Overextended

Daily Stocks: Algorithm & Formula Enhancements

Feb 27

Over the passed several weeks we have made significant changes in our algorithms and formulas for both Daily Stocks. The result is a lean and mean technical analysis engine that has increased accuracy while finding more stocks for a more powerful list of potential trades. The change in design is non-existent, but there will be significant changes in the results presented.

The following is a sample of the enhanced features and changes made in our algorithms and formulas for Daily Stocks:

- Updates to the app now happen at 5:00 pm ET getting you the scans you need, sooner.

- Improvements to the Japanese Candlestick formulas providing increased accuracy of the scans, which in turn finds more stocks.

- Enhancements to the Overextended stocks algorithm, providing a better list.

You can download Daily Stocks from the App Store or by clicking here.

Market School: Technical Indicators 7 – Stochastic Oscillator

Feb 15

The Stochastic Oscillator is a momentum indicator designed to show the relation of the current close price relative to the high/low range over a given number of periods using a scale of 0-100. It is based on the assumption that in a rising market the price(s) will close near the high of the range and in a declining market the price(s) will close near the low of the range.

The Stochastic Oscillators are typically plotted as 2 lines: %K and %D. %K is the main (fast) line and %D is the signal (slow) line.

There are three types of Stochastic Oscillators: Fast, Slow, and Full. Slow Stochastic is smoother with less false signals.

USES

There are three basic techniques for using the various Stochastic Oscillators to generate trading signals.

Crossovers: 1) %K line / %D line Crossover: A buy signal occurs When the %K line crosses above the %D line and a sell signal occurs when the %K line crosses below the %D line. 2) %K line / 50-level Crossover: When the %K line crosses above 50 a buy signal is given. Alternatively, when the %K line crosses below 50 a sell signal is given.

Divergence: Looking for divergences between the Stochastic Oscillator and price can prove to be very effective in identifying potential reversal points in price movement. Trade long on Classic Bullish Divergence: Lower lows in price and higher lows in the Stochastic Oscillator; Trade short on Classic Bearish Divergence: Higher highs in price and lower highs in the Stochastic Oscillator.

Overbought/Oversold Conditions: The Stochastic Oscillator can be used to identify potential overbought and oversold conditions in price movements. An Overbought condition is generally described as the Stochastic Oscillator being greater than or equal to the 80% level while an oversold condition is generally described as the Stochastic Oscillator being less than or equal to the 20% level. Trades can be generated when the Stochastic Oscillator crosses these levels. A buy signal occurs when the Stochastic Oscillator declines below 20% and then rises above that level. A sell signal occurs when the Stochastic Oscillator rises above 80% and then declines below that level.

Track and use Stochastic Oscillators in your daily analysis in real-time with our iPhone & iPad apps.

Overextended Stock:SMA 200

Apr 12

A quick scan of yesterdays market for overextended stocks, specifically oversold stocks, SMA 200 via the iPad app Daily Stocks gives us the following lisT: FSLR, RSH, BTU, NFLX, NSM, NRG, BHI, and DV. For other scans like this and more please check out Daily Stocks on the app store.

App Update: Daily Stocks 2.0!

Apr 04

Our popular iPad application Daily Stocks has a new update out and there is a lot to be excited about. Probably the most exciting feature is the real-time charts. If you want to confirm a signal by checking it’s chart you will no longer have to wait for the end of a trading day to see it’s relevant charting data, the charts auto-refresh and are available intra-day. In addition to this the charts have over 40 new technical indicators that are extremely customizable, interested in SMA 50? That’s easy, interested in SMA 52, well we have that too, you can do this for all the indicators.

In addition to the customizable real-time charts the app is easier to navigate, has an updated watchlist which will give you each and every signal for the stocks that you are interested in, making your analysis process as efficient as possible. The Market Pulse page has also received a facelift, now offering an arbitrage directional forecast and market momentum. We really think you’re going to enjoy the effort we’ve put into bringing you a better, easier to use, product. Below you’ll find some screenshots that may interest you. You can upgrade or purchase Daily Stocks from the iTunes App Store.

Oversold Stocks with an Improving RSI

Nov 30

Market Scan for the iPad comes loaded with some great predefined scans. An examples is the “Oversold Stocks with an Improving RSI” which today brought back 15 matching stocks. The list below has some of the stocks in this predefined scans and the red X on the right denotes a stock in our Watchlist so that we can easily spot stocks that interest us.

[Click Screenshot to Enlarge]

LGND – Ligand Pharmaceuticals Incorpor (NasdaqGM) Closed at $11.73 +0.32 2.80%
MERC – Mercer International Inc. (NasdaqG) Closed at $5.93 +0.59 11.05%
NGA – Niska Gas Storage Partners LLC (NYSE) Closed at $9.68 +0.38 4.09%
NMR – Nomura Holdings Inc ADR America (NYSE) Closed at $3.30 +0.21 6.80%
OME – Omega Protein Corporation Commo (NYSE) Closed at $8.43 +0.72 9.34%
ORI – Old Republic International Corp (NYSE) Closed at $8.22 +0.57 7.45%
QNST – QuinStreet, Inc. (NasdaqGS) Closed at $9.26 +0.33 3.70%
SMG – The Scotts Miracle-Gro Company (NYSE) Closed at $44.09 +2.05 4.88%
VRTX – Vertex Pharmaceuticals Incorpor (NasdaqGS) Closed at $28.99 +1.66 6.07%

If you think this scan, and other scans like it would be valuable to you in your day to day trading strategy be sure to check out Market Scan.

