to buy it, not according to the price action on Nov. 4, but according to the floor pivots in the days to come. I reasoned it would pull back enough to get me a good entry. I waited with my order at WPP, and I was filled 4 hours after the market opened on Monday, November 7.





Perhaps Billy or others will be amused in that I chose WPP as the entry. I have no weighted resistance/support clusters, and I don't know how to create them precisely. That is, I eyeballed it. Talk about precision! (Any critical comments are very welcome and greatly appreciated).

I suppose this will be a volatile and unpredictable ride. Kevin Marder --from whose recent report I draw the above Jessie Livermore quote-- doesn't like the base of HANS. But it is reasonable, I think, to choose one Livermore-leading stock and take the chance on a momentum breakout. Simple as that.

[buzzman]

Good Morning Nickola,
I think you have a great idea and I'm hoping that others will pitch in. I'm not so new to the game but relatively inexperienced so I want to see a lot of ideas.

I have a couple of questions about your entry. What was your profit target. I see strong resistance at YR3, and an entry at the WPP of 92.49 appears to have very little potential. Was this for a longer term trade or just a quick small profit from a daytrade? Moreover, are you looking beyond the YR3 resistance?

What is the start date, end date, start idx, end idx graph; I'm not familiar with it? And finally, do you have a program that calculates all of the PPs, or do you calculate them one at a time for each stock that you consider?

Hope you are not offended by my questions. If I knew what I was doing, I would not be asking these simple questions.

Good Luck, and Thanks
Buzz

[nickola.pazderic]

Hi Buzzman,

I don't have software to calculate support and resistance clusters. Apparently, Billy and Pascal do. And it seems a very valuable tool. No wonder they keep it to themselves.

I'm not certain about the IDX chart to which you refer. But, I know that the SPX peeking above the 20 period SMA on a monthly chart is proven by the primitive backtest method of a 20 year chart to be very bullish. I don't think the move up is over.

Today, HANS pulled back to the WPP, and I bought two more pieces. The stock took off. So far, so good.

As for an exit, this is a "Big Stock". Thus, according to CANSLIM, I should hold out for 20-25% profit. I could also exit on a break below the 50 day SMA because the stock has held it for many months.

Cheers,

[asomani]

But, I know that the SPX peeking above the 20 period SMA on a monthly chart is proven by the primitive backtest method of a 20 year chart to be very bullish.

As Billy posted some weeks back, from Rennie Yang:
"Historically, crosses of the 20-bar average on the monthly S&P chart have proven to be more reliable than crosses of the 200-day average. Out of 24 signals since 1950, note that only one led to a meaningful loss when the signal was closed out, and even that was less than 10%. By comparison, there were fourteen signals that generated a profit of more than 10%."

[nickola.pazderic]

I'm not surprised that this has appeared previously and that Billy knows it well.

As I've noted previously, I have improved as a trader vastly with the help of him and others here. It is for this reason that I venture, perhaps foolishly, into the exchange of ideas. From the give and take, I now feel the earth become a little more steady under foot.

Also, please note that Paul Duncan has had HANS firmly in his sights for some time:

[buzzman]

Hi Nickola,
Looks like you have thought it through well. I was referring to the IDX entry in your 4th chart above from you post today. It looks like something from Maxime's pivot point calculator that Billy referenced for me. The url is http://bit.ly/hQdjAs

Are you familiar with it? It is free and I have copied it into excel but haven't been able to make it work yet.
Buzz

[nickola.pazderic]

1. save the link to my favorite's bar.
2. open the link when necessary
3. log in to gmail/google
4. open the "file" tab
5. click make a copy
6. it will ask what to name it: any name will do
7. once you have saved a copy, you can input any ticker and, voila, pivot point data appears.

cheers,

[buzzman]

Thanks for the info.
I'll keep trying to make it work. bz