Thursday, October 22, 2009

PerfCharts and Dumpster Diving

Glenn asks: Leisa, have you worked the Stockcharts "PerfCharts" into any part of your routine sector analysis?

Rather than answer in the comments, section, I thought it worth answering in a post. StockCharts is one of my favorite places in the world. My first technical analysis 'book' was the 3 inch binder that I created by printing off every TA article off of StockCharts. Reading this material (yes, I read every single article) helped direct my future reading. I have to consider John Murphy my favorite technician because of his gift of teaching. I appreciate the 'voice' that he brings to his writing, and his gift of objectivity without ego.

You can find the PerfCharts that Glenn asks about here. Here is what it looks like.

This happens to be a pre-packaged one on commodities. Over a period of time (using the slider) you can see how each group has performed relative to the other. You can also do that with stocks you are considering in a sector to see relative performance among each other.

Now to answer Glenn's question. No, I don't use them. Rather, I do it the hard way! And Glenn, if you want to share how you use these, I'd love to post it.

I really do find it comforting to look through a great number of charts through the week in different sectors--though to be sure, PERFcharts give a shortcut to that. The detail, though, gives me a 'feel' for what the underlying movement is under the market. helps me find setups in the making.

If you are not familiar with StockCharts, then I'd encourage you to spend some time there if you have an interest.

I have no position in NSSC, but I've owned it in the past. While the pattern is constructive (a lovely base) today's volume on the bar was not very high. I had this idea (when I entered the position who knows when) that security products might be in demand due to the future social unrest that all are predicting. Personally, I have my pact of dogs that though they would not kill anyone, make enough noise to disabuse someone from attempting trouble.

I'm gonna keep my eye on this. It's a low rent stock, but for some reason, I seem to have pretty gook luck with these.

I did buy some of WUHN. Notice that the volume is only 1500 shares. I happened to be 1,000 of those shares today.

From their website:

Wuhan General designs and manufactures industrial blowers and steam and water turbines.Industrial blowers are used to move large amounts of air in applications such as power generation, coal mining, sewage treatment, subway system ventilation, and the production of products such as steel, chemicals, and paper. Relative to power generation and the manufacture of industrial products, blowers are often used both to feed air into the process and also as part of the air pollution control system that cleans air emitted from the process.

Steam and water turbines are used to generate electricity. Our steam turbines can be used in various types of power generation facilities including those that consume coal, oil, natural gas, and nuclear fuel. Our steam turbines are also often used in cogeneration facilities in which excess heat and steam generated from the manufacturer of industrial products (metal, chemical, petroleum, paper, etc.) is converted into electricity. Water turbines are used to generate electricity from at hydroelectric stations.

It's a speculative play....but this chart, to my eye, looks promising.

1 comment:

Glenn_in_MA said...

Wow! A post to answer my question. Thanks

I was trying to find a way to quickly assess sector rotation on a week by week basis...the PerfCharts seemed like a good tool. Could there be another? But I agree that is not a substitiute for viewing short and long term charts of target stocks/sector ETFs once you know what industry sector you want to focus on.

Have a good weekend.