Within this post, I am hashing out some process heuristics that will help identify opportunities within a Trade, Trend, Tail duration. I was reading The (Mis) Behavior of Markets last night, and Chapter X discusses the importance of identifying a trend within markets.
The book and subsequent chapter was the catalyst for me to spill some digital ink (Heisenberg phrase) on my process. I will add to the company-specific narratives with their accompanying charts throughout the day, as I read up on some of my favorites.
What did Buffet say yesterday?
” I don’t tweet; I’d rather read 10-ks.”
1. Identify whether the security is over its long-term moving average (240-250).
2. Identify the Relative Strength Factor, it being an ETF or use the SCTR trend line.
3. Using the Slow Stochastics (5,1), contextulaize the “money wave” parameters at 80< & 20> , as signals.
4. Use the ATR to step up stop losses and measure the move being priced in by the options market.
5. Use high volume securities only.
6. Gatekeeping through a review of a bottom-up approach to the narrative within the larger top-down view of the economy as a whole. Are correlation risks present in the underlying?
$ABBV : AbbieVie, Inc.
$BAC : Bank of America Corp.
$BW : Babcock & Wilcox, Inc.
$CME : CME Group, Inc.
$CSRA : CSRA ,Inc.
$DE : Deere & Co.
$DPS : Dr. Pepper Snapple Group, Inc.
$FLR : Flour Corp.
$FOSL : Fossil Group, Inc.
$KBE : SPDR Bank ETF : Relative Strength Factor = 85.3
$KRE : SPDR Regional Banking ETF : Relative Strength Factor = 83.0
$MAR : Marriot Intl. Inc New
$MTCH : Match Group, Inc.
$NOC : Northrop Grumman Corp
$NVDA : NVIDIA Corp
$OSTK : OverStock.com Inc
$RF : Regions Financials Corp.
$RH : Restoration Hardware (RH)
$SHOP : Shopify, Inc.