Oversold Stocks – SMA 200

Nov 02

A list of stocks that are oversold over SMA 200 via Daily Stocks.
[Click to Enlarge]

Stocks that we found interesting: [Click Ticker to See Chart]
FSLR – First Solar, Inc. (Nasdaq) Closed at $47.23 +0.45 -0.96% Closed 151.2% below SMA 200
X – United States Steel Corporation (NYSE) Closed at $46.78 +1.45 -5.91% Closed 63.1% below SMA 200
WFR – Whirlpool Corporation Common St (NYSE) Closed at $5.78 -0.02 -0.35% Closed 62.8% below SMA 200
S – Sprint Nextel Corporation Comm (NYSE) Closed at $2.72 +0.23 -9.24% Closed 59.2% below SMA 200

Overextended Stocks: Overbought SMA 200

Oct 26

Here is a list of some Overextended Stocks, more specifically Overbought SMA 200, that you can find in our apps Smart Trading for the iPhone and Daily Stocks for the iPad. These are good to keep an eye on for a long-term outlook.

[Click Ticker to See Chart]
BIIB – Biogen Idec Inc 25.0% Above SMA 200
GR – Goodrich Corporation (The) Comm 24.1% Above SMA 200
VFC – V.F. Corporation Common Stock 21.1% Above SMA 200
GWW – W.W. Grainger, Inc. 14.5% Above SMA 200
BMY – Bristol-Myers Squibb Company 13.4% Above SMA 200
ORLY – O’Reilly Automotive, Inc. 13.1% Above SMA 200
AZO – AutoZone, Inc. Common Stock (AZO) 12.7% Above SMA 200
MCD – McDonald’s Corporation Common S 11.2% Above SMA 200
ED – Consolidated Edison, Inc. Commo 10.3% Above SMA 200

Overbought Stocks SMA 100

Oct 21

Earlier in the week we detailed some overextended stocks, Oversold SMA 200, today we’ll be looking at Overbought Stocks SMA 100. Again, these stocks were found via Daily Stocks for the iPad; however, they can also be found on Smart Trading for the iPhone.
Overbought stocks generally forecasts that the spread between the price and the moving average will shrink, in this case potentially bringing the price down. Being SMA 100 this is a long term forecast and as always you should look for other technicals, as well as fundamental analysis to decide the timing on your trade.
By clicking the OS (Overextended Stocks) tab in Daily Stocks and choosing your Overbought or Oversold SMA, in this case Overbought SMA 200, you’ll get a screen similar to the one below:

We’ll limit the list to those displayed on screen (The full list has 2 additional stocks), consists of the following stocks [Click Ticker to See Chart]:
GR – Goodrich Corporation (The) Comm (NYSE) 20.6% Above SMA 100
RRC – Range Resources Corporation Com (NYSE) 17.6% Above SMA 100
VFC – V.F. Corporation Common Stock (NYSE) 13.5% Above SMA 100
GWW – W.W. Grainger, Inc. Common Stoc (NYSE) 9.5% Above SMA 100
BMY – Bristol-Myers Squibb Company Co (NYSE) 9.5% Above SMA 100
ORLY – O’Reilly Automotive, Inc. (Nasdaq) 9.5% Above SMA 100
ED – Consolidated Edison, Inc. Commo (NYSE) 6.8% Above SMA 100
PGN – Progress Energy, Inc. Common St (NYSE) 6.4% Below SMA 100

Oversold Stocks – SMA 200

Oct 18

One long-term factor that we generally look at are overextended stocks, Daily Stocks for the iPad is a great tool for this because it let’s us look at Oversold and Overbought stocks over SMA 9, 20, 50, 100, 150, and 200. Today we’re looking at Oversold Stocks SMA 200. This generally forecasts that the spread between the price and the moving average will shrink. Being SMA 200 this is a long term forecast and you should look for other technicals, as well as fundamental analysis to decide the timing on your trade.
By clicking the OS (Overextended Stocks) tab in Daily Stocks and choosing your Overbought or Oversold SMA, in this case Oversold SMA 200, you’ll get a screen similar to the one below:

In actuality our list was a little bit longer however we decided to limit this post to the eight stocks that were displayed on screen. [Click Ticket to See Chart]

EK‎ – Eastman Kodak Company (NYSE)‎ 146.2% Below SMA 200

FSLR‎ – First Solar, Inc. (NASDAQ)‎ 133.2% Below SMA 200

ODP – Office Depot, Inc. (NYSE) 100% Below SMA 200

X – United States Steel Corporation (NYSE)93.3% Below SMA 200

NFLX – Netflix, Inc. (NASDAQ) 87.7% Below SMA 200

GNW – Genworth Financial, Inc. (NYSE) 85.9% Below SMA 200

BAC – Bank of America Corp (NYSE) 84.7% Below SMA 200

RF – Regions Financial Corporation (NYSE) 78.3% Below SMA 200