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Some stocks to watch
here are some stocks to watch.. hope they do well..
Here are some picks to study during this coming week
can't complain.. still trying to survive.. I hope to do better on this one.
I have some more picks coming just for studying.
Thanks Ken.. indeed it is fun. I am testing my scan here and hope to see it work. I know some stocks may not be good for trading but I liked their setup and thought to watch their behavior during the next few days. Some stocks did confirm the magic box on friday like PURE and the rest should confirm during this week me think.
hope someone finds any of these picks good :)
Here are some stocks some stocks to watch.. The llist is abit long and sorry for that.. GLTA
to be more accurate.. the hollow candle drawn in red means an up day ie. open and close are both below previous day's close, AND close this day is above the open
and for the black candle .. open and close are above previous day's close, however, it is a down day
Stocks to watch for this week..
Merry Christmas to all of you. Hope 2007 be prosperous for all
Merry Christmas to all of you. Hope 2007 be prosperous for all
Chartinator sorry for not being able to send you a PM as I am not a paid member yet. So I have to reply in public.
The stocks that I include in the study are results of my scans and not recommended to me by Ken.
the difference between the two tests is the confirmation of the landslide setup which is the exact opposite of the magic box setup. The first method suggests holding the stock until we get a confirmed landslide (confirmation happens when %R(9) crosses below -50 after having an upday followed by a downday)
the second method is exiting at the peak, assuming we know where the peak is. This is just to show that all picks were profitable even the loosing ones, and if one could recognize the landslide setup at an early stage then one can have better gains.
Also, If you have noticed 100% of the picks had increased after our entry. So using trailing stops in trades will for sure lock in some profit imo.
hope this was clear..
Ken.. Sorry for the very late reply, But I was extremely busy and hardly got the time to do anything.
And because I was out of the country for the last two weeks of November, I could not properly execute the test for this month.
but I was able to do it for the first half of the month.
Again..
This is the result of my paper trading using magic box setup developed by Ken for the month of Nov.
As you can see I have devided the transactions into two parts: the first is the exiting upon the confirmation of a landside setup.
The other is exiting at the highest price the stock reached while holding.
This time There were 19 trades, 6 out of 19 resulted in losses while the rest where gains that reached 96.49% for the fisrt part. While in the second situation,when exited at the highest price,
the number of losing trades were zero! (0 out of 19) and the gains were 248.70%. And of course the losing trades had reasons just like before and I could say it was merely because of poor judgement on my part.
The minimum gain(%) after entering long was 3.73%. So if one could just be happy with the 3% per trade, he would have been very happy and could have made 57% gain. Isn't this awesome?!!!
To me, almost 100% gain in a month given the bad calls I made is really beyond what I ask for.
best luck to all of you
Trade # Ticker Scan Date Entry Date Exit Date Entry Price Exit Price Gain($) Gain(%) Highest Price Gain($) Gain(%)
1 ALT 06/11/2006 06/11/2006 16/11/2006 0.155 0.15 -0.005 -3.23% 0.18 0.025 16.13%
2 ALY 06/11/2006 06/11/2006 17/11/2006 17.75 18.1 0.35 1.97% 19.49 1.74 9.80%
3 CGPI 06/11/2006 06/11/2004 14/11/2006 13.75 13 -0.75 -5.45% 14.71 0.96 6.98%
