The Morrisian Indicator

I was hoping to write for this blog more than once a week, but here I am, about a week after my last post.  At this time I have at least a couple of things of importance to report.  First CIE produced quite a reverse signal last Thursday that helped me decide to exit my position on Friday.  I did so with more than a $300 loss.  FCX on the other hand has not produced such a signal and seemed to be headed lower, so I am keeping that position for now.  On Friday I have a new signal of some import.  AKS crossed below the centerline on my indicator on heavy volume.  When you look at the chart for AKS there is every indication that it will go lower still.  AKS clearly broke beneath support of a little more than 5 dollars per share.  The next support level is about 4 dollars per share.  I intend to enter a position in AKS using my paper trading account tomorrow.  I will discuss later exactly what position I took.  I also need to decide whether I should take a long position in CIE.  I must say however that I do not like taking opposite positions in the same sector, which is what I would be doing given that I am short FCX.  I notice that FCX has not yet broken below its 20 period moving average.  I am looking for this to happen to really make a profit on this position that will overcome my loss on CIE.  I do not want to compromise this possibility by going long CIE, at least until there is a better indication that FCX will be turning up as well.

Another interesting development from Friday is that the stock AMD went up for the second straight day on major volume.  The current position for AMD on my indicator is .97, a new high.  When you look at a chart of AMD there is a clear break above the resistance level of about $7.10 to $7.15 per share.  According to FINVIZ AMD is part of the Technology Sector.  When one looks at this sector using XLK as a proxy it is easy to tell that this sector is doing very well and is indeed wanting to bounce off its 20 period moving average short term.  Even though my indicator did not produce a signal as such, it is still very positive to have two back to back days of high volume increases for this stock.  I need to consider getting into a position using AMD tomorrow as well as AKS.  Let me just comment on one other thing.  I notice that the Stock MRO, Marathon Oil produced a buy signal a while back.  It produced a buy signal, but not on impressive volume six days ago.  Perhaps that is why I did not choose to enter the position.  four days ago the stock exceeded all prior highs on my indicator with a position of 3.  I could have entered the position then but failed to.  All I can say for now is that MRO keeps heading up.  Most recently it is at a position of 6 on my indicator  I do not like entering a position so relatively late.  If I had only gotten in when I should have I’d be making a lot of money now in my paper trading account.  That is all for now.  I hope to discuss my decision regarding AKS and MRO tomorrow.

 

EC Morris

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