Thursday, March 24, 2011

Public Storage sell signals

I look a 6 indicators to determine when to sell.  No single signal indicators is a sell decision for me, that's why I use 6.  By knowing these 6 items I make a consensus in my mind and decide.  They are:

  1. Barchart technical sell signal - I look for a 50% sell in the mid term indicators
  2. Trend Spotter (tm) sell signal - Trend Spotter (tm) is a computerized trend analysis system, developed by Barchart.com. The system uses a combination of wave theory, market momentum and volatility in an attempt to find a general trend for a specific market. Trend Spotter attempts to cut losers early and let winners run.
  3. Daily moving averages - Is the stock below its 20, 50 and 100 day moving averages?
  4. Recent price movement -- Has the stock lost 10% off its recent high?
  5. 14 day Relative Strength Index below 50%.  I also compare the 14 day RSI to the 9 day RSI to see the direction of the trend
  6. I run a 60 minute chart showing 20, 50 and 100 hour moving averages and a 14 day turtle chart.
Now I know this sound like a lot to do and if I had to compute all these in every decision I'd have no time for myself.  On Barchart I set up my portfolios to have these computed for me automatically and the charts are my default chart.  Just a press of the button does it all.

Now let's get back to why I'm deleting Public Storage (PSA ) from the Barchart Van Meerten New High portfolio.  First the chart:

It's obvious that the stock is in a downward trend.  Now let's look at the technical factors:
  • Barchart 40% short term and 50% midterm technical sell signal
  • Trend Spotter (tm) sell signal
  • Trading below its 20 and 50 day moving averages
  • Lost 4.97% from its recent high
  • 14 day Relative Strength Index is 44.61% and dropping.
On last reality check before I press the sell button is a 5 minute trading chart:


I'm not scientific but at least I have a discipline.




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