4 CKSW 06/11/2006 06/11/2006 17/11/2006 3.2 3.05 -0.15 -4.69% 3.4 0.2 6.25%
5 TWLL 06/11/2006 06/11/2008 22/11/2006 17.2 17.6 0.4 2.33% 19.25 2.05 11.92%
6 SPSS 06/11/2006 06/11/2010 27/11/2006 28.25 27.5 -0.75 -2.65% 30.29 2.04 7.22%
7 UNT 06/11/2006 06/11/2012 16/11/2006 48.2 49 0.8 1.66% 52.04 3.84 7.97%
8 DRS 06/11/2006 06/11/2016 17/11/2006 46.5 47 0.5 1.08% 48.67 2.17 4.67%
9 MWY 06/11/2006 06/11/2018 16/11/2006 8.85 8.7 -0.15 -1.69% 9.18 0.33 3.73%
10 BIOS 06/11/2006 06/11/2018 01/12/2006 2.4 3.5 1.1 45.83% 3.7 1.3 54.17%
11 ECIL 06/11/2006 06/11/2018 17/11/2006 7.62 7.8 0.18 2.36% 8.12 0.5 6.56%
12 LNDC 06/11/2006 07/11/2006 30/11/2006 9.6 9.6 0 0.00% 10.2 0.6 6.25%
13 SIFY 06/11/2006 06/11/2018 01/12/2006 9.1 9.8 0.7 7.69% 10.32 1.22 13.41%
14 EMC 11/11/2006 12/11/2006 27/11/2006 12.5 12.8 0.3 2.40% 13.33 0.83 6.64%
15 CBMX 12/11/2006 13/11/2006 01/12/2006 0.82 0.98 0.16 19.51% 1.07 0.25 30.49%
16 NENG 12/11/2006 13/11/2006 01/12/2006 2.1 2.4 0.3 14.29% 2.4 0.3 14.29%
17 PCYC 12/11/2006 13/11/2006 28/11/2006 5.3 5.7 0.4 7.55% 6.27 0.97 18.30%
18 CNTF 12/11/2006 13/11/2006 24/11/2006 7.6 8.2 0.6 7.89% 9.08 1.48 19.47%
19 ENDP 14/11/2006 15/11/2006 21/11/2006 28.5 28.4 -0.1 -0.35% 29.77 1.27 4.46%
Totals 96.49% 248.70%
to me, if it wasn't for the full stochastic crossing above 20, this stock would most likely gap up at the open and goes a bit higher then drops. the candle is way to long and the volume is heavy. time for profit taking imo. but what do i know i am also learning to trade here.
a word of caution:
mostly when I analyze a stock it does exactly the opposite
I just like to point out something..
Ken, our mentor, Usually encourages us to go long on stocks that are in gold rush mode or pre-gold rush mode, because those stocks have higher probability for growth, and to avoid stocks in quicksand mode or after goldrush mode.
Now, since the landslide setup is the exact opposite of magic box set up, then we should short stocks in quicksand mode or after-goldrush mode cause they have higher probability of decreasing in value, and try to avoid shorting goldrush or pre-goldrush stocks (unless it is a hit and run type)
AAP as Ken said was in pre-goldrush mode and then went into gold rush mode on Nov 7th. That is why (in my opinion) the first landslide setup did not last nor did the second setup. Also, as I understand, goldrush stocks have a higher chance of bouncing from the MA(20) and form a supported magic box. And if you see the ADX(5) indicator you would see that +DI(5) is still dominant which is a sign of growth.
To me AAP is a stock to own rather than to short
Sorry Mike. I can't PM you cause I am not a paid member yet.
Regarding your question about the landslide setup. Though I never used it to short stocks, if I understand it correctly it should be the exact opposit of the magic box setup. This means that you shold have:
(1) a white candle on day one with a close near the upper bollinger band (I prefer above) and Aroon Up(8) = 100.
(2) Then on day 2 you should have a red candle (down day) close inside the bollinger bands with Aroon Up(8) declining to 87.5
when these two events occur, then you have an unconfirmed Landslide setup. To confirm the landslide setup, the Aroon up(8) should drop to 75 or below and Williams %R(9) should cross below -50 and head down to -80.
This doesn't have to happen in the same time.. You have full 8 days for the landslide setup to be confirmed. Any thing beyond that time should be ignored (to my understanding.)
this is the basic setup of the landslide. moreover, I prefer to use "full stochastic %k(14,3,3) above 80 and curling down towards 80 and below" as an alert to be looking for a possible landslide setup.
