Wednesday, December 10, 2014

Some decent trends going against the general market

While the major indices have been continuing to be at or near to all-time or multi-year highs, some stocks have been steadily trending in the opposite direction for a while.

I talked in this post about paying less attention to the general market movements going forward, and more on the longer term trends within the stocks I am looking to trade. And, as I point out in my e-book, if the market is going one way and a stock breaks out in the opposite direction, this can be a great potential opportunity.

While these examples and others maybe concentrated into one or two sectors, the charts below show what can happen if you concentrate on the longer-term direction in the individual stock - all gave a signal when they started falling below a trend filter or indicator, resulting in these significant downtrends.

Finally, showing it can work just as well in the opposite direction, I've also shown a stock I traded on the long side in early 2008, when the markets were at best indecisive, and were gearing up for their big move down later in the year.

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