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NextWant to make 50% in a few days? Note that
when this stock begins to increase in price, it has historically went from 'support' to
'resistance' within approximately a one week period! We can ignore the rate of speed
at which it takes to decline (returning to the support level) since we will have already
sold the shares and invested the profits elsewhere (for yet more profits). Notice
that there are three lines drawn on the chart labeled 'U, L and S'. Again, U
represents the assumed 'resistance' or 'upper channel', and L represents the 'support' or
'lower channel'. S represents the 'slant' or 'directional trend' of the lower
channel. This slant helps to provide some safety as it is trending positive
(upward), however it is closing the distance between the upper and lower channels, slowly
cutting into future profit potential. Before we can anticipate profits on
the next 'half roll' (increase in stock price from support to resistance) we should note
the Asked (price you will have to pay per share if you were to purchase the stock right
now) and Bid (price per share you will receive if you were to sell the stock right now)
quotes of the stock! Although not shown here, the actual Asked and Bid
prices of this stock respectively were 3 1/8 and 2 7/8. [You can acquire the Asked
and Bid prices from the Quote-Chart-News links at AMAZINGSTOCKS.COM such as E*Trade
or Yahoo!] We need to subtract the Bid from the Asked (3 1/8 - 2 7/8 = 2/8).
Using the Cross
Conversion Table we notice that 2/8 represents 25 cents. Now we can reasonably
calculate what we might expect to make if we purchase this stock at 'L', our target per
share purchase price:
| Upper
channel: |
$3.50 |
|
|
| Target
price: |
- 2.20 |
|
In
the above example the Lower channel and Target price are the same. |
|
$1.30 |
|
We
say that the two channels are '$1.30 wide'. |
|
|
|
|
|
From $1.30 we must subtract the difference between the Asked and the Bid: |
|
|
|
|
| Channel
width: |
$1.30 |
|
|
| Asked-
Bid: |
-
.25 |
|
|
|
$1.05 |
|
This
is our anticipated profit per share. |
To calculate the % projected return,
we must we must first divide the $1.05 we should receive per share by the target price at
which we will purchase the shares:
Profit/ share: $1.05 / $2.20 = 48%! ... in a week or
less perhaps!
Warning: Because this stock has
historically increased in price so abruptly, it is best to preset the purchase price by
placing a GTC (good 'til cancelled) order with an electronic broker such as Datek. When
your target purchase price is reached your 'Stop Limit' order will automatically be
triggered, purchasing the shares for you, otherwise you're likely to 'miss the boat', or
end up purchasing at too high of a price. Remember the statement "buy low,
sell high"? For most Rolling Stocks however you should wait until the stock
price returns to and is clearly reversing direction, trending upward at or near the
support level.
Keep in mind that while the market is open the Asked/ Bid prices change constantly.
The calculations above are solely to help you screen out those 'attractive' rollers from
which you're likely to lose money, before you invest in the stock. A portion of the
anticipated Asked/ Bid spread at the last close of market has already been deducted for
most stocks, as well as your estimated trading fees for all standard Rolling Stocks before
we list your estimated net % return! Only with the Intelli$ource
Stock Reports will you receive this additional margin of safety!
You'll note that we don't use the original stock symbols in our examples; because this is
short to medium term trading we don't hold onto the shares for a long time, and therefore
the long term performance of the stock is largely irrelevant. Novices often make the
mistake of focusing on some factors which would make little to no difference in their high
profit potential.
We correctly projected the MAJOR
turn-around in the markets on Sept. 24, 2001 on our Short
Sell reports, and confirmed this on our October 1 Sector Watch report, at a time when many 'experts' remained 'clueless'. Since and before then we have been making accurate projections of
the markets and sectors. Here's what we said, word for word:
From the SHORT SELL REPORT for September 24, 2001:
Shorting is not recommended at this time, as we sense a possible major positive reversal in
the markets (barring major news) late this coming week. Monday and/ or Tuesday may
demonstrate a major capitulation (abandon) in the markets.
From the SECTOR WATCH REPORT for October 1, 2001:
PROJECTIONS: Short term: DOW increases, NASDAQ increases, low to moderate volatility
Monday starts the beginning of a new quarter, and it appears a MAJOR market turn-around (at
least for a few months) has already begun! Note that tech and tech related stocks
are NOT the stocks that are presently moving the market, consumer cyclicals are.
