Presentation on theme: "Proven Money Making Tactics Robert Rubin February 21, 2007 Copyright 2007 All Rights Reserved New York Investing Meetup"— Presentation transcript:
Proven Money Making Tactics Robert Rubin February 21, 2007 Copyright 2007 All Rights Reserved New York Investing Meetup http://investing.meetup.com/21
Buy Momentum Stocks With High Short Interest Must meet three criteria – –Above 200-day moving average for at least three months –P/E > 50 –Short interest > 15% of float Short squeezes keep price rising Violates fundamental rules, but shorts lose by fighting the market Use Big Charts (Big Reports - Stocks With Largest Short Interest) BIG a good example –Up 86% in last 8 months –20% short interest, P/E 52.7
Buy to Fill Gaps Must meet three criteria – –Above 200-day moving average for at least three months –Market cap at least $1B –Price fell 5%+ in one day Probable over-reaction to negative news –Make sure no crisis, scandal, etc. Gaps up 5%+ work too, but less sure Gaps tend to be filled over next few days/weeks Use Big Charts (Big Reports – Stocks With Largest % Loss In Price) CAT is an example: –10/19/06 close 69.02; 10/20/06 close 59 – a 14.5% loss –10/26/06 close 62.35 – a 5.7% gain since 10/20 –Caterpillars earnings shortfall temporary
Buy Splits Prices usually rise immediately after split announcements –Buy ASAP –Get free split alerts by e-mail at http://www.investmenthouse.com http://www.investmenthouse.com –Check your brokers site for intra-day announcements SSI an example: –01/08/07 close 19.75 –01/09/07 announce 3 for 2 split at 6:00 AM –01/09/07 close 22.03 – an 11.5% gain Prices may drift further up – strong companies
Buy (or Sell) Stocks Bouncing Off Their 200-Day Moving Average The 200-day moving average is a critical price for both support and resistance Prices test the 200-day moving average and often pull back, continuing their long-term trend –May be the bottom of a price decline –May be the top of a price rise Use http://www.stockfetcher.com/stockdb/fetcher for $8.95 per month (150-day MA)http://www.stockfetcher.com/stockdb/fetcher Or look at stocks that cross their 200-day MA and wait to see if they bounce back JNJ, UPS, WDC recent examples
Buy First-Time 52 Week Highs Sell First-Time 52 Week Lows 52 week highs signal an up-trend, and 52 week lows signal a down-trend Large profits follow the first 52 week high or low Use Big Charts (Big Reports – Stocks Hitting New 52 Week Highs or Lows) and then check the charts HMC is an example: –02/14/2007 close 40.78, a first-time 52 week high –Look at two-year charts
Trade Short-Term Trend Reversals Must meet four criteria – –Trading at or beyond upper or lower Bollinger Band –W%R signals overbought or oversold –One trigger day when opening and closing prices are similar, and both are near the bottom (tombstone doji) or top (dragonfly doji) of the days range –One confirmation day when the range between opening and closing prices includes that of the trigger day, and prices fall (engulfing bear) or rise (engulfing bull) Use candlestick charts to see dojis and bears Use http://www.stockta.com to screen for dojis and bearshttp://www.stockta.com Stock or options for short-term profits On 2/16, DRS near lower Bollinger Band, dragonfly doji, oversold W%R – confirmation to follow?