As explained in the manual, our automated alerts as only endowed with bare minimum intelligence. Fundamentally, they should be considered as something that just draws our attention to a stock's chart. A quick chart study not only gives us the much needed safety check but it can also present other possibilities. Thus even after an alert has been open (i.e. last two digits turned to 00) it makes sense to check out the charts for opportunities.
Sometimes, as shown in the example here, some alert can lead to executing the exact opposite trade.
Keep in mind that blindly trading our alerts with good odds still leads to consistent growth of capital over time, but a little human intervention can enhance the performance greatly.

This positive(buy) alert was issued on AKS at 3:30pm yesterday (9/14). A quick glance at the Intraday chart shows us that it is not a safe trade to take. The turnaround of the Pink that has triggered the automated alert is not concrete. The fast oscillators definitely indicate downside. The Blue oscillator is very similar to NASDAQ Composite's oscillator. But it is clear that the Blue hasn't had much correlation with the price recently. This means End-of-Day oscillators are significant for this stock.
And very importantly, from the bottom left channel we can see that the price has been drifting lower along with the Intraday Model (brown) below the Daily Model (gold).
Does it mean that the Daily Model is due to turn around?

To find out if a longer scale reversal is heralded by the downward drift of the price, let us check the End-of-Day charts.

Just like the Blue Oscillator in the Intraday, the huge Black Oscillator hasn't had much correlation with the price, but the Pink has and with a magnitude of swing close to 20%, it is very significant. Once again, this oscillator is very much resembling the End-of-Day Pink of NASDAQ COMP which was discussed in the previous blog.

So though the alert is for a buy, the stock looks ready to slide. And indeed it slid opening on 9/15 over 4% down. Steadily drifting down through the day despite the swings of NASDAQ, AKS closed on 9/15 at $13.7 a full dollar or 6% lower than the entry price of $14.57.

Chart this alert had drawn us to thus delivered profit from a trade in the opposite direction. At the same time, our system also delivered profit from an alert based overnight trade of RFMD (short) and roundtrip trade of ADSK (long) today among others.

The markets have opened September with a bang and NASDAQ was trading over 2.5% up in the morning session just as our Composite Index charts had indicated yesterday!

Before we get to today's NASDAQ charts, here are 6 round trip trades our automated alerts(entry and exit) delivered since yesterday (8/31). There are three buys as seen from the positive alert numbers and three shorts. To learn more about alert numbers, visit this blog or check out our manual.

No.  Ticker          Alert                Entry Price        Entry Time      Exit Price       Exit Time      Profit %

1.     STMP     56508184513        $11.05              11:40               $11.25           15.53            1.8%

2.     AMKR     62316314911        $5.23                10:28               $5.29            12:00(9/1)      1.1%

3.     CRNT      79912142204       $8.55                12:58              $8.75            10:25(9/1)       2.3%

4.     RFMD     -54008206007        $4.9                  14:07               $4.85            15:07            1.0%
 
5.     ATML      -72811164206        $5.87                14:09               $5.79            15:39            1.3%

6.     BBY      -54507074404         $31.65                14:10              $31.38           14:57            0.8%

This performance is from blindly following the alert. As we have seen in an earlier blog entry, the performance can be improved by fine tuning the automated alert entries and exits by consulting the charts. You will notice that the alerts listed above have odds (i.e. TR*PR) above 3.

Now let us look at the NASDAQ Composite charts. In the Intraday chart below, we can see that the Pink oscillator has surged and its magnitude has been redistributed into two components: Violet and Green. Remember that Green had disappeared yesterday because of lack of magnitude.

And here is the End-of-Day chart from yesterday. The top left panel has been zoomed in to show the upward crossing point.

From the charts above, you can access the movement of the market for the future. Keep in mind that the faster oscillators have immediate impact but the Price/Index is always the sum of the oscillators and the indicators.

In a month, our service delivers well over 200 round trip alerts.
By using the Promo Code: FALL2010 you can subscribe for just $49.99 per month.
Plus there is a 30-day risk free trial for you to get to know the system and test it out! SIGN UP NOW!!

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In the chart below from 3:45pm on 8/24, we see that an automated potential short sell alert has been issued for Autoliv Inc (ALV). 

On a day that Dow has sunk over 200 points and NASDAQ composite down close to 3% (Yahoo! Finance report), let us examine a profitable short sell alert.

