About the Author

Stephen Oakes is an experienced financial titan from New York who brings Wall Street to Main Street. Over the past 11 years, he has developed and tested the renown, Oakes Momentum System, which uses a unique constellation of technical indicators to find timely buy and sell points. He holds an M.B.A. in the United States (New York) and has studied internationally at the Reims School of Management in France.

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I got nothin’

January 30th, 2007 • Related • Filed Under

Well, this morning I went through my typical approach and found no stocks that met my indicator and breakout criteria.

Oh well…better to leave money in cash than to force a trade ;)

There Are 9 Responses So Far. »

  1. Comment by ku4a on 30 January 2007:

    Amen. Often, for me anyway, the best trades are the ones I don’t make ;-).

  2. Comment by Stephen Oakes on 30 January 2007:

    So true. Are you looking at any plays right now?

    Just curious…

  3. Comment by ku4a on 30 January 2007:

    Being unable to resist playing biopharms from time-to-time, I got some ACEL today. The FDA news seems pretty good. After a huge pop that I would not have been willing to chase, it settled back down to where it is only up a few pennies on the day. My entry was 1.74.

    I don’t generally pay much attention to technicals, so you might find the chart is not that attractive. Looks like it has been in a base for quite awhile. Today’s volume is probably enough to qualify as a breakout, though

  4. Comment by Stephen Oakes on 30 January 2007:

    What is your investment time horizon on ACEL? I can see why you were patient because on the 10-day hourly the “gap” needed to be filled.

    I had my fair share of problems with penny stocks. It is almost impossible to do any kind of technical analysis on them because they are so volatile and subject to reversing course on you FAST. I don’t need the intraday stress. I get enough of it here at work ;)

    Find me something $5.00+ and I’ll be here for you. Best of luck on ACEL!

  5. Comment by ku4a on 31 January 2007:

    I will “wing it” on ACEL and see what happens.

    A large portion of my capital is always in “value” stocks, and I will admit to sometimes combing the 52-week low list looking for ideas. Six I looked at last night are: DGX, HBAN, HMA, MOLX, MOT and PGR. I don’t own any of these and may not buy any of them, but will watch for at least awhile.

    All of these have warts, of course. DGX has been hit on the loss of a major contract. HBAN is not the world’s greatest bank. All of them have reasonable PEs, and I think their woes may have been discounted in current prices.

    MOT had a big move yesterday on news of Icahn taking a big stake.

    These probably aren’t of interest to a technician, but I thought I would point them out to any other “bottom feeders” like me :-).

  6. Comment by Stephen Oakes on 31 January 2007:

    Ku4a,

    Well, actually your stocks may appeal to a technician. Since you are already telling me that these are value plays that would pretty much cancel out the MACD and DMI factors.

    On the other hand I can look for divergences on all time scales for you. Things are hectic here at work, but I promise to analyze everything by tonight and I’ll see what I can dig up :)

  7. Comment by Stephen Oakes on 31 January 2007:

    Ku4a,

    ALL ANALYSIS IS ON ONE YEAR WEEEKLY CHART

    –DGX–
    May fill the gap up to $60+, MACD just about to cross into positive territory but the stock will not move higher until DMI follows suit. My feeling is that we are bottom-feeding for just a bit longer. Next two months will be big and I would be buying share above $54.

    Overall: Good find. You should be safe here.

    –HBAN–
    Breakdown from a false “bullish” breakout in November ‘06.

    Overall: Not the right time to pick the bottom, but you could manage the risk by placing your stop loss at $22.50 to avoid a collapse from it’s one-year consolidation period.

    –HMA–
    Place your stop loss below $19/share. Not very bullish on this one until the stock can prove otherwise by breaking and holding above major resistance at $21.50

    –MOLX–
    Bottom line..this baby needs to lift above $30/share on good volume. Otherwise, it will suffocate underneath major resistance and drift lower. Be patient and wait a little longer for this to bottom.

    –MOT–
    Must stay above $19/share. If support is broken and the stock trades lower than the above mentioned price, liquidate immediately and wait for the MACD and DMI to converge on the weekly charts.

    –PGR–
    Great play and probably the strongest of the bunch! Here, I found a positive divergence with RSI and MACD. I believe this stock will “pop” to the upside soon, within two months’ time.

    I believe you have jumped in at the right time ;) Now hang on and watch your money grow. Place a stop loss just below $22/share.

  8. Comment by ku4a on 5 February 2007:

    Stephen: Thanks for this analysis. I am back in the office today after being away awhile due to some health issues. I will review your excellent work as time permits.

  9. Comment by Drugstore on 29 March 2007:

    The FDA is corrupt. Look at all the money they spend on campaigns to rush things through. They own the presidency and most of the congress and senate WBR LeoP

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