Category Archives: Uncategorized

One of the things …….. is that the U.K. is not in great financial shape right now – comments June 21, 2016

June 21, 2016earnings, educational newsletters, FOREX, fundamental analysis, Top Stock analyzer, Uncategorizedadmin

The Dow shot up over 270 points at the open, then spent the rest of the day giving back about half of those points to close up 130 at 17,805. Volume was moderate, coming in at 96 percent of its 10-day average. There were 178 new highs and only 9 new lows.

Yesterday’s rally was the Big Move predicted by last Thursday’s small change in the A-D oscillator. It also came on the heels of last Wednesday’s VIX Buy Signal.

The rally was fueled by two polls released in the U.K. over the weekend that showed the ‘Stay’ vote taking a small lead. Prior polls had been showing the ‘Leave’ vote with a small lead, so the markets took the change in polling as a positive sign. I wouldn’t get too excited about the polls, because the result of Thursday’s vote is still way too close to call, especially in view of the impact that a ‘Leave’ vote could have on financial markets.

One of the things that students should realize is that the U.K. is not in great financial shape right now. The country is running significant account deficits and a lower pound won’t be that much help to British consumers and exporters.

In September 1992, when the UK last devalued its currency by 15 percent, the country was able to recover because interest rates had been running over 10 percent, so consumers and businesses benefited by the devalued pound which lowered interest rates. But now with interest rates running near zero, a 10-15+ percent devaluation of the pound could have entirely different consequences. It could severely impact the UK’s economy and put the country into a deep recession that could take years to recover.

So we need to be on our toes going into Thursday’s vote. If the ‘Leave’ voters win, Friday could be a very bad day for world markets. On the other hand, IF the ‘Stay’ voters get the upper hand, world markets should react positively with the Dow likely to re-test the 20 April high of 18,168.

Please be careful going into Thursday. In my opinion, the vote on Brexit is too close to call and could go either way. This means that the risk to your portfolio is very high.

So because of the high risk, I am mostly focused on short-term scalps. With a positive Dean’s List, a neutral Tide, and negative DMIs and Money Flow indicators, the cockpit indicators are about as mixed as they can be. They’re telling me to be on the sidelines or scalp trade only.

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However, my custom VTI turned positive after yesterday’s trading, so I’m going to look for scalp trades to the long side today. One of the things I’ve found is that whenever the VTI changes direction, stocks highlighted for the Honor Roll tend to do well over the short term. We’ll see if this holds true today with BP and Continental Resources (CLR), the two energy stocks that were highlighted last night.

My other focus will be on gold. Yesterday’s early rally in the equity markets caused most gold stocks to pull back. It also caused UUP to drop off the Dean’s List and the UDN, inverse Dollar ETF, to re-appear. So for the very short term, the Dean is telling is us the Dollar is weakening, which means the environment for gold could be getting stronger.

Also, the 2-period RSI Wilder on ABX closed with an oversold reading of 22.17. So with ABX in an Uptrend (50>200) and an oversold RSI on the Daily chart, its telling me that it might be a good time to go hunting. I spent several hours last night polishing my Rifle)

That’s what I’m doing,

The Professor

Market Signals for

06-21-2016

DMI (DIA)	NEG
DMI (QQQ)	NEG
COACH (DIA)	NEG
COACH (QQQ)	NEG
A/D OSC
DEANs LIST	POS
THE TIDE	NEU
SUM IND	NEG

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AIQ monthly FREE scan – get yours now

March 3, 2016Uncategorizedadmin

For years the fundamental module in TradingExpert Pro has provided
a unique trading strategy tool for filtering stocks. These include

·
Advanced weighting the impact of different fundamentals

·
Quick build of reports and lists

·
Chart list from fundamental reports

·
Rank and tag tickers so you’ll always know where they
stand fundamentally

Each month we’ll be providing one or two insightful scans for FREE with
accompanying list files where appropriate that you can download and use in your
TradingExpert Pro.

March 2016 screen identifies stocks with EPS momentum.
Stocks which will likely see earnings per share growth over the next two
quarters.

We’ll need your name and
e-mail address to get you access to the AIQ list files and scan
results. There are several other scans also available for you after you
register, including

·
Under Valued High Yielding Stocks, best used when there has been a market
correct of 8-10%.

·
Stocks with a Price to Sales ratio below the median for its Industry show
greater returns.

