It has been quite some time since I posted a discretionary (non-system) setup. I was trolling this evening for some bullish looking pullbacks, as I’m considering some long exposure. This particular stock meets some system entry requirements.
The PPT ranks Auto Parts Stores 10th out of all industries, based on the technical score.
The PPT ranks AZO a buy based on the hybrid score of 3.03
I like the volume that came into AZO after the earnings release, which showed a 9% increase in quarterly earnings. I also like the stair-stepping the stock has been doing since the gap-up on earnings.
While I try not to think about the fundamentals, it makes sense intuitively that more people would be squeezing every last mile out of their vehicles, before purchasing a new(er) one.
A 1.5 to 2.0 ATR(10) stop would fit my style and risk profile. I would want to sell when RSI(2) rises above 70 or so, or after a couple of back-to-back up days.
Discretion! Your neural net is a superior instrument! Now, quit that day job and spend days jumping at every tick, evenings overanalyzing your rationalizations lol.
That’s good stuff mana!
I definitely love the fact that the systems bring the picks to ME, rather than me having to search them out, then overanalyze…lol..
Hmmm… Means I should start checking GT on my watch list!
Good stuff ‘Shed!
ZM
I saw that set-up too. Glad to see I am not alone in my thinking.
AZO hit one of my screens nice pull back.
I was hoping to see a little more technical analysis of the president’s speech here –
(winking smiley face)
I love the Bamboo’s picks as of late because they have been great to fade. As much as I like AZO, I will short it to the 150 area. Perhaps the Bamboo needs to add a VWAP to help substantiate its picks. The longer this bounce runs, the weaker the volume seems to be getting in both camps. Hell, if it weren’t for programs and time frames, we could probably stay in bed or be on vacation until the quarter ends.
Just For- as I’ve stated numerous times, the Bamboo was/is an experimental system which I’ve published here primarily to provide opportunities to discuss the psychological component to trading systems.
We are in the process of re-vamping the entire system to pull it out of the experimental phase in hopes that it can be developed into a legitimate system.
One more thing. Unless the Bamboo is just breaking down (which is possible), it is at the lower end of its historical win/loss percentage. I expect that going forward it will soon have another streak of winners, but as I’ve said, it needs work, so nobody knows for sure.
AZO is only a ticking bomb (too high evaluations, look at its monthly also). Short term play until market as a whole rises is ok.
In certain it’ll be like those educational stocks, which “rises with the expectations that people will rush to college because they can’t find a job.” enough said.
Success! I would take half off the table tomorrow, with the stop brought up to breakeven.
Yeppers Wood, it got that one right. I did fade it in the mid morning til early afternoon for a nice scalp though :). It seemed to be on track with every other stock, and most certainly has been in this 2 day time frame. Right now I am 70% vested on the short side, mainly in FAS, FAZ and heavier in SPY 78 puts. The leveraged funds are acting like crap as we all know. I was however able to obtain (by means of options) a nice average cost basis of 1.30 on these puts however. Sounds like a doom and gloom day is on the horizon for banks, at least in the immediate short term. the PPT (not to be confused with Fly’s) has found numerous ways to keep up the window dressings however. I will be happy to add some SRS on any weakness outta CRE.
Happy Trading and congrats to the BB!
JFF