Thursday, December 30, 2010

12-20 sell signals starting to appear

Looked at about 20 large cap companies and CCI has dropped below +100 for JPM, PFE, ORCL, AMZN, AAPL, MSFT and GLW within the past 1-4 days.  This is one of the things I use as a "sell" signal.    Looks like January could get interesting if this trend continues and more stocks generate "sell" signals. 

Happy new year everyone.

Update 12-31:

The CCI is a versatile indicator capable of producing a wide array of buy and sell signals.
  • CCI can be used to identify overbought and oversold levels. A security would be deemed oversold when the CCI dips below -100 and overbought when it exceeds +100. From oversold levels, a buy signal might be given when the CCI moves back above -100. From overbought levels, a sell signal might be given when the CCI moved back below +100.
  • As with most oscillators, divergences can also be applied to increase the robustness of signals. A positive divergence below -100 would increase the robustness of a signal based on a move back above -100. A negative divergence above +100 would increase the robustness of a signal based on a move back below +100.
  • Trend line breaks can be used to generate signals. Trend lines can be drawn connecting the peaks and troughs. From oversold levels, an advance above -100 and trend line breakout could be considered bullish. From overbought levels, a decline below +100 and a trend line break could be considered bearish.

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