Oct 31, 2008

Farley and Twitter Combine to Find My Next Great Trade

A Scan that Finds Stocks Resisting the Market Downtrend – Stick Above the 200 MA
Already my post earlier this week,  How Twitter Improves My Trades, continues to evolve and provide further lessons.
Twitter Apps to Consider
  1. There’s a growing list of applications that build off of the Twitter data feed of wit, prose, commentary of 140 characters (that’s the limit Twitter allows you to express your thought/twit).  Here’s just 2 applications that seek to manage and organize Twitter chatter into relevant conversations based on your interests and those whose comments you follow:

    A. Tweetdeck, a slick application that in one view organizes group conversations and replies to your comments: http://www.tweetdeck.com/beta/

    B. StockTwits, I expect to see more of these types of applications – the kind that create communities around common domains (e.g., movies, sports, or in this case, all things stocks and markets).  StockTwits mines the Twitter feed for those comments that use stock symbols and organizes not only who is talking about what stocks, but given a stock, who has talked about it: http://www.stocktwits.com/streams/all

    Both of these apps and others build off your Twitter account (which you must first create at Twitter).

  2. Via Twitter and its associated, helpful assist applications, I’m getting more articles about market strategy than I would ever found on my own.  The Twitter community about the markets that I follow supplies an almost never-ending supply of “Hey, look what this guy said”.  These articles are the source of most of the Strategy Session articles we write (where we model what’s theorized according to the Trade-Ideas list of alerts and filters).
Farley Picks: Above 200MA Resisting Downtrend
Here is an example of an article and a scan from today:
Interesting article d’A. Farley re: NOT picking stocks at lows but rather safer stocks resisting dwntrnd: http://tinyurl.com/63jff3 Ex: $NDN 18 minutes agofrom StockTwits

Here then my scan interpretation, “Farley Picks: Above 200MA Resisting Downtrend” – http://tinyurl.com/68q7lp – $DV $STRA $AFAM 15 minutes agofrom StockTwits

Same strategy but further refined for optionable stocks only: http://tinyurl.com/55zrmg – interesting $DNA $BUD 13 minutes ago fromStockTwits