Wednesday, December 28, 2011

Trading Individual Stocks in addition to Indices (DIA, SPY, QQQ)

I will possibly add more commentary here later. For now, some quick thoughts:

My posts often feature stocks from the Dow Jones 30 (as well as other Top 100 stocks, and small cap individual names as well).  This post focuses on the Dow.

The charts below show daily, one year charts, but the same principles apply to shorter timeframes such as 60 minute charts. Trading high volume individual stocks is suitable for holding times from hours to months.
The charts below show how trading individual stocks (for multi-day swings, to multi-month positions) can easily outperform the S&P 500 (SPY), The Dow Jones (DIA), and the Nasdaq / Tech (QQQ).

For example, for longs, MCD McDonalds is up 30% this year, vs. 4.7% for the Dow (with SPY at 1% loss and QQQ up 1.68%).

Visa up 42%!

For example, for shorts, AA is DOWN 44% this year.  Tremendous profits for those short AA.

In the Charts below, the Dow Jones is the blue line, for comparison. 1 year, daily charts.

Stocks in the charts below are currently in my focus list, which changes from time to time.

Bullish Stocks 1 of 2 (double click chart for larger full size)



Bullish Stocks 2 of 2 (double click chart for larger full size)



Bearish Stocks 1 of 1 (double click chart for larger full size)


Current Focus List for Dow.


BEARISH
***AA  
***BAC
***HPQ
***JPM

BULLISH
***MCD
***IBM
***HD
***KFT
***PFE
***BA  
***VZ
***WMT
***V (not in Dow but in this list for now)




* ChristopherStockGuy is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. For details, see the post from SATURDAY, AUGUST 15, 2009 titled "Disclaimer".

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