Keep in mind though that October is historically a lousy trading month, and as a result of
all of the above there may be some (great for rolling/ swing stocks!) serious volatility
this month. |
MAKE $$$ IN VIRTUALLY ANY MARKET!
|
__ |
The
INTELLI$OURCE Sector Watch report
... it's how to blow your competition away!
REPORT POSTED FOR: Monday, November 12, 2001
© 2001 INTELLI$OURCE
Print this report in LANDSCAPE form (11" x 8 1/2") |
SECTOR WATCH Report
"They always seem to know around mid-week on TV what we already saw... !!!"
- AmazingStocks.com
Keep in mind that news can always turn markets on a dime, so use this report wisely.
100.00 maximum (strength) <- 50.00 average -> 0.00 minimum (weakness)
INDEX/
M.G.I. SCORE SECTOR/ INDUSTRY GROUP
57.89 One week overall U.S. Market Outlook
ADR--X 54.76 International Market Index Ase
COMPQX 57.14 NASDAQ Composite Index
NYSE 60.71 NYSE Composite Index
SP-500 50.00 Standard & Poors 500
VIX 80.95 Volatility (Higher Number = Greater Volatility)
VIX--X 28.73 Market Volatility Index (Actual Score)
XAX 57.14 AMEX Composite Index
MG110 53.57 Chemicals
MG120 57.14 Energy
MG130 59.52 Metals and Mining
MG210 68.57 Conglomerates
MG310 57.14 Consumer Durables
MG320 28.57 Consumer Non-Durables
MG330 60.00 Automotive
MG340 71.43 Food and Beverage
MG350 68.57 Tobacco
MG410 85.71 Banking
MG420 59.52 Financial Services
MG430 57.14 Insurance
MG440 80.95 Real Estate
MG510 28.57 Drugs
MG520 38.10 Health Services
MG610 66.67 Aerospace/ Defense
MG620 54.76 Manufacturing
MG630 61.90 Materials and Construction
MG710 57.14 Leisure
MG720 45.24 Media
MG730 45.24 Retail
MG740 61.90 Specialty Retail
MG750 38.10 Wholesale
MG760 64.29 Diversified Services
MG770 73.81 Transportation
MG810 54.76 Computer Hardware
MG820 50.00 Computer Software and Services
MG830 62.86 Electronics
MG840 64.29 Telecommunications
MG850 64.29 Internet
MG910 54.76 Utilities
PROJECTIONS:
Short term: Early correction. DOW increases, NASDAQ increases, increasing volatility
We blew the 'experts' away again! Most of those we observed did not expect to break
through the resistance in the Dow, because the support had previously been breached,
however this sector report is the result of extensive 100% computerized number crunching,
using pure technical analysis, not strictly mechanical trading.
Wow! Volatility is increasing, and trading volume was light Friday. This generally denotes
an early market correction, however all signs point to the markets continuing shortly
thereafter on its upward trend... even stronger this time! At this rate we'll probably make
it unscathed (short of REALLY bad news) to more impressive market reports later this month
as compared to those of September. I have a gut feeling that the major negative to our
markets are the international markets, which can drag us down. I wouldn't pick up
semiconductor stocks except at the bottom of the coming correction. You probably won't go
wrong picking up stocks in just about any sector, as virtually all of them appear strong.
Index/ M.G.I.: The Index or Media General Industry Average
Score: 100.00 maximum (strength) <- 50.00 average -> 0.00 minimum (weakness)
(except VIX--X)
Sector/
Industry Group: The Index or M.G.I. Group Name
VIX--X: The actual Volatility Index. A high score here (33 or more) usually
denotes fear, is often associated with a market sell-off or
uncertainty, and if the score is high enough generally marks
the bottom of a market decline. This can therefore be a bullish
indicator.
_________________________________________________________
FOR: November 5, 2001:
PROJECTIONS:
Short term: DOW increases, NASDAQ increases slightly, increasing volatility
We have a MAJOR divergence between the Dow technicals and mechanics. The technicals
say the Dow should soar, while the mechanics expects it to begin some sort of rolling
decline. The NASDAQ's technicals point to a slow increase either way. Perhaps this
is best, slow moves keeps the market from getting spooked, however our volatility
projections shows a likely increase, perhaps a struggle between the bulls and bears.
