I’ve written in the past about how helpful RSI Divergence is. It’s an osscilator type indicator and is good for finding temporary bottoms and tops in a primary trend. It is NOT good when the trend has changed and that may be the period we are entering now in the market. Since I trade on a combination of fundamental and technical measures, I thought it would be critical to review my current holdings. Only five positions met that description, bullish divergence on both the weekly and daily charts. They are:
SJW SJW Corp Silicon Valley public water utility company yielding 3.10%
SEH Spartech Corp an intermediary manufacturer of plastic products which reports earnings on 6-9 before the market opens.
TMV Direxion 30 Yr Treasury Bear 3X. A leveraged short bet against the 30 year treasury.
CEDC Central European Distribution Corp, the largest producer by volume of vodka in the world and Central and Eastern European largest integrated beverage business.
CDI CDI Corp an engineering and outsourcing information technology company.
Of these positions, the ones I would add to are CEDC and the short on US 30 Yr Bond. Bottoms up on the vodka and watch out for rates, they could be heading higher on the long end in spite of the weak market.
useful to review some of the three hundred or so stock I follow that have significant insider buying to see if I can find any bullish combinations of daily and weekly RSI bullish divergence.