Visit the AIQ home page
at http://aiqsystems.com and fill out the form

Yes please I’d like to receive AIQ Data Power

Packs FREE scans or list each month

The most popular use of the fundamental data is in
combination with technical strategies in the Expert Design Studio. What better
way to hone in on candidates than to combine both approaches in one strategy
that you can run every night.

Now with the launch of the AIQ Data Power Pack FATI®, you can get updated fundamentals each
month directly into your TradingExpert Pro again.

Over 4400 Charts with instant click to 60 fundamentals fields

Unleash the power of fundamental

ranking with any number of strategies

Suppose
I want a list of stocks to short that are fundamentally weak what would I look
for?

How about a
High Risk, High Debt strategy?

This
strategy finds stocks that are having a hard time meeting their day-to-day
obligations. It finds stocks with the lowest quick and current ratio. The
lower, the more debt and liabilities and the less able a company is to pay
current debt. Add in a high debt to equity ratio and rank them all equally.
You’ll have a list of stocks that are worth keeping an eye on for a technical
entry to the short side.

Here’s
Charter Communications, the top high risk high debt ticker on 2/18/16

Build a technical and fundamental strategy in Expert Design
Studio and run it every night

EDS
allows you to design, test, and automate virtually any trading idea with the
point-and-click interactive trading library and pre-built strategies that have
been fine-tuned by our analysts to produce outstanding results.

With the FATI® fundamentals fields, you can add in another layer of screening
to your technical screening and uncover hidden gems in your database.

Included
with your fundamentals FATI® Sector and Group Structure and Extra bonus

FATI® Market Capitalization

LEARN MORE at http://aiqsystems.com/FATI_and_fundamentals.html

AIQ announces the return of fundamental screening to TradingExpert Pro

February 19, 2016Uncategorizedadmin

Dear Trader,

For years the
fundamental module in TradingExpert Pro has provided a unique trading
strategy tool for filtering stocks. These include

·
Advanced weighting
the impact of different fundamentals

·
Quick build of
reports and lists

·
Chart list
from fundamental reports

·
Rank and
tag tickers so you’ll always know where they stand
fundamentally

The most popular
use of the fundamental data is in combination with technical strategies
in the Expert Design Studio. What better way to hone in on candidates
than to combine both approaches in one strategy that you can run every
night.

Now with the
launch of the AIQ Data Power Pack FATI®,
you can get updated fundamentals each month directly into your
TradingExpert Pro again.

Over 4400 Charts with
instant click to

60 fundamentals fields

Here’s the
entire list of fields available on 4400 stocks, updated each month and available in
AIQ Charts, Fundamentals and Expert Design Studio.

·
Options

·
Shares Outstanding (mil)

·
Sales ($mil)

·
% Held by Institutions

·
% Held by Insiders Net

·
% Chg Holdings 12 Wks Market Cap ($mil)

·
Current Ratio

·
Avg Daily Vol 20 days

·
Beta

·
Avg Broker Rating

·
No. in Rating

·
% Change Completed Qtr Est – 4 wks

·
% Change Curr Qtr Est – 4 wks

·
% Change Next Qtr Est – 4 wks

·
% Change Curr Fiscal Yr Est – 4 wks

·
% Change Next Fiscal Yr Est – 4 wks

·
Est EPS Growth Current Year

·
Est EPS Growth Curr & Next Yr

·
Qtr EPS this Qtr/ prior qtr

·
Qtr EPS last Qtr/ prior qtr

·
Qtr EPS 2Qtrs ago/ prior qtr

·
Anl Sales this Yr/ Sales last Yr

·
2 Years Ahead Sales Growth

·
Cash Flow 5 Yr Avg

·
Div Yield

·
Indicated Anl Div

·
Payout Ratio

·
P/E using Curr FY Est

·
P/E using Next FY Est

·
Return on Equity

·
Return on Assets

·
Return on Investment

·
Inventory Turnover

·
Receivables Turnover

·
Asset Utilization

·
Debt/ Tot Cap

·
Debt/Equity Current Ratio

·
Market Capitalization

·
Quick Ratio

·
Cash Ratio

·
Interest Coverage

·
Cash Flow ($/sh)

·
Price/ Book

·
EV/EBITDA 12 Mo

·
P/E F1/ LT EPS Gr

·
Pretax Mgn 12 Mo

·
Net Mgn 12 Mo

·
Oper Mgn 12 Mo

·
Current Fiscal Yr Cons Est

·
# Anlst in Cons Current Fiscal Yr

·
Next Fiscal Yr Cons Est

·
# Anlst in Cons Next Fiscal Yr

·
Completed Quarter Cons Est

·
# Anlst in Cons Completed Qtr

·
Current Quarter Cons Est

·
# Anlst in Cons Current Qtr

·
Next Quarter Cons Est

·
# Anlst in Cons Next Qtr

·
12 Mo EPS before NRI

·
Piotroski Score

Unleash the power of
fundamental

ranking with any
number of strategies

Suppose I want a
list of stocks to short that are fundamentally weak what would I look
for?