As an example, look at the chart below of Wallgreens (WAG).
On Sep 11, the stock closed almost at its peak of 51.51. the next day it dropped down to below 51. now if you see the Aroon indicator, you would notice that the Aroon up(8) is 100 on Sep 11th and dropped to 87.5 the next day.
now on day one you have a white candle closing above (or near) the upper bollinger band with aroon up(8) at 100. And on day two you have a red candle closing below the upper bollinger band with arron up(8) dropping to 87.5
so now u have an unconfirmed landside. now we wait for the arron up(8) to drop to 75 or below and for the williams %R(9) to cross below -50 for confirmation. That happened on the third day. So had you been monitoring the stock activity, you would have shorted the stock on the third day before the close. (Some traders would wait for a pullback since it closed below the 20 day moving average.)
Anyways. I hope this was helpful to you. Good Luck
PS: Your exit point should be upon the confirmation of the magic box setup, or whenevr you feel you had enough and it is time to cover :)
Just to share some info.
This is the result of my paper trading using magic box setup developed by Ken for the month of Oct.
As you can see I have devided the transactions into two parts: the first is the exiting upon the confirmation of a landside setup.
The other is exiting at the highest price the stock reached while holding, which can be said the very bigenning of a landslide setup.
There are 23 trades 5 of which have not yet given an exit signal, 7 out of 23 resulted in losses while the rest where gains that reached 314.05% for the fisrt part (upon confirmation
of landside setup). However,in the second type at the start of landslide setup, when exited, the number of losing trades were far less
(2 out of 23) and the gains were 678.76%.
Of course the losing trades had reasons for thier bad performance as they might have been stocks in quicksand mode.
Overall, 300% gain in a month is more than I dream of..
best luck to all of you
trade # Ticker scan Date Entry Date Exit Date Entry Price Exit Price Gain $ Gain % Highest Gain $ Gain %
1 MGEN 02/10/2006 03/10/2006 04/10/2006 0.0075 0.0065 -0.001 -13.33% -13.33%
2 TERN 02/10/2006 03/10/2006 06/11/2006 0.95 1.35 0.4 42.11% 1.59 0.64 67.37%
3 MENV 02/10/2006 03/10/2006 11/10/2006 0.025 0.022 -0.003 -12.00% -12.00%
4 WWAT 02/10/2006 10/10/2006 08/11/2006 0.2 0.32 0.12 60.00% 0.33 0.13 65.00%
5 ISO 03/10/2006 04/10/2006 24/10/2006 0.34 0.4 0.06 17.65% 0.45 0.11 32.35%
6 RHA 03/10/2006 04/10/2006 08/11/2006 2.28 2.7 0.42 18.42% 2.77 0.49 21.49%
7 CKYS 03/10/2006 23/03/2006 08/11/2006 0.015 0.031 0.016 106.67% 0.035 0.02 133.33%
8 DTLK 03/10/2006 04/10/2006 18/10/2006 10 10 0 0.00% 12.5 2.5 25.00%
9 LSI 03/10/2006 10/10/2006 08/11/2006 8.3 9.75 1.45 17.47% 10.1 1.8 21.69%
10 NESS 03/10/2006 04/10/2006 09/10/2006 0.15 0.145 -0.005 -3.33% 0.17 0.02 13.33%
11 REV 04/10/2006 05/10/2006 16/10/2006 1.35 1.32 -0.03 -2.22% 1.35 0 0.00%
12 ITC 04/10/2006 05/10/2006 06/11/2006 32.9 35.2 2.3 6.99% 36.08 3.18 9.67%
13 SFE 05/10/2006 06/10/2006 23/10/2006 2.15 2.25 0.1 4.65% 2.5 0.35 16.28%
14 PPHM 09/10/2006 11/10/2006 23/10/2006 1.3 1.4 0.1 7.69% 1.46 0.16 12.31%
15 SGTL 12/10/2006 13/10/2006 24/10/2006 5.1 5 -0.1 -1.96% 6.01 0.91 17.84%
