The markets are in a bullish trend (see Weekly Market Analysis for May 9, 2009). Monitoring the May Watchlist, there are no trading opportunities identified that fits the trading plan.
That’s not to say that there are no opportunities. Of the 50 stocks on the list, 47 of them are in bullish trends. Both the long-term charts and short-term charts for each of the investments confirm the trend. The stochastics on all the stocks remain in the oversold range. The stochastics staying in the oversold range while the long-term MACD rises often is a confirmation of the trend.
There are three stocks, however, under other circumstances would be potential trading opportunities. Unfortunately, these would be shorting opportunities. On these three long-term charts, the MACD has turned lower after a runup from early March. The stochastics also broke lower for the short-term trend. However, the trading plan does not allow trading against the market trend. Although these investments could be good trades, but they are not in the direction of the market.
Until the market’s trend turns bearish, I will continue to look for buying opportunities and avoid shorting stocks. Over the next couple of days, I will catch up and publish the May Watchlist and the current Triple-Screen evaluation.
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I am an amateur trader and investor with over 15 years experience in the stock market. I was bred to be a fundamentalist and followed fundamental analysis until 2009. Following the 2007-2008 bear market, I began to shift from a buy-and-hold strategy to trend-following techniques.