Let's take a look at a quick round trip short sell alert from this morning (08/02). It's always interesting to discover profitable short trades on a day the NASDAQ Composite is over 1.5% up.
Stamps.com Inc (STMP) had an automated potential short sell alert issued this morning at 10:15 am as shown on the time-line at the top of the chart. In the chart below, the alert and price on the title of the bottom right panel.
Before getting to the figure, let us quickly check out the alert number itself.
The alert number here is -57808213514. "-5" indicates it is a short alert of type 5.
"78" tells us that the trade ratio (TR) for this automated strategy is an overwhelming 7.8 i.e historically the ratio of good trades to bad trades is 7.8.
Next pair of digits "08" tells us the profit ratio (PR)=0.8 (i.e. ratio of  sum of profits made from profitable trades to loss in remaining trades as percentages)
The relatively lower profit ratio compared to a very high trade ratio indicates that we have been favoring faster exits for this strategy.
So despite the average trade duration of 1.4 days (indicated by the last two digits of the alert) we can expect quicker exit alert from this strategy if reasonable profit is made. An indication of what is "reasonable" comes from the average profit of this strategy which is 2.1% as given by the pair of digits "21".
The remaining pair of digits "35" tell us that 35 historical trades have been triggered by this strategy and the statistics given in this alert number have been accumulated over them.

Now check out the figure below. A quick note has been added to each panel about the oscillators in them. It is easy to see that this trade is rather safe.

The exit alert was triggered at 11:45pm, just one and a half hours later. Remember that exit alerts consist of all 10 later digits turned to zeroes.
The chart at that time is given below. The exit price is $10.78.
Now we can see that the fast oscillators on the top right panel have gone out of lower bounds. Since "reasonable" profit has been made rather quickly, the exit alert is triggered.
From the positioning of the other oscillators, it seems like there might be future opportunities for safe shorting after the fast oscillators finish their upward push.
When we consider such opportunities, we should also be keeping in eye out of potential crossing points that are imminent between the dominant oscillators!

 
Thus even blindly following the alert would have yielded a profit of 1.64% in around 90 minutes!
Pretty sweet considering it is a short trade on a day the market is up!

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Comtech Telecommunications (CMTL) was down more than 30% yesterday (7/21).
The stock was hit hard by this bad news: http://blogs.barrons.com/techtraderdaily/2010/07/21/comtech-shrs-crumble-after-it-fails-to-win-army-contract/

Our system had a short alert issued on CMTL towards the end of day on 7/20 as can be seen from the chart below. The alert was issued as the dominant Black oscillator turned. There were all indications that the stock would have a downturn. But as you can see from the digits of the alert number, our automated strategy had an average profit of 2.3% over 3 trading days! The 30% was a nice gift for those who took that alert!
Chance meeting of fundamentals and technicals leading to profit.
We're definitely better off with the disciplined approach for reliable, repeatable profits from the oscillators and alerts than such windfalls.

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The sample trade for today is on ticker DD. I am also experimenting with Fireshot plugin for Firefox to explain the figures better with markets and pointers.
In the figure below, we can see the alert of type -6 (short-sell) that came in at 3:30 yesterday (7/15).
We can see that the alert has been triggered by the downward turn of Mid Pink oscillator (top left).
The Slow Black and Red oscillators haven't clearly turned upwards yet (bottom right).
In the bottom left panel, notice that the Daily Model has flattened. Also we can see that the price hasn't moved higher recently under the influence of Pink
as it has been offset by the downward move of Black and Blue. Remember that price is sum of all the oscillators and models. Though
the fast oscillator is rising, we can see that their amplitude is not much.

We can see that the exit for this alert came in at 10:45 EST today (7/16).
From the figure below, we see that all the oscillators remained consistent. Black oscillator at its turning point came under the influence of the strong downward move of Pink. Remember from the manual that the oscillators are most vulnerable at their turning point since that is when they have the least momentum. The exit price is $36.46 so the profit was over 1% for a trade duration of less than 2 hours!

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Here's an interesting example of the consistency of our oscillators from today. Check out the right hand portion of the intraday chart of WFR at 9:45am shown below. We can see from the bottom chart that Blue oscillator is clearly dominant and now is showing signs of turning down. If we examine the price (not shown here), we can see that it correlates well with this oscillator. Red which is the sum of Black and Blue has already started the downward journey under the influence of Black. The residue also has started its downward journey. The price is $11 in this chart.

Now check out the charts later in the afternoon.

The dominant oscillators have continued their downward journey bringing the price to $10.69. That is profit of 2.8% from a short sell on a day overall markets are up over 2%.

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