weinstein index

8/12/2019 Weinstein Index

1/4

Standard and poors weekly charts1 list group chart patterns sector chapter p802 no buy signal did not brea above 30MA below is only 2 week rally p743 basic or!ation below 30MA" no buy signal# $744 bullish holidays p72% basic unda!entals 4 ter! presidentials p70

& end o year rally p707 buy stop li!it order 4 betta ills p&&8 buy stop buy only i breakout certain level# $&%' buy break resistance p&410(11 !oving stage 1 into stage 2 or!ations base p%'12 position si)ing13 reading the tape p&14 buy bad news *sell good news p101% so!e trading rules news p101& stock +y) graph p11

17 i!portance testing resistance,support# -reaking out o trading range above resistance and above30MA# $12,1318 two actors breakout 1 and 2 ti!e volu!e p141' pullback ater breakout advance on lower volu!e is buy opp# $14,1%20 degree o slope trendline 2 rules p1%21 bearish bullish slopes p1&(1722Accurate deine when chart is uptrend,dwn trend# p17 23 relative strength how a given stock or groups act in relation to overal !arket p18or!ula is price o stock over or divided by price o !arket average24 never buy below 30MA never sell above 30MA p2&long range background chart . new highs or new lows/ p2& dont buy when relative strength line is in downturn p27filter weinsteinnot enough price shoots past MA and resistsnce ro! base* !ust look or1 long ter! perspective was there resistance here within % years# Is it a 10 year new high t will!eet with no resistance as it shoots up# .resistance is also heavy supply is previous years p1002 dont worry about basing volu!e* but a breakout shouldb e acco!panied with large volu!e#.relative volu!e/3 volu!e at least twice average volu!e previous !onth or volu!e build up.need to tabulate/ that isat least twice the average volu!e o the past several weeks coupled with at least so!e increase onthe break out week# bserve increasing volu!e over preceding weeks p104

2% 4 stages o a !a5or cycle

relative strength co!parative properties !easuring relationship divergence eg# Sector inde+

versus !arket inde+# Scan industry sectors over general !arket inde+# 6reates a list o best peror!ing sector

the older the resistance the less potent it is p'8

i stock hasnt traded in the last 10 years is A stock# $''

double up on )anger threads to relect reward ratio opportunity#eg# 10 at least 1009

:uick list actors or breakout

level o relaive strength sector analysis


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;ote# Stock correlations and pairs# rendlines channel

?olu!e conir!ation#30 ?olu!e can take out resistance. dra!atically increased@p14%

a big advance beore breakout !eans a bigger breakout potential# $roit prebreakout

advance= >he older the resistance the less potent and less worriso!e when breakout e!erges high

volu!e would overco!e it..nico inerred p1%4

2% dra!atic drying up on the pull back ater breakout is a conir!ation p10%

trend needs to be bullish

2& groups should be positive chart !ust be breaking stage 2 with !ini!u! o resistanceoverhead## inally volu!e !ust conir! the breakout

when in trading range a breakdown occurs and relative strength .relation o stock to general

!arket/ is good* then do not sell short# $ 10' 27 stock e+a!ple o relative strength although 0 when breakout occurred* was trending

higher '0 days beore breakout# $111

:uick reerence guide to buying .all !entioned/ p11%

28 i!!ediately du!p a breakdown p11%

head and shoulder conditions#.stage 4 / 1 new low# Bood shape 30MA breaks above it !ust

have high relative volu!e in accord with weinstein rule buy stop order was e+ecuted.li!it/# Cead and shoulders patterns can or! with dierent stocks in sa!e groupsector#

.opportunity/ p122 double botto!s.not as good as CDS patt#/

2' circu!stances o stage 1 or!ing double botto! p124

double botto! needs positive relative strength and volu!e to breakout p12%

recall )anger saying big trading sessions twice a year concurs to a conluence o positive

!arket conditions and doubling up on high probability stake weinsteins don't rules p12'

:ui) .and throughout book p12'

dont buy all in one group* buy other groups with great technicals and buy stage 2breakouts#

$sychology inter!ittent reinorce!ent in poker !achines

buying 10 stocks a year strategy or your 20009 good strat# $140

the triple thread pattern# -uy when ES line in negati ve or hugging )ero line neutral ashion*

when stage 2 break out* the ES line should !ove into positive territory# $1%0 1%1 Fou can chalk up a ine gain even i breakout is not acco!panied by positive ES line p1%1

triple conir!ation pattern chart p1%1

30 Earningsno actor in criteria weighting p1%% 1%&

32 at least 1 :uarter earning !arket did not care p178

invest heavily in low priced stock advancing sharply high pro p1%7 p,e low and high !eans nothing to stock luctuations p1&'

31 bail stock showing weakness in a bull general !arket p17%


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progra!!ed trading !ore volatility use sell stop losses# $p17'

your sell stop beco!es a !arket order to sell .li!it order/

set GTCsell stopbelow support accounting or a !argin correction eg# Stop at 18 1,8

while support is at 18 G and !ake stop loss a non round nu!ber to ull !arket !akers herd!entality worst case loss % p183

p183 ater the irst substantial correction o at least 8 to 10 percent * you are going to raise the

stops(trailing stops/# $184 i correction violates 30MA raise sell stop# correction above 30MA place sell stop below

MA#continue to !oving the sell stop up as the MA advances# .Syste! o trailing a sell stop/Hhen MA strasightens out at top* no longer we place sell stop

below !oving .e+a!ple can be over 2 year period with ew ad5ust!ents#MA* now we place it at new support at trought o the wave.correction )one/ p18%

3% initially place sell stop under previous correction low beore breakout p18&

successul breakouts should never pullback !ore than 4 to & pecent below the breakout

point# $1'% at breakout issue sell at non round nu!ber but the ne+t trail stop and price rise place it at

round nu!ber# 3& >raders should not pay attention to corrections o less than 7 percent#

37 raise your stop once stock is held at c and rallies back close to prior top* raise the sell

stop# $1'% never stay with stock under 30MA

setting trailing stop a!ong trendline high lows in channel# $1''

38eit strategyi violate trendline e+it hal and i goes to prior correction low get re!ainder

o swing rulepeak price !inus low price add dierence to top price .i it is going above this

high .this !arks the top and is ready or the downside/ p202 sell high as close to the pro5ected level as possible and sll the re!ainder as the stop is set

o203 large short interest 10 ti!es average daily volu!e o stage 2 stock rises not alls sucker

shorts p222 and ater split e+a!ple p22% shorting

Idont short when stock MA30* trades thinly* is in stage 2 and 10ti!es volu!e.splitsp227

dont short in strong group*always buy stop order#

!horting rules 1(1& note228(240

1 adv#2 lt MA#3sidwys4wks#supportlvlstg 4downturn ;o#4breakdwn#4-buy pullbk#

J shorting stock with overal "ullish mar#ettrend e+ception* not rule* but generally

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