Howdy folks! Welcome to my blog. It's not so much a cash generating sorta blog, but one that points out stocks that I'd put (or have already put) my money in.
Basically, I'm a Chartist. I was introduced to charting back in the early 80's while working nights in Pasadena turning the cranks on the old mainframe computers. I'd get home in the mornings and instead of watching Voltron or As the World Turns, I started watching channel 22 all day and learning about the Market. I absorbed all the Wisdom (buy low, sell high, etc.) from the updates on the market all day, but I always thought one of the smartest guys on there was Gene Morgan. He had a show called "Charting The Market" that came on every day after the day's close. He'd take everything from the DJIA, Transports, and Utilities, Gold, Silver, all the way to individual stocks and explain them all on his charts. He could explain all the mcclellan oscillators and summation index, advance/decline lines, and Bollinger Bands, and all the tools they were using.
These days, I like to use a website called FreeRealTime.com for my research. They're actually free, but it's almost worth the pay site for the relief from popups/unders. You can create custom charts for most any stock on the US exchanges. Oh, the ADR's work too. I like to use a 3 or 6 month timeline with a 50day SMA, along with the MACD, RSI, and volume displayed below.
What I like to look for in a stock is generally a hammering, where the price has taken a beating due to news of some sort. This usually coincides with the RSI hitting 20 or lower, indicating an oversold condition. Looking at the MACD (http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:moving_average_conve) , I try to find an uptrend, or at least a crossover into positive territory. Many times, after a hammering down to a stock's 20 or lower RSI, it takes a while to get the MACD turned around and heading upward again, but when it does, I look to buy.
Stocks I'm looking at now are Gateway Computer (GTW), Countrywide Financial (CFC), and Advantage Energy Income Fund (AAV). Nice dividend from AAV ($.14/month), but they keep Canadian taxes out of it, so it winds up around $.12 per month.
Keep an eye on these and see what happens!
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