How about a High Risk, High Debt
strategy?

This strategy
finds stocks that having hard time meeting their day-to-day
obligations.It finds stocks with the lowest quick and current ratio.
The lower, the more debt and liabilities and the less able a company is
to pay current debt. Add in a high debt to equity ratio and rank them
all equally. You’ll have a list of stocks that are worth keeping an eye
on for a technical entry to the short side.

Here’s Charter
Communications, the top high risk high debt ticker on 2/18/16

Build
a technical and fundamental strategy in Expert Design Studio
and run it every night

EDS allows you
to design, test, and automate virtually any trading idea with the
point-and-click interactive trading library and pre-built strategies
that have been fine-tuned by our analysts to produce outstanding
results.

With the FATI® fundamentals fields, you can add in another layer of
screening to your technical screening and uncover hidden gems in your
database.

Included
with your fundamentals

FATI® Sector and Group
Structure

Quality and Opportunity is right here. Stocks fitting the
fundamental criteria below are arranged into the FATI® Sector and Group
Structure and provided to you updated each month.

These lists contain stocks which have the following four key
characteristics.

Average
Daily Trading Volume > 84,999 shares
Current
Price > $4.99
Number
of Analysts Ratings >= 2
Market
Valuation > $99 million

FATI® Sector and
Group Structure – There
are approximately 2500-3000 stocks on average. They are broken down
into 17 sectors and over 60 industry groups.

Extra bonus

FATI® Market
Capitalization

The same list of
stocks as in the FATI® Sector & Group list broken down by market
capitalization into separate lists. Make your analysis
segment focused with ease.

Mega Cap > $50bn
Large Cap > $10bn < $50bn
Mid Cap > $2bn < $10bn
Small > $1bn < $2bn
Micro > $500mn < $1bn
Nano >$99mn < $500mn

Updated tickers, lists and fundamental data every
month for one price

$29.99/mo.

or call Sales: (800) 332-2999 1
775-832-2798 from outside the U.S.

E-mail sales@aiqsystems.com

Investment Grade Quality with High Yielding Income

February 17, 2016Uncategorizedadmin

Fixed income investors are
continually looking for high yielding investments with stability of principal.
It has been that way for decades. Today is no different either. For years, the
high yield bond market provided more than ample income for investors and in
some cases capital appreciation of their investment. That has all changed over
the past year.

Share prices of high yield
bond ETF’s have declined on average -15.33% over the past year while yields
have remained stable or increased in some cases due to price declines. Some
investors face another problem, where can they re-invest surplus income. Both
situations are very troubling for fixed income investors today.

Since the beginning of the
year investors have seen extremely high market volatility for a plethora of
reasons which we will not go into here. Despite all the hoopla in the news and
talk by pundits, fixed income investors questions have not changed. They remain
the same and they need answers.

Today, I am going to share an
idea which may address the fixed income investors questions. This is a little
known area to many investors. It is called Exchange Traded Debt (ETD’s or Baby
Bonds). They trade on the stock exchange like a stock, but they are actually
debt of corporations.

ETD’s or Baby Bonds are debt
issued by a corporation in denominations less than the normal bond denomination
of $1,000. In fact, most ETD’s are issued in $25.00 denominations. They all pay interest, usually quarterly,
unlike most bonds which pay semi-annually. There is no preferential tax
treatment on the interest paid.

Now, let’s look at
what happened over the past year (2/13/15- 2/12/16). Below are a few
interesting data points which support why investors may want to consider ETD’s
as an income alternative. Before we look at that data, keep in mind the ETD’s
selected are all investment grade securities vs. high yield bonds which are non-investment grade.

High Yield ETF’s * IG – ETD’s **

Average
Change in Principal/ Price Only -15.33% -2.83%

Average
Current Yield
6.91% 6.38%

Standard
Deviation
5.71 2.15

Ok, this all sounds great, but
what is the down side? The downsides are the spreads are a little wider than
one would expect. So, you do not want to use market orders when buying or
selling. Limit orders only. Next, you are investing in individual issues, so
you do not have the diversification of a ETF.

