August 30, 2012
This indicator suggests tomorrow is a low risk time to got long stocks for a short term bounce.
But since the Summation Index is toppy, use tight stops and get out too soon.
+ An NR8 even though the broad market had a down day.
+ Short term RSI crossed over medium term RSI.
– Medium term RSI still heading down.
+ – Depending on the source 17 (finviz) — 30 (yahoo)% of float is short.
EDIT: NASDAQ indicates a short ratio of about 16 days to cover as of August 15.
So buy on a stop around 31 with a stop loss around 30.45.
+ Price could have dropped a lot today, but didn’t.
– A fair amount of red volume bars.
Buy stop around 97.37. Stop loss around 95.45.
Update 1, September 1: Long ACOM at about 31.02 and DVA at 97.40.
– Neither stock went up much at all.
– Low volume on both stocks even though stocks in general had decent volume.
Update 2, September 5: Moving DVA stop to around 98.15.
Update 3, September 11: Stopped out yesterday at about 98.10. +1%.
Price is kind of weak:
– The spike up 4 days ago saw price close in the lower half. (Should have sold half right then.)
– Filled gap yet kept going down.
– Tested short term EMA (yellow) and is, so far, under the EMA.
– Finally bounced, so far, off the minor down trend line.
– Short term RSI (yellow) has some more room to decline.
Update 4, September 14: Stopped out of ACOM for a -3% loss.