SRP My comp entry- long

[ChartMan]

I like this chart.The characteristics that made me chose over others are this:
1. Every rapid fall and trough is followed by an equally rapid rise.
2. My fav indicators Velocity, CCI and TCI have all turned positive.
3. Phase turned around and Macd Osc. gone positive.
4. Macd Osc slope trend line broke the zero line exactly as the price turned up( interesting phenomena).
5. Macd just turning.
6. Peak volume suggesting "true bottom".
7. Positive volatility trend breakout.
8 Stochastics just risen off zero.
9. Enormous positive divergence on moneyflow.
10. My phase and macd EDS historically picked good entry points for this stock.( 8 out of 9 winners)
Check the entry dates:
13/8/96
13/10/98
26/05/99
06/10/99
24/02/00
01/12/00
18/01/01
27/02/01......Failure
23/03/01
Most of these picks followed a rapid drop, and selected soon after the bottom.There seemed to be no warning of the failure after the 27/02 pick...perhaps this was a target day for the MM's on this stock? Certainly results were acceptable, announced on the 20th. and not that far off expectations that would make the price tank 30%!

 

[darth trader]

Chartman,

it is very generous of you to share the reasons for your selection.

I like the cockpit idea that is shown in your AIQ screenshot.

Please can you tell me what AIQ means by ER and Velocity in more generic terms?

Thanks.

 

[ChartMan]

ER rating is something peculiar to AIQ.Each stock is analysed according to their "special" formula and the stock is given an ER rating, or Expert Rating". I am not over keen on their rating system, it has to be said,although it does have its place in the overall picture.
Velocity is a momentum indicator which measures the rate of change of price using least squares methodology. The indicator is calculated as the slope of the line that most closely approximates the data over the period of time specified.
Velocity is similar to the Price Phase indicator and is used in the same way to determine short-term changes in price momentum. Velocity cycles above and below the zero line as momentum shifts back and forth between negative and positive. When the indicator is above the zero line and rising, momentum is positive and is increasing. The opposite is true when the indicator is below zero and is falling.The calculation period is 21 days,(default) but I use 11.

BTW what do you mean by "cockpit idea"?

 

[darth trader]

Chartman,

it sounds as if velocity corresponds to the metastock function linregslope() which is a least squares fit to a straight line over a given time period.

By cockpit concept I meant the way that there are lots of icons for indicators with red and green lights /arrows down the side of the screen.

It gives a nice concise visual indication of what is going on without having to display too many graphs at the same time.

 

[Sharky]

Not sure if anyone saw this today, but Serco (SRP) was up 6.6% today to 462.5 mid price following this announcement this morning (nice pick Martin):

RNS Number:2017B
Serco Group PLC
28 March 2001

Serco Group plc ('Serco')

Awarded Major Road Traffic Management Contract


Serco is pleased to announce The Highways Agency has awarded it the #160m
contract for its national Traffic Control Centre (TCC) Project.

The Public Private Partnership with the Agency will improve the quality of
information available to road users by introducing technology that will assist
them in making travel and transport choices, thus resulting in a better match
between demand and road capacity.

The contract is for a period of 10 years and comprises a 29 month design and
build phase followed by a seven year seven month management and operation
contract.

A special purpose company known as Traffic Information Services (TiS) Ltd,
wholly owned by Serco, has been established to deliver the project. Halcrow
Group Ltd is supporting Serco with the provision of traffic engineering
expertise.

Commenting on the award, Kevin Beeston - Serco's Chief Executive said:

'The award of the TCC Project further adds to our expanding range of services
with the UK and overseas governments and specifically with The Highways Agency
in managing intelligent road systems and draws on our long experience in the
integration of systems and service solutions.'

- Ends -

Notes to Editors
Serco Group plc is an international provider of management services to
government and industry, covering a comprehensive range ofengineering and
support activities across many applications.

 

[ChartMan]

As part of a concerted effort in trying to pick a winner last week, I actually read up on news etc on a few companies, and I picked up on the fact that they had some good contracts.Not sure if that report was among them.
It should be noted that I usually never look at news/fundamentals when doing TA- rightly or wrongly.
If all goes to plan, myself and my son Dave may end up in the No1 and No2 spot in the weekly comp. Now that would be something........
PS looks like I closed my short too early(NXT).

 

[darth trader]

Well done Chartman!

I rarely look at fundamentals either these days as I believe that they are already factored in.

Keep up the good work.
Darth.