1. Try clicking on the name of the most recent article in the column on the right. This will remove the "Archives" list.
2. Try right click on the chart itself and open it on a separate window.
I am sorry that I cannot always make the chart small enough to fit neatly on the left column. I want you to be able to see the details I want to point out.
I Hope this helps,
Juan
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1. You will need an internet browser. For PCCRC traders you need Optionetics Platinum, for CRC traders you need the “Refined Elliott wave Trader” RET software or equivalent.
2. Go to Optionetics.com Market Data tab, select stocks that:
- increase >5% over previous day close.
- Increase 2x normal volume (averaged over 90 days).
- Trading at >1M shares.
- Stock price is >$12.5.
in this example, I would be considering: ACI, SYK, TXU, BTU, TSN
If you use Interactive Brokers, you can see the % gaines and further filter for stocks that are above 12.5% and volume >1M shares. However you still must select stocks that are 2x their average volume. You can do that in Yahoo.
3. Goto Yahoo financial and enter the ticket symbols from step 1 above.
- Select stock with average volume above 1 million shares.
- Look for strong catalyst such as significantly improve earnings guidance, or FDA approvals.
- Discard mergers, acquisitions or upgrades without a catalyst.
Although it is early in the trading day, we can begin to see that all the selected stocks meet the 1M Avg. Vol, but only ACI and TXU may be able to exceed the 2x average volume for the day. However, we can monitor the list as the day progresses and see if new candidates join the list. As of right now, there are no impressive movers, yet.
Yahoo provides these headines for these 2 stocks.
beating expectations is immediately old news, unless the company provides increased earnings guidance, which is what I consider a good catalyst (depending on how strong a guidance). TXU constuction investment sounds like a mildly positive catalyst, and the upgrade by Morgan Stanley we ignore.
4. Group selected stocks into 2 categories.
- Group A: High fliers – stocks making brand new 52 week highs.
- Group B: Wave 3 candidates – stocks that are near 52 week lows.
In this example, ACI is a High flier. By my definition, a high flier is a stock with at least 30% increase in stock price over the last 90 days. ACI is also in a fresh, new 52 week high.
GROUP A STOCKS: HIGH FLIERS
1. Go to Stockcharts.com and view daily and weekly chart for each candidate.
- Stock breaks out over the upper Bollinger band.
- Stock makes new 52 week high
- Stock is $35/share or more.
2. Study Volatility charts.
- Volatility charts are best studied under Optionetics.com Platinum site. However, there are other providers, including some brokers such as OptionsXPress.com and Interactive Brokers.com.
- Select stocks with low IV (usually below 40%).
- IV should be higher for front month options (to be sold) and lower for back month options (options to be bought).
Looking at the IV chart for ACI we see that the stock trades mostly below the 40% IV mark and that there are occasional spikes in volatility.
It is also good to find the proper balance between IV and SV. This ratio should be below 1 and on the rise, not declining.
GROUP B STOCKS: WAVE 3 CANDIDATES
1. Go to Stockcharts.com and view daily and weekly chart for each candidate.
- Stock breaks out over the 52dMA and 200dMA.
- Preferably a long white candlestick.
- Stock is $12.5/share or more.
2. Elliott wave analysis is bullish
- RET analysis confirms a completed valid Corrective Elliott wave pattern to the downside.
- Sets >3 month target to new highs
- Previous short-term high is strongly exceeded.
Once you have selected the high flier and wave 3 candidates, it is time to select the trades that best fit your Elliott wave projections in time and price. In the next few articles I will be selecting candidates by this approach and post some examples of the Elliott wave analysis using RET.
1 comment:
This may be a little out of context, but I thought I should re-post some comments I just made to an archived blog:
At 5:38 PM, Bryan said...
I have Advanced GET, although I don't really use it. I don't see a need for e-signal data since you can get all the EOD data for free from finance sites like finance.yahoo.com. If you don't want to write a script to mine yahoo for data, there is a windows program called MLDownloader (do a web search for it) that will download stock lists and stock prices and save them in ASCII format which Advanced GET can use. You can have it update the data at the end of each day, just like you have to do with Advanced GET anyways.
At 6:18 PM, Bryan said...
I am an Elliot Wave beginner, but I see the potential. I've read the first couple chapters (so far) of Prechter and Frost's book, "Elliot Wave Principle," and I noticed how the authors back in 1978 illustrated the information with real market data they found by obvious countless hours poring over charts. They make a lot of qualititative assessments on the likelihood of outcomes given a particular chart pattern. Here's a sample quote I picked randomly: "In the stock market, when a triangle occurs in the fourth wave position, wave five is sometimes swift and travels approximately the distance of the widest part of the triangle."
These types of comments, from the perspective of today's incredible computing power, are just screaming for a comprehensive cataloging of historical markets to determine probabilities of such events. I think the developers of Advanced GET did some of this, however the culmination of their results is only realized in the AGET and other software, which a lot of people on this thread appear to agree is of limited value.
OTOH, the ongoing work done by Elliotician is a much better example of the power of this approach. It appears that they are being very comprehensive about it, and the results really show in their software's predictive ability.
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