GGB - Stan Weinstien early stage two
First post for a while, been a long year.
Stan Weinstein wrote a classic investment book in the 1980's
Basically, it's based on recognising the rotation in the market between stage 1,2 3 and 4 - instead of inserting loads of waffle about it check out this link - the7circles.uk/stan-weinsteins-stage-system-1-charts-buying/
Stan’s general rules on buying are:
1. Check the major trend of the overall market.
2. Uncover the few groups that look best technically.
3. Make a list of those stocks in the favourable groups that have bullish patterns but are now in trading ranges. Write down the price that each would need to break out.
4. Narrow down the list. Discard those that have overhead resistance nearby.
5. Narrow the list further by checking relative strength.
6. Has volume at least doubled recently on the rally.
7. Put in your buy-stop orders for half of your position for those few stocks that meet our buying criteria. Use buy-stop orders on a good-'til-cancelled (GTC) basis.
8. If volume is favourable on the breakout and contracts on the decline, buy your other half position on a pullback toward the initial breakout.
9. If the volume pattern is negative (not high enough on break out). sell the stock on the first rally. If it fails to rally and falls back below the breakout point, immediately dump it.
So going by the above rules in relation to this stock I get:
1. General Market shows an uptrend.
2. The present best performing weekly groups are Technology Services, Electronic Technology and Non-Energy Materials – GGB is in Non-Energy Materials
3. Yep, got a list and will post the best as they come up to near stage 2
4. This stock has no overhead resistance nearby
5. Mansfield Relative Strength – relative to the S&P 500 the share price has shown better strength than the market. The sector has also shown relative strength to the market too.
6. Volume has more than double in recent weeks.
7. I have a limit order for 5.85 with a tight stop at 4.5, at half my proposed position.
8. TBC
9. TBC
So, let’s see how this will progress…
On a plus point the company actually makes money and pays a dividend and forecats look good.
Stan Weinstein wrote a classic investment book in the 1980's
Basically, it's based on recognising the rotation in the market between stage 1,2 3 and 4 - instead of inserting loads of waffle about it check out this link - the7circles.uk/stan-weinsteins-stage-system-1-charts-buying/
Stan’s general rules on buying are:
1. Check the major trend of the overall market.
2. Uncover the few groups that look best technically.
3. Make a list of those stocks in the favourable groups that have bullish patterns but are now in trading ranges. Write down the price that each would need to break out.
4. Narrow down the list. Discard those that have overhead resistance nearby.
5. Narrow the list further by checking relative strength.
6. Has volume at least doubled recently on the rally.
7. Put in your buy-stop orders for half of your position for those few stocks that meet our buying criteria. Use buy-stop orders on a good-'til-cancelled (GTC) basis.
8. If volume is favourable on the breakout and contracts on the decline, buy your other half position on a pullback toward the initial breakout.
9. If the volume pattern is negative (not high enough on break out). sell the stock on the first rally. If it fails to rally and falls back below the breakout point, immediately dump it.
So going by the above rules in relation to this stock I get:
1. General Market shows an uptrend.
2. The present best performing weekly groups are Technology Services, Electronic Technology and Non-Energy Materials – GGB is in Non-Energy Materials
3. Yep, got a list and will post the best as they come up to near stage 2
4. This stock has no overhead resistance nearby
5. Mansfield Relative Strength – relative to the S&P 500 the share price has shown better strength than the market. The sector has also shown relative strength to the market too.
6. Volume has more than double in recent weeks.
7. I have a limit order for 5.85 with a tight stop at 4.5, at half my proposed position.
8. TBC
9. TBC
So, let’s see how this will progress…
On a plus point the company actually makes money and pays a dividend and forecats look good.
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