16 URME 12/10/2006 13/10/2006 02/11/2006 1.6 1.8 0.2 12.50% 2.25 0.65 40.63%
17 IMMG 12/10/2006 13/10/2006 23/10/2006 0.5 0.8 0.3 60.00% 1.28 0.78 156.00%
18 OMR 12/10/2006 13/10/2006 05/11/2006 2.72 3.1 0.38 13.97% 3.49 0.77 28.31%
19 AGEN 12/10/2006 13/10/2006 03/11/2006 1.85 2.05 0.2 10.81% 2.2 0.35 18.92%
20 NDOL 13/10/2006 16/10/2006 18/10/2006 0.2 0.18 -0.02 -10.00% 0.215 0.015 7.50%
21 FSMH 20/10/2006 23/10/2006 25/10/2006 0.0004 0.0003 -0.0001 -25.00% 0.0004 0 0.00%
22 ORCH 20/10/2006 23/10/2006 01/11/2006 3.05 2.9 -0.15 -4.92% 3.25 0.2 6.56%
23 RMDX 21/10/2006 23/10/2006 08/11/2006 1.9 2.05 0.15 7.89% 2.1 0.2 10.53%
Total Gain: 314.05% Total Gain: 678.76%
Hello again Ken,
I have a question. What is the difference between the Quick Hit Template and the Ultimate Indicator Template you have in the Ibox? TIA
Thanks Ken .. Appreciate ur help.. I have to look deeper into fairy square I guess :))
So Ken.. You prefer to wait for a fairy square to happen in declining stocks before entering long? even if the stock is in quicksand phase? TIA
Ken good morning.. Could you please tell me what you think of ATAR? I like this one for long term investment. TIA
C Patrick .. Allow me to explain the magic box according to my understanding and if I was wrong then I hope someone corrects me too..
to call any setup a magic box, two events have to happen:
Day 1 (Down Day):
red (black) candle near lower bollinger band
Aroon Down(8) = 100
Day 2 (up Day) :
white (green) candle
Aroon Down(8) less than or equal to 87.5
if both these events occure, then you have a magic box setup
however, it is not yet confirmed for entry..
it becomes a confirmed magic box whenever the Williams %R(9) crosses above the -50 (and stays there)
I do.. I have it on my watchlist .. too bad am still paper trading the magix box strategy.. once I got it on the scan it captured my attention.. I think if it closes above the 20 day moving average then it could go up for several days.. jmho
Thanx Ken, Hope you are not annoyed by the many questions I ask. You have great knowledge and I am trying to learn .
Hi Ken, A question just popped into my head and I thought I might ask you. When there is a confirmed magic box should there be a landslide setup at the end of the run?
TIA
Ken, thanx for the reply and kindly correct me if I am wrong:
So for the magic box to be confirmed, the Williams has to cross the -50, and that's should be our entry point. The exit point would be up to our greed :) but a good exit point would be when price closes below the 5 day moving average.
TIA
Hi Ken, Just a question to grasp the magic box concept.
would you say that SPRL Has formed a magic box? TIA
Hi ken,
are u refering to chdt or xkem? cuz I got confused by the Sickle Cell issue.. thx
Thanks kgoodrich, eagerly waiting
HI Kgoodrich & everyone..
this is my first post ever on ihub, and i am also a newbie to the trading world.. I have run across this board a few days ago and been following the posts ever since.. I think I have grasped the concept of the magic box set up very good, however, there is one term that I have not been able to come across or find so that i could study and understand it. And that is the "GOLD RUSH" concept.
Could you please point me to where I cold find info about the "GOLD RUSH" concept and template that u have used in your scan?
Thanks in advance