RE-READ DARVAS ARTICLES

I was flipping through some information and this is a note to myself. Check out the TASC from May, 2005 and June, 2005.

CONSOLIDATING STOCKS:
WNR (Buy target = close above $41.49, Sell target= close below $39.52)
ORCL (Buy target = close above $19.39, sell target = close below $18.39)
MCO looks to be creating a bull pennant. So watch for a breakout in either direction.
FXE which is an ETF based upon the Euro currency. Let's see where this is going to take us.
NLY hasn't made a move for a month and a half. Just keep an eye out.
IFOX seems to be forming a bull flag.

CRM may be on the sell/short list soon.
BLUD: Staying away as the gap that was created in early April looks as if it being filled
MR may also fall back to fill the gap.

Good luck trading.
JD

TAM IN BUY TERRITORY

TAM broke above the top of the Darvas box and thus should be starting a new trend. Granted it is not a 52 week high like Darvas liked, but it was after period of consolidation and the accumulation/distribution ratio is climbing.

Click on the chart to enlarge it.

WW broke out of a 4 month base where the stock did nothing but move sideways. Since this is a new 52 week high this truly is a new Darvas box.

KNOT appears as if it is going to start trending up. It has popped back above the 20 day moving average for the second time in a month and this may be the bottom of a cup and handle. The reason it popped up on my search was the "Trend Reversal" search I created in Metastock. Picking stocks at the bottom of a cup-and-handle is risky so this trade is only for those who wish to risk it.

HSR moved back down into the previous Darvas box, but trading volume was weak. This could be expected in a stock that trades in low volume. Place a stop loss if a CLOSE below $10.60 occurs. That's the bottom of the new Darvas box.

MCO is looking good. The technical trades of IFOX and RBN were good performers. Too bad I didn't get in.

No change in Forex positions.

Good luck trading.

JD

INFO FOR ME:GLOBAL INTEREST RATES; NZD 7.5 > AUD 6.25 > GBP 5.25 = USD 5.25 > CAD 4.25 > EUR 3.75 >CHF 2.25 > JPY 0.5

38631529 FM, 38623275 FM, 38627642 FM, 38628670 FW, 38630224 FW, 57692517, 24491787, 24491775, 24491790, fx 10060819 optionaddict

HSR IS A BUY, WIT TESTED ITS LOWER BAR OF DARVAS BOX

HSR hit a buy today as it closed at $11.70. If you are using the Darvas theory along with the ADX model that I worked on, it is now above the level of the old box of $11.60. The other thing that occurred is that there are three white soldiers.

WIT tested the lower end of the Darvas box, but still closed above it meaning that a trader would still be waiting to get in on this one. If you are looking to short this stock, wait until it closes below $16.30.

If you got in on MCO as suggested a few days ago, you were rewarded today with a 4% rise in price on higher trading volume.

BLUD has also retraced in lower trading volume. It might use $31.50 as support/lower end of Darvas box.

No changes in Forex today. There may be some big moves with the Fed talking about interest rates tomorrow.

Good luck trading.

JD

ADDING A FILTER TO MY METASTOCK STOCK SEARCH TO LESSEN SIGNALS

During my most recent modification of my search does bring up quite a few buy/sell signals during a sideways moving stock. My idea is that if I add a "filter", I can decrease the number of buy/sell signals during sideways movement.

Here are what some searches on Google provided:
Higher Volume Exploration
Required: today's volume to be greater than the highest high over the past 21 days.
MetaStock Explorer filter: V>Ref(HHV(V,21),-1)

Let's see if this helps.

Glad I waited on TS. It looks as if there may be an upturn instead of a sell-off. Congrats if you got in on ANST. If you didn't get in on AF, now would be a good time. Same for MCO. Go ARNA, go ARNA, go ARNA!!! ??Double-bottom on TWGP at $30?? A purely technical trade is IFOX based upon the ADX cross that I follow along with higher than average trading volume along with RBN. I wish I could just trade everything I see. Watching WW is showing some good signs as of late. It looks as if WW is using its 50 day moving average as a springboard. A break above $50.71 would be beneficial.

I am still on the buy-side of USD/JPY and it is currently trading at $120.40 up from $120.18 where I bought it. The Asian markets were quiet this week due to holidays, so there may be another move tomorrow. My EUR/CAD trade is also in the positive territory. If you wish to look at forex:
www.fxcm.com gives one the capability to check out forex charts for free.
http://forex.tradingcharts.com/quotes/ provides real-time quotes to check out forex quotes for free

Good luck trading.
JD