Tools: When to sell?

[chrisd77]

Gun,

Thanks for the further information. I'm not seeing your 10/5 example for CTSH (I assume), but I do see it on the 12/27 and 12/31 example. The MA lines on MACD is what I'll be following as they seem to be better indicators.

Couple of more questions if you don't mind. Are you using the EMA or the SMA on your Scottrade charts? And lastly what time period do you use. I've been using 3 months, but I'm wondering if that's 2 long of a period (I think that's another Rule 1 thingy!).

Thanks again for your time.

[Gunnski]

Opps. Sorry I meant 11/5/07, the day before the hugh drop on CTSH.

For simplicity, please look at a Yahoo chart. Use the new Beta Chart. SMA(10), Stoch. 14, 5 or (21,5) and MACD 8, 17,9. You should see the sell triggers clearly on 11-5-07. Use a line for your price not, candle, H-L-O-C, etc, use the line for price. You will see it pierces the SMA(10) in a downward fashion.

I like to use a 9 month chart to scan. I then use a 1 yr & 2 yr chart to view long term trends, piviot points, support & resistance etc.

I have messed around with both EMA and SMA. I currently use a SMA (simple moving average). I think EMA is more qualitative, and it less choppy (whipsaw like). I do use a scan looking for EMA(13) crossing over in upward trend over EMA(50). I like this set up alot for finding stocks that are about the run up. I use StockFetcher to run several scans, like this one.

Re: charts. The time frame is up to you and what type of trader/investor you are. When I day/swing trade, I use 1 min, 5 min, & daily charts. These are of little use for a Rule 1 investor. As they show short term trends/movement in price.

Hope this helps. Try the chart school at Stockcharts.com, or Google Dorsey Wright (I invested in their ETF named PDP), check out their free on line school, and podcasts on Wed. Very insightful.

I highly recommend the daily videos from Inthemoneystocks.com. If you want some very good info. daily for free, check out their U-Tube vides & run through their archived videos. They are all about 10 minutes each. Very good!

The final suggestion is take a look at Brian Shannons AlphaTrendsBlogspot.com. Check out his videos and blogs.

I guarentee you will be a better investor, if you check these things out. Sorrt they are not clickable, but I would Google them and save to your favorites. You will use them alot! Hope that helps! Now I need to go handicap Santa Anita if the rain stopped..$

[Gunnski]

Chris,

This is a R-1 business. I have made good money trading this one since Nov. 2006.

If you can. Try a Yahoo chart for CRDN. Check out a 1 yr. chart. With the set ups described above. Then try a 2 yr. chart. Can you see the buy & sell points with the tools? Mainly, the sell on Oct. 10, 2007! Do the tools work? I'll leave that up to you.

Remember R-1 gives us a great foundation to learn and grow. There is no perfect way or black box. You have to make the trades and hope they turn a profit. Not all will, I don't care who you are. I do not know this for a fact, but I believe Phil wants us to expand our horizons & add on to what we learned from R-1. It is kind of like getting pushed out of the nest and forced to fly into the big, wonderful, & unknown world on our own.

[chrisd77]

Gun,

As always you've been more than helpful. I continue to learn, as you point out, and charting is something that I need to dive into much more. I'll check out the things that your mention.

I've got CRDN on my watch list. What worries me about that one...is how does it do with the changing of the government in 08? Obviously there's lots of time between now and then to make money.

Thanks again for your time (and I'm sure I'll have more questions!)

Chris

[AJG]

Hi, where you say 'each indicators shows a downward crossover', do you mean when all 3 show a downward crossover at the same time? Like when to buy - thanks

[zip_zoolander]

If the 3 technical charts give you a sell sign, would you sell all of your positions or just a portion of it?

Here is my situation,

have 540 shares of Caterpilar (CAT). I am up 27%. I do not need the money right now.

CAT is trading around $82 and is getting very close to its "fair value calculation ($78)" based on S&P Stock report that was released on Apr 22 and $92 value given on quicken.com. When the sell signal come, I am debating if I should sell some or all of my shares ..

any thoughts?