The Morrisian Indicator

Well my vacation is over and this is my first blog post since my vacation.  I now have 5 full days of complete data on my indicator and am ready to share the results.  Out of 20 stocks that I am following 14 are above the center line and in every case are trending downward towards the centerline.  Six stocks are below the centerline are also trending downward.  Three stocks: CIE, VX & ODP have seen excessively large spikes in volume as defined by my indicator.  Two stocks: CIE & MRO have crossed the centerline in both directions, above and below.  CIE is too cheap to trade right now.  It is essentially a penny stock with its last price at .98 cents per share.  MRO is resting on its 200 day moving average with a bottom tail that indicates the stock may go higher, but the current market environment seems to be down so it is too risky to trade MRO to the upside.  My strategy for this position is to see MRO drop between the 200 day moving average and then run-up to touch that moving average before bouncing off to the downside.  The stock MTW is barely above the centerline, registering in at just .03.  Should this stock drop below the centerline, especially on heavy volume and the price itself goes well below the 20 period moving average it may well be worth buying puts or outright shorting this stock since the price is still well above the 200 period moving average.  In this case one should use the 20 period moving as a possible stop loss when one enters a position.  This is all I have to say for now.  I’ll try to be back tomorrow with more information and explanation as to how I intend to play this market.

 

EC Morris

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