Skip to main content
No. of Recommendations: 2
Okay SheDevil,

Here's a chart I would look at for EMC.

It did slightly rise above it's 50 day EMA in early May a couple of times, but in those situations, it either didn't have adequate volume, or the MACD was negative. So, for all of this year (until Nov.) my system would have had you out of EMC, or it would have had you short, if you do both longs and shorts.

Here's a 3 month chart, which has a little better resolution.

Here's the daily prices since Nov 1.

The stock broke out on Nov. 5th above the 50 day EMA, but still had a negative MACD on the 5th. On Nov. 6th, everything met my system except the volume. Actually, the first true buy signal from my system was on Nov. 27th, where I would have bought during the day (as soon as I was sure volume looked to be above 32 million shares) at around $17.50 (hard to tell exactly when I would have bought, but 17.50 +/- .30 is close). I would have entered a stop loss order at $15.40.

The stock is above the 50 day EMA and we are in a waiting period to see if it will head higher, but we would still have a $15.40 stop loss order in place. The MACD looks good and the RSI is now rising.

Note: some people might want to use tighter stop/loss orders, but this will increase the number of times you get stopped out.

In summary, as of right now, I'd be in EMC with a purchase price of $17.50 and a stop/loss of $15.40.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.