The key to investing in ETD’s
is to focus on investment grade issues. Investment Grade ETD’s carry a lower
default risk, yet they provide yields equal to high yield bonds. Below is a
sample of investment grade ETD’s. You see issuers like Prudential Financial,
U.S. Cellular, Tennessee Valley Authority and even Raymond James Financial.
Some ETD issues are even secured with real estate.

One last point here. In the
event of a corporate bankruptcy, bond holders (ETD’s) are in line ahead of
preferred and common stock investors. A small nuance, but something to consider.
I say this because some investors confuse ETD’s with preferred stocks. ETD’s
are not stocks, they are debt and pay interest. They just trade on the stock
exchange like a preferred stock or high yield ETF.

Notes:

* Data
compiled from a Composite of the 10 Largest High Yield ETF’s.

** Data
compiled from a Composite of 40 Investment Grade ETD’s.

Markos Katsanos’s “Trading The Loonie”

February 12, 2016Uncategorizedadmin

Here is some code for use in AIQ based on Markos Katsanos’s article in Stocks and Commodities, “Trading The Loonie.”

The code I am providing contains both the divergence indicator and a long-only trading system for the NASDAQ 100 list of stocks. Rather than trading forex, I wanted to try the divergence idea and the author’s entry rules on the NASDAQ 100 stocks.

The stocks are traded long using the author’s entry rules with two of the parameters adjusted as shown at the top of the code file. The exit has been changed completely to use a profit protect (protect 50% of profits once a 20% profit is reached), a stop-loss (protect 75% of capital), and a time-stop exit (exit after 21 days).

I used the NASDAQ 100 index (NDX) in place of the crude oil futures. The assumption is that since the stocks on the list are all in the NDX, they would generally be correlated to the index. The author’s entry rule filters out those with a negative correlation to the index. Note that I changed the minimum correlation from a -0.4 to 0.0. In addition, I found that increasing the minimum divergence from 20 to 2,000 increased the Sharpe ratio and decreased the maximum drawdown without affecting the annualized return.

Figure 6 shows the equity curve versus the NASDAQ 100 index for the period 1/5/2000 to 10/14/2015. Figure 7 shows the metrics for this same test period. The system clearly outperformed the index.

FIGURE 6: AIQ. Here is a sample equity curve for the modified divergence system versus the NASDAQ 100 index for the period 1/5/2000 to 10/14/2015.

FIGURE 7: AIQ. Here are the metrics for the modified system and the test settings.

!TRADING THE LOONIE
!Author: Markos Katsanos, TASC December 2015
!coded by: Richard Denning 10/17/15
!www.TradersEdgeSystems.com

!Set parameters:
 Define Len        20. !Default is 20
 Define F1          2. !Default is 2
 Define F2          4. !Default is 4
 IDX is         "NDX". !NASDAQ 100 index 
 IDXsLen is        40. !Default is 40
 minDIVERG is    2000. !Default is 20
 minROC is          0. !Default is 0
 minCorrel is     0.0. !Default is -0.4

!Close percent relative to BB band width for stock:
Variance is Variance([close],Len).
StdDev is Sqrt(Variance).
SMA is simpleavg([close],Len).
stkBB is 1+([close]-SMA+F1*StdDev)/(F2*StdDev).

!Close percent relative to BB band width for index:
IDXc is tickerUDF(IDX,[close]).
VarianceIdx is Variance(IDXc,Len).
StdDevIDX is Sqrt(Variance).
SMAidx is simpleavg(IDXc,Len).
idxBB is 1+(IDXc-SMAidx+F1*StdDevIDX)/(F2*StdDevIDX).

DIVERG is (idxBB-stkBB)/stkBB*100.     !PLOT AS CUSTOM INDICATOR
DIVERG1 is valresult(DIVERG,1).
ROC2 is ([close]/val([close],2)-1)*100.
ROC3 is ([close]/val([close],3)-1)*100.
ROC3idx is tickerUDF(IDX,ROC3).
IDXsma is simpleavg(IDXc,IDXsLen).
IDXsma2 is valresult(IDXsma,2).
HHVdiverg is highresult(DIVERG,3).

Setup1 if highresult(DIVERG,3) > minDIVERG.
Setup2 if DIVERG < valresult(DIVERG,1).
Setup3 if ([close]/val([close],2)-1)*100 > minROC.
Setup4 if IDXsma > valresult(IDXsma,2).
Setup5 if pCorrel > minCorrel.

Buy if  Setup1 and
 Setup2 and 
 Setup3 and
 Setup4 and 
 Setup5.

