Zacks.com featured expert Kevin Matras highlights: Las Vegas Sands, National HealthCare, American Dental Partners and Trubion Pharma.CHICAGO -- Kevin Matras looks at how to use Price and Volume for locking in profits, cutting losses and spotting potential trend changes. Stocks in this week's article are Las Vegas Sands Las Vegas Sands Corp. (NYSE: LVS) is a casino resort company based in Las Vegas, Nevada and majority owned by one of the world's richest men, Sheldon Adelson. Las Vegas Sands chairman Sheldon Adelson, the world's sixth richest man, has said that his company will soon be Corporation (NYSE NYSE See: New York Stock Exchange : LVS LVS Linux Virtual Server LVS Live Vaccine Strain LVS Las Vegas, New Mexico (Airport Code) LVS Low Voltage Switchgear LVS Logistical Vehicle System LVS Laser Vibration Sensor LVS Logistics Vehicle System ), National HealthCare Corporation (AMEX AMEX See: American Stock Exchange : NHC NHC National Hurricane Center NHC Naval Historical Center NHC National Housing Conference NHC National Hurricane Conference NHC National Healthcare Corporation NHC No Homers Club (Simpsons cartoon) ), American Dental Partners (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ADPI ADPI Alpha Delta Pi Sorority ADPI American Dairy Products Institute ADPI Analog Devices (Philippines) Inc ADPI Australian Dance Performance Institute (Brisbane, QLD, Australia) ) and Trubion Pharmaceuticals, Inc. (NASDAQ: TRBN). Click here for the full story exclusively on Zacks.com: http://at.zacks.com/?id=109. Screen of the Week written by Kevin Matras of Zacks Investment Research Zacks Investment Research A firm that compiles earnings estimates and brokerage firm investment recommendations for thousands of publicly traded firms. : This week, I want to talk about using price and volume to pull profits and cut losses. And I'll go over three ways to do this. First, take a look at your stocks. Are they moving higher convincingly on growing volume? Or are they marking higher prices on diminishing volume? This is important since volume is expected to follow price. If the stocks on your radar are moving higher, but without greater investor interest, it can often mean a pullback Pullback A falling back of a price from its peak. This type of price movement might be seen as a brief reversal of the prevailing upward trend, signaling a slight pause in upward momentum. is in the near offing. A screen for helping you weed weed, common term for any wild plant, particularly an undesired plant, growing in cultivated ground, where it competes with crop plants for soil nutrients and water. out the weak from the strong can be as simple as looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. three days (or more) of higher prices while each day it's registering less buying pressure (lower volume). The parameters are: * Recent Price greater than Price 1 Day Ago (Recent greater than Recent-1D) * Price 1 Day Ago greater than Price 2 Days Ago (Recent-1D greater than Recent-2D) * Price 2 Days Ago greater than Price 3 Days Ago (Recent-2D greater than Recent-3D) and ... * Recent Volume less than Volume 1 Day Ago (Recent less than Recent-1D) * Volume 1 Day Ago less than Volume 2 Days Ago (Recent-1D less than Recent-2D) * Volume 2 Days Ago less than Volume 3 Days Ago (Recent-2D less than Recent-3D) If your stocks show up on this list, pay close attention. They could be in store for a direction change. You can also look for three days down (or unchanged) with increasing volume. Lots of action with no upside Upside The potential dollar amount by which the market or a stock could rise. Notes: This is basically an educated guess on how high a stock could go in the near future. See also: Bull, Downside progress can often be a sign of distribution (people selling off their stock), or people getting short. The parameters are: * Recent Price less than or equal to Price 1 Day Ago (Recent less than or equal to Recent-1D) * Price 1 Day Ago less than or equal to Price 2 Days Ago (Recent-1D less than or equal to Recent-2D) * Price 2 Days Ago less than or equal to Price 3 Days Ago (Recent-2D less than or equal to Recent-3D) and ... * Recent Volume greater than Volume 1 Day Ago (Recent greater than Recent-1D) * Volume 1 Day Ago greater than Volume 2 Days Ago (Recent-1D greater than Recent 2D) * Volume 2 Days Ago greater than Volume 3 Days Ago (Recent-2D greater than Recent 3D) Here are two stocks that fit this screen for Monday, June 25, 2007): LVS Las Vegas Sands Corp. NHC National HealthCare Corp. You may even want to check for stocks with big price drops on much larger-than-average volume. If the price falls by 6%, for example, on 20% more volume than average, that can also be your cue cue, n a stimulus that determines or may prompt the nature of a person's response. cue Psychology Any sensory stimulus that evokes a learned patterned response. See Conditioning. that things may be changing. Again, since volume in general should follow the price, a big price drop on increasing volume could be foreshadowing fore·shad·ow tr.v. fore·shad·owed, fore·shad·ow·ing, fore·shad·ows To present an indication or a suggestion of beforehand; presage. fore·shad even lower prices to come. The parameters are: * Recent Price less than or equal to .94x Price 1 Day Ago * Recent Daily Volume greater than or equal to 1.2x (20%) 20 Day Average Volume Such as (for Monday, June 25, 2007): ADPI American Dental Partners TRBN Trubion Pharmaceuticals, Inc. There are many other ways to use price and volume as an indicator of a stock's possible future direction, including on the way up. By simply applying these screens to your stocks, you could avoid 'suckers rallies', exit major tops sooner, and lock in hard-earned profits before the market takes them away. (By the way, these strategies and many more come loaded with the Research Wizard program.) See for yourself and put your own stocks to the test. Historical daily volumes (and even prices) aren't available in all screeners, but they are available in the Research Wizard. (Not to mention 650 other items as well). Sign up now for your two-week FREE trial to the Research Wizard and see how easy it is to make better trading decisions today. http://at.zacks.com/?id=111 . Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. About Screen of the Week Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here http://at.zacks.com/?id=112. About Zacks Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros http://at.zacks.com/?id=113. Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual to buy or sell any security. |
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