Stan Weinstein's Stage Analysis

[isatrader]

Kex

Hi Isatrader, Your previous post on Marine Transport is interesting...
It seems that Kirby Corp. (KEX) is in stage 2... not sure if a or whatever..
what do you all think?

Hi canikram,

Yes, KEX made a Stage 2 continuation breakout a few weeks back, and was highlighted in the US watchlist thread on the 5th April here: https://stageanalysis.net/forum/showthread.php?tid=14&pid=11913#pid11913

A few others have come up in the last few weeks including SSW and CMRE in Fridays scans, as both are attempting Stage 2A breakouts. However, neither meets the methods 2 times the last 4 weeks average volume requirement yet, but it is a good sign that there are multiple breakouts in the sector. But we need to see more volume coming into the stocks in the sector like is pouring into the oil stocks currently.

 

[soundmanshane]

Thanks for this, some of it's really useful. I've been helped to develop my own strategy which follows some on Weinstein methodologies, I see some similar stocks showing up, but I believe my method gets into the trend at a later stage.

 

[tradingolives]

New to this forum.

I am looking to see if how to set up the Mansfield relative performance indicator in thinkorSwim TOS?

 

[Daddybyday]

Hello, All,

New to both this forum and this board. Just been introduced to Weinstein, have ordered the book, and look forward to receiving it tomorrow. I'm sure I'll have lots of questions to ask (sorry, I"m not shy about that), but I'm pretty excited about learning Stage Analysis. It seems to be about what I'm looking for investing-wise, and why I came to this forum in the first place.

Thanks!

Tom

 

[Daddybyday]

First annoying question (and I haven't even read the book yet) (I did warn y'all). I'm reading about Weinstein on "Investopedia" and they talk about short-selling in stage 4. Has anyone used Put Options during stage 4 (I'm in a retirement account and can't short sell, but I can go long both calls and puts). I just wanted to see if anyone has, and how it went.

Thanks!

Tom

 

[Daddybyday]

Hello, Again, All,

Just beginning to read Weinstein, and was wondering, does he touch on issues like portfolio construction, asset allocation, and cash management?

Thanks!

Tom

 

[isatrader]

Hello, Again, All,

Just beginning to read Weinstein, and was wondering, does he touch on issues like portfolio construction, asset allocation, and cash management?

Thanks!

Tom

Hi Tom, the book doesn't focus on that part of trading, as it is mostly about learning the Stage Analysis method and its key components, such as Volume, Relative Performance versus the Market, Sector and Peers, Support and Resistance and how to apply the Weight of Evidence approach using the various Market Breadth indicators.

I'd recommend starting by reading the book fully, then read through this thread in it'd entirety as we had a lot of discussion about various aspects of the method , and there's some additional little gems like more modern interviews with Stan, and samples of the Global Trend Alert etc.

Once you've been through the thread, if you are still interested in the method, then please visit https://stageanalysis.net as this thread became too big on here, and so needed a whole website to continue it. You'll find every answer that you have on the method there.

 

[Daddybyday]

Already signed up on the stageanalysis.net forum, Isa ;-)

 

[Daddybyday]

Dumb question,

I'm looking through your charts, and I notice the you have a 4th indicator--the "Force Indicator." I haven't seen any discussion of it in Weinstein's book (possible that I missed it). I didn't see it in your buy checklist either (again, totally possible that I missed it). How are you using that in analyzing the stages?

Thanks!

Tom

 

[isatrader]

One of the key components of the method is Volume, so when I was first learning the method I found it useful to use Alexander Elders Force Index indicator to help to interpret the volume. You can find an explanation of what it is on stockcharts site here: https://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:force_index but I made a custom version of it that made a cumulative line instead of the standard indicator. Here's a link to how to do that: https://stageanalysis.net/forum/showthread.php?tid=24

It's not required for the method, but I did find it useful initially when learning the Stages.