There are people who believe the increase in the market over the past month is a bit
stretched, as job and other economic statistics for September showed a marked decline,
while others are arguing that the events of September 11 created those statistics, and
the economy had been recovering (especially manufacturing) before those events. We
expect the latter view to spur long term market growth IF we can last long enough for
the reports of this month, which should obviously show marked improvement over September.
... of course that's unless some other major event rocks the news.
_________________________________________________________
FOR: October 24, 2001:
PROJECTIONS:
Short term: DOW increases, NASDAQ increases slightly, high volatility
Last week the markets moved as predicted, until a slew of people contracted various
forms of Anthrax in Washington DC. From that point the markets retreated, then
returned consistent and defiant of news. Earnings reports were mixed, and failed
to ruffle even tech stocks. 1850 appears to be the first line of resistance in the
NASDAQ, and 9800 for the Dow. HOWEVER, I've noticed quite a number of stocks
with technicals that spells 's-e'l-l', so I'm expecting a correction soon, hopefully
minor. The longer this mini-recovery continues, the longer corporations have to
heal from their poor earnings, therefore spurring an end to this long decline.
_________________________________________________________
FOR: October 15, 2001:
PROJECTIONS:
Short term: DOW decreases slightly, NASDAQ increases, high volatility
WE correctly (or should I say our computers) projected a MAJOR turnaround in
the markets on September 24th via our Short Sell report and on October 1 on
this Sector Watch report. As usual the many television analysts were wrong.
We're now projecting resistance in the Dow for the next two weeks, but smoother
sailing for the NASDAQ. Don't underestimate this rally- should the Dow make it
through this resistance, you may have seen the bottom of this market last month.
Experts are saying this low needs to be retested, here's where we find out. In
any case, stock valuations are such that you're likely to miss the first 50% of
profit you 'could have made' if you haven't been in this market.
Even NETWORKING stocks (the last bastion of severe weakness) have been rocketing
north last week!
_________________________________________________________
FOR: October 1, 2001:
58.49 One week overall U.S. Market Outlook
ADR--X 78.57 International Market Index Ase
COMPQX 50.00 NASDAQ Composite Index
NYSE 88.57 NYSE Composite Index
SP-500 66.67 Standard & Poors 500
VIX--X 42.86 Market Volatility Index
VIX--X 35.19 (Actual Index Score, not an estimate )
XAX 57.14 AMEX Composite Index
MG110 76.19 Chemicals
MG120 85.71 Energy
MG130 45.71 Metals and Mining
MG210 47.62 Conglomerates
MG310 45.24 Consumer Durables
MG320 61.90 Consumer Non-Durables
MG330 45.24 Automotive
MG340 78.57 Food and Beverage
MG350 51.43 Tobacco
MG410 85.71 Banking
MG420 66.67 Financial Services
MG430 62.86 Insurance
MG440 80.95 Real Estate
MG510 60.00 Drugs
MG520 68.57 Health Services
MG610 53.57 Aerospace/ Defense
MG620 61.90 Manufacturing
MG630 45.24 Materials and Construction
MG710 62.86 Leisure
MG720 45.24 Media
MG730 64.29 Retail
MG740 50.00 Specialty Retail
MG750 47.62 Wholesale
MG760 59.52 Diversified Services
MG770 34.29 Transportation
MG810 52.38 Computer Hardware
MG820 45.24 Computer Software and Services
MG830 57.14 Electronics
MG840 54.76 Telecommunications
MG850 45.24 Internet
MG910 71.43 Utilities
PROJECTIONS:
Short term: DOW increases, NASDAQ increases, low to moderate volatility
Monday starts the beginning of a new quarter, and it appears a MAJOR market
turn-around (at least for a few months) has already begun! Note that
tech and tech related stocks are NOT the stocks that are presently
moving the market, consumer cyclicals are. Keep in mind though that
October is historically a lousy trading month, and as a result of all
of the above there may be some (great for rolling/ swing stocks!)
serious volatility this month.
DECIMALIZED TRADING /32 & /16 CROSS CONVERSION TABLE: Click here.
MONEY MAKING TIPS FROM INVESTORS AT AMAZINGSTOCKS.COM: Click here.
Our suggested discount broker is: Datek Online
Disclaimer and Notices:
The legal disclaimer which applies to this report, Intelli$ource
Research, AMAZINGSTOCKS.COM and POWERINVEST.COM may be found at:
http://www.amazingstocks.com/FAQ.htm
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