Some oversold stocks that are showing signs of reversal (from a scan using StockTA):
MRB....1.89
OPTO...1.25
TKO....4.72
ULGX...4.09
VGZ....4.76
IGPG...1.05
Posted by R1Man on :
I agree with TKO and ULGX, but the others...I disagree....especially on the gold stock. You should know that gold stocks are cheapest from march-may and highest from mid october-mid january. That stock will be dropping fast in the next few months.
I do like IGPG, but don't like the fact that its OTCBB....I would consider jumping in with $3,000 but if it was AMEX....I'd definately jump in with $7,500.
Nice picks though.
Posted by Who? on :
R1Man Of course you may be right about gold in the next few months, but right now the gold index is still in a general uptrend. So who knows what they'll do in the very short term. In fact, my latest scan includes a couple more gold stocks :
Of course, these are not buy recommendations, only a suggested list for those looking for ideas.
Posted by Who? on :
Because I've been posting lists of oversold stocks, it occurs to me that I ought to clarify my thinking on them. Basically, there are two types of oversold stocks. The first type is a stock that has been in a general uptrend and has become temporarily oversold for no apparent reason except that traders are taking some profits.Usually, unless there is a fundamental change (bad news)the stock will resume its uptrend. The second condition is a stock in a general downtrend, or even going sideways, with occasional rallies followed by an oversold condition. Unless there's a fundamental change (good news), the stock will resume its general trend after a short rally. While its possible to profit from either oversold condition, my opinion is that it's safer to buy oversold stocks that are in a general uptrend, unless there's some bad news.
Actually, my thinking was influenced by writings of Larry Williams,creator of the Williams %R, who advised buying only oversold stocks that were in a general uptrend.
I also should note that practically all technical scans are valid only for short swings of from 1 to five days, after which the results deteriorate unless there are some good news (especially in downtrending stocks).
I realize that most traders already know all of this, but there may be some out there that call themselves "newbies".
Posted by R1Man on :
I usually refer to holds of 5 days or less as day traders....
Hey, one stock that caught my eye last week and I jumped in with $7,500 at $4.545 was UBET. This on should move back up to $5.70 in the next few months. If you follow the charts on it....you will see that I will be right.
Posted by Who? on :
R1Man Even with the small loss today, UBET has done well for you. It does look like it may have started a reversal upwards. Good luck with it.
Posted by macdrsirules on :
Who I agree with your methods of finding oversold stocks in uptrend. Really works.