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| Elliott gave me the go, STZ gave me some Sidestepping Part 1 |
| Friday, December 29, 2006 |
PLEASE REMEMBER THIS IS FOR EDUCATIONAL PURPOSES ONLY!
STZ (Constellation Brands)
I thought it might be interesting to look back at a position that has been one of patience. Usually, this type of patience is more than I'm willing to wait. I don't usually see myself as a long-term investor, more like a short to mid-term trader.
When I first looked at this position, I have to admit, I really didn't know who they where, what they did, etc. Of course, why does "knowing what they do and who they are" mean anything to the technical trader? To some it does, to others it doesn't. For me, I like to know a little something about the company (at least it doesn't make you look like a fool if someone asks you about it).
I did read up a little on the company. Went to their website, looked at the SEC reports, scanned for insider transactions, then it was on to the charts and indicators.
Lets go into my ProfitSource now. Although I have a chart saved with all the relevant info from back then, I thought it might help myself and maybe others to show some progressive steps. Here we go.
Here is a current shot of the software, but I want to look back to the date I first started looking at the position. In order to do that, I need to change the date in the software from the current date.
For those of you still moving around in ProfitSource, the field is highlighted in the screen shot. All you need to do is Uncheck the "Use current data" checkbox, click on the drop down arrow after the date, and select which date you want to go back to. I first started looking at this position on 10-16-06, so we will change it to that.
 Now that the date has been changed, we can see that STZ is listed under a Wave 4 Buy signal. This is the first day that STZ appeared on the the precomputed list of ProfitSource. Pre-computed you say, yes precomputed. HUBB, the providers of ProfitSource, provide scans of the entire market for Elliott wave set-ups. When I say provide, I mean that all the data can be downloaded without you having to do the scans yourself. This does not always give the best results, but it doesn't always give the worst either. Like I send in a previous post, "Elliott Wave is not the only thing" so don't think its your pathway to riches. It is just another indicator that has helped me understand the market. More times than not, I am overlaying Elliott wave with other indicators. Note: Watch out for overlaying...it can drive your eyes buggy.
Continued in Part 2
Fibonacci
PLEASE REMEMBER THIS IS FOR EDUCATIONAL PURPOSES ONLY!Labels: Elliott Wave, Part 1, Profitsource, Wave 4 Buy |
posted by Fibonacci_Trader @ 11:47 AM   |
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