We spend hours each week developing new methods to extract money from the market. Since we have very few secrets, I will share our current efforts and track their progress over time. Recently, I asked Quazimoto to give me a current list of microcaps that have an upward 30 day trend but also have been severely oversold. An oversold indicator in this case is achieved by dividing the difference of yesterdays high over the last 14 days and yesterdays close by the difference of the extreme high and lows. This is very similar to the Williams %R indicator. Additionally, Quazi will weed out all stocks except those that show the price approaching or at potential support. Support and resistance are important for obvious reasons but the real importance lies in the fact that they give a trader a specific plan by using these areas as grounds to buy or sell. Anything that encourages “trader discipline” is worth throwing into the mix.
Quazi revealed three stocks based on yesterday’s action:
MFG - Mizuho Financial Group Inc
CYPB - Cypress Biosciences Inc
ORS - Orsus Xelent Technologies
Check out the charts below and you will see oversold stocks at or near potential support.
Keep in mind that we do not endorse any of these because no backtesting or any testing for that matter has been done. Let the support dictate your actions if you insist on trading these. ( I know we will). Set stops accordingly by using the advantage of a support line. If we have success over the next several days, you might just see Quazi add this to his arsenal.
None of these stocks will be listed in Quazi’s stock ticker but our results will be posted in a future blog…especially if we make a few $$ .