TheChartGuru picks for 09/30/05

[TheChartGuru]

These are about to explode from the OVERSOLD pressure cooker:

VION
OWENQ
CURE
GNVC
CDSS
ALOY
MBEU
HBSC

The Guru has spoken

[JimJeep]

Thanks TCG... I'm in CDSS & MBEU.

[TheChartGuru]

good picks there Jim

The Guru has spoken

[RAYMOND]

I sold off CPST before it started to take-off yesterday to buy CURE, so I hope I can make up for my loss. Any idea of a realistic sell point for it?

[JimJeep]

TCG, I'm reading Toni Turner's new book that you recommended. I am learning and enjoying it. Thank you for all your input,it has me getting into the charts.

[paydabill]

Do you use a stock screener to make your picks? If so who?

[KJ]

Hey Jim, I know what you mean, I picked up the book the other week, I'm trying to read a little every day, I'm finally to the chapter of "The Art of the Chart," definitely interesting stuff, but a lot to remember! But hopefully it helps decode a lot of charting techniques.

[JimJeep]

KJ, I try and read some everyday too. I found some good free charting on New York Times web site. After you input a ticker symbol,hit charting, then you can use the drop downs to check all kinds of stuff. :wink:

[reed]

Guru, thanks for your picks this week...I hopped off the train on SNAK and HA, and put 500 bucks in my pocket...your wisdom is always appreciated. Looking forward to next weeks picks...

[TheChartGuru]

Way to go Reed. You may have hopped of both a little early, but a profit is a profit !
I'm going to be screening stocks over the weekend so I'll post them by Sunday. I'm going to give you one now that WILL go up Monday. That's OWENQ. It closed today with a beautyful Harami Cross. $$$$$$$$$$

BTW Paydabill, I use TC20000 for my stock screening and streaming quotes and charts.

The Guru has spoken

[reed]

Thanks guru! I figured that I got out a bit early, but I was looking at the resistance on HA, and wasn't sure if that would ever break with the state of that company...and I was happy with what those two did over a day and a half. I'll look into OWENQ...thanks for the heads up...because I haven't learned about those types of signals yet. Still learning...

[Madmoneymaker]

Thanks Guru... I went thru your 9-29 list yesterday and decided to pick OWENQ I got in at 3.49 friday morning. This really makes a bad market fun to be in... 8) all your posts are appreciated as always thanks!!

Nick

[JimJeep]

TCG, Whats the crystal ball show on CDSS & MBEU. MBEU is up to .68...do you think it will hit .75? Thanks :wink:

[TheChartGuru]

They both look very good. I still own CDSS and it's in that OVERSOLD pressure cooker. MBEU moved up a little Friday and has a headstart on CDSS. I'll most likely buy MBEU in Monday. MBEU can go to .90

The Guru has spoken

[Woobie479]

TCG if you don't mind me asking, how high of a pop is CDSS looking to have?
Also do you foresee the gap being filled at all for INCY. It has already started to regain some momentum.

Thanks for all the great picks!

[jm2552]

That's OWENQ. It closed today with a beautyful Harami Cross. $$$$$$$$$$



CG, I see the indecision indicated there! However, are you concerned at all about the gap in the bands being so large?

Also, as an aside, the Harami cross appears on the 3 month, but not at the end of the intraday. Is that normal? Just a relative time perception?

Thanks, btw CG, I'll be looking to test out Scottrade on Monday with OWENQ!

[TheChartGuru]

Looking at INCY, Friday it formed an inverted hammer. The Bears pushed the stock down and it closed lower. I don't like stocks that gap down this much. It may consolidate here or may go lower. It has to close above $5.15 in order for INCY to possibly begin another uptrend.

As far as CDSS, it may not "pop" 10% in one day, but it may move 10% in a few days. It has resistance at .70.

I like to use 3month/daily and 10day/hourly charts. Owenq on the 3m/d, you can see the support around $3.50. It bounced from that level Friday, forming a cross(tug-o-war) after several red candles(bears). So the Bulls stepped in on Friday. The BB widen because OWENQ started to descend. As it consolidates or begins to move up, the BB's will begin to close. One of the indicators of an oversold stock that I use is to scan for stocks that close below it's lower bollinger band. OWENQ has closed below for 8 days! It's way oversold! I expect OWENQ to be around $5 in a week or so.

The Guru has spoken

[jm2552]

CG, thanks for that explanation of the BB. Actually, your's was clearer than the books. I was also looking for an oversold indicator so your comment is very helpful. How though, would you "scan" for that condition (closing below the lower Bollinger)? Other than looking at chart after chart is there some software that scans for certain conditions? I realize this may be a pretty basic question, but who better to ask than the expert? :D

[TheChartGuru]

Jm, that's exactly what I do. I look at EVERY chart of every stock, with volume over 100000, that are betweem .50 and $5. I look at the bollinger bands. I look at the candlesticks. Is the stock uptrending or in a down trend? I look at the volume. Is it increasing or decreasing? Is the price near its bottom linear regression line? I've done this for years, so I have a "feel" for the charts now and can skim through them quickly. I then enter my stocks in my watchlist then I wait until 9:50-10:15 to watch what they do. Since I only watch the oversold stocks, I like to wait until the stocks turn "green" in my watches. That means that a stock turns positive(it's actually up) and wait for it to hold "green" for a few minutes. If it holds green and it hasn't moved up more then,say, 5% I'll flip back to it's 3 month chart, and if it looks good to me, I'll buy it.
You'll notice that I only post a handful of stocks. I call these my "pressure cooker" stocks. They are so OVERSOLD that they have to explode any moment. THese are the stocks that meet my criteria out of the hundreds of stocks that I look at every night. Hope this helps.

The Guru has spoken

[jm2552]

Yes, VERY helpful. Watching OWENQ now to see if there's a 10:00 pullback. But, already up almost 4%. Let's see...

[optimus25]

You've got a good strategy there TCG. Calculated risks...I like it. I wish I had more time to devote to your type of strategy.