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In Search of Winning Stocks
This Week: Searching For MACD Breakouts 1. Searching For MACD Breakouts 2. Search Criteria 3. One Stock With A Recent Positive MACD Breakout 4. Disclaimer ***********************Our Sponsor************************* STRAIGHT TALK FOR TOUGH TIMES INDIVIDUAL INVESTOR Magazine puts the market in perspective... what stocks are coming back, when to cut your losses, where to find value. Subscribe for under $20: https://commerce.cdsfulfillment.com/ID2/subscriptions.cgi?IN_Code=I1WS21 ************************************************************ Wall Street City's Stock Search of the Week 1. Searching For MACD Breakouts The Moving Average Convergence-Divergence (MACD) is one of the most used technical indicators. It is an oscillator uses the difference between two moving averages, for purposes of the search - the 12 and 25 day moving averages, to calculate a 9-day moving average. The resulting 9-day moving average is then smoothed to form a signal line. A positive breakout, which signals a buying opportunity, occurs when the MACD crosses above the signal line. MACD Breakouts is a search strategy that screens for stocks which have had a positive MACD breakout within the past two days. Two criteria, 30-day Average Volume and Stock Exchange, are included in the restrictive mode to ensure that the stocks found by the search strategy have at least minimal levels of liquidity. Illiquid stocks may be prone to more volatile moves, reducing the accuracy of oscillators in predicting trends. Return on Equity (ROE) is included a final criteria, in the rank mode. Backtested results showed improved performance when this indicator was included compared to excluding any fundamental criteria. The reason for the improved performance is that stocks with strong underlying fundamentals are better positioned to sustain long-term upward moves than those that are fundamentally weak. The search strategy can be run on a daily basis and is useful for both active traders and long-term investors who are looking for potential buy signals. It should be noted that many technicians rely on a combination of several buy signals and a positive MACD breakout should be used as an indication to conduct further analysis, rather than as a sole indication to enter into a position. Investors can click below to see the current results. http://clyde.investools.com/T/A28.146.330.1.113719 2. Search Criteria Using Wall Street City's ProSearch tool, investors can build a search like the one below created by Wall Street City analysts to find stocks that have charted recent MACD breakouts. Indicator Mode ------------------------------------------------------------ MACD Breakout 12/25/9 Day Between 1.0 - 2.0 Volume 30-Day Average Between 250.0 - 99999.9 Stock Exchange ALL US MARKETS Return on Equity High as Possible Investors can click below to view screen results. http://clyde.investools.com/T/A28.146.330.2.113719 3. One Stock With A Recent Positive MACD Breakout Argosy Gaming {AGY} charted a positive MACD breakout 2 days ago after holding support near 23.50. The pullback was a rare one for the stock, which is up 32 percent so far for 2001, continuing a steady upward trend that started last summer. Investors who took the risk of buying last July have been rewarded with a 85 percent gain. Despite this material increase in price, AGY continues to trade at a discount to its projected growth with a PEG ratio of 0.79. Click below to view screen results. http://clyde.investools.com/T/A28.146.330.3.113719 ***********************Our Sponsor************************* Fundamentals Always Prevail: These 14 Stocks Will Prove It Since 1994, Alvin Toral's yearly average gain is a whopping 64%. His secret? "Fundamentals always prevail": booming revenues and earnings, reasonable P/Es, strong cash flow. He just said "buy" to 14 fundamentally-solid stocks. Get this FREE Report: http://www.investools.com/c/go/PFUN/WSCE-pfunTB29?s=S601 *********************************************************** 4. Disclaimer Wall Street City's Stock Search of the Week is published solely for informational purposes and is not a solicitation or an offer to buy or sell any stock, mutual fund or other security. The information obtained from internal and external sources is considered reliable, but has not been independently verified for accuracy and completeness. WallStreetCity, its employees, and/or officers and directors, may from time to time have a position in the securities mentioned and may sell or buy such securities. Trading involves risk, including possible loss of principle and other losses. Trading results may vary. No representations are being made that these techniques will result in or guarantee profits in trading. Past performance is no indication of future results. REMOVE ME FROM THIS FREE EMAIL LIST To be removed from the email distribution list for the FREE WallStreetCity's Industry Group Analysis Commentary, Stock Search of the Week Commentary, The Week Ahead Commentary and Updates simply click the link below and hit "Send" on the email that is launched. 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