BuyAlt if Buy.

LongExit1 if MACDsigMACD,1) and
      Stoch > 85.
LongExit2 if lowresult(DIVERG,3)=21 or [close] <= (1-0.25)*{position entry price}.

!Code to Calculate Pearson's R [for entry]:
! PeriodtoTest is the number of lookback days.
! IndexTkr is the Instrument that you which to compare your list to.
PeriodToTest is Len.
IndexTkr is IDX.
ChgTkr is ([open] / val([open],PeriodToTest)-1)*100.
ChgIdx is TickerUDF(IndexTkr,ChgTkr).
Alpha is ChgTkr - ChgIdx.

ValUDF is (([close]-[open])/[open]) * 100.
ValIndex is TickerUDF(IndexTkr, ValUDF).
ValTkr is ValUDF.
SumXSquared is Sum(Power(ValIndex,2), PeriodToTest).
SumX is Sum(ValIndex, PeriodToTest).
SumYSquared is Sum(Power(ValTkr,2), PeriodToTest).
SumY is Sum(ValTkr, PeriodToTest).
SumXY is Sum(ValTkr*ValIndex, PeriodToTest).
SP is SumXY - ( (SumX * SumY) / PeriodToTest ).
SSx is SumXSquared - ( (SumX * SumX) / PeriodToTest ).
SSy is SumYSquared - ( (SumY * SumY) / PeriodToTest ).

!Pearson's R and Pearson's Coefficient of Determination:
pCorrel is SP/SQRT(SSX*SSY).

!Code to Calculate Pearson's R [for exit]:
! PeriodtoTest is the number of lookback days.
! IndexTkr is the Instrument that you which to compare your list to.
PeriodToTestX is 3*Len.
IndexTkrX is IDX.
ChgTkrX is ([open] / val([open],PeriodToTestX)-1)*100.
ChgIdxX is TickerUDF(IndexTkrX,ChgTkrX).
AlphaX is ChgTkrX - ChgIdxX.

ValUDFX is (([close]-[open])/[open]) * 100.
ValIndexX is TickerUDF(IndexTkrX, ValUDFX).
ValTkrX is ValUDFX.
SumXSquaredX is Sum(Power(ValIndexX,2), PeriodToTestX).
SumXX is Sum(ValIndexX, PeriodToTestX).
SumYSquaredX is Sum(Power(ValTkrX,2), PeriodToTestX).
SumYX is Sum(ValTkrX, PeriodToTestX).
SumXYX is Sum(ValTkrX*ValIndexX, PeriodToTestX).
SPX is SumXYX - ( (SumXX * SumYX) / PeriodToTestX).
SSxX is SumXSquaredX - ( (SumXX * SumXX) / PeriodToTestX ).
SSyX is SumYSquaredX - ( (SumYX * SumYX) / PeriodToTestX ).

!Pearson's R and Pearson's Coefficient of Determination:
pCorrelX is SPX/SQRT(SSXX*SSYX).

!MACD code:
S is 12.
L is 25.
X is 9.

ShortMACDMA is expavg([Close],S).
LongMACDMA is expavg([Close],L).

MACD is ShortMACDMA-LongMACDMA.
SigMACD is expavg(MACD,X).

!Stochastic
StochLen is 30.
Stoch is 100 * (([Close]-LoVal([Low],StochLen)) /
 (HiVal([High],StochLen) - LoVal([Low],StochLen))).

List if 1.

—Richard Denning

info@TradersEdgeSystems.com

for AIQ Systems

AIQ TradingExpert Pro

World Leader in Intelligent Trading Software

Category Archives: Uncategorized

One of the things …….. is that the U.K. is not in great financial shape right now – comments June 21, 2016

Try our Cum Laude service for 2 weeks and receive 8 nightly updates (just like this one)

Try our Cum Laude service for 2 weeks and receive 8 nightly updates (just like this one)

AIQ monthly FREE scan – get yours now

AIQ announces the return of fundamental screening to TradingExpert Pro

Updated tickers, lists and fundamental data every
month for one price

$29.99/mo.

Investment Grade Quality with High Yielding Income

Markos Katsanos’s “Trading The Loonie”

Try our Cum Laude service for 2 weeks and receive 8 nightly updates (just like this one)

Try our Cum Laude service for 2 weeks and receive 8 nightly updates (just like this one)

Updated tickers, lists and fundamental data every month for one price

$29.99/mo.

Updated tickers, lists and fundamental data every
month for one price