A tale of two stocks

Investing Strategies Market Screens
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Here’s a story of 2 stocks which I have owned on and off the last two years.
But I’ve held only one since Jan. 2022. And here’s why…

COP- Conoco Phillips -Oil & Gas E&P
ZS- Zscaler, Inc.- Software - Infrastructure

COP an oil and gas sector and up about 50% since the beginning of the year
ZS a tech sector and down about 47% since the beginning of the year.
(Yes, the energy sector overall trounced tech- a big factor)

As a final check on what stocks I am interested in (buying, holding, selling)
I used the below stockchart.com template. Note the timeframe is weekly.

First the chart of COP- and why I looked at to stay in.

The CCI has been above 0 (closer to 100 the better) since 2021- and '22
The MACD histogram has been above 0 since 2021- and '22
The CTM has been in the green since 2021- and '22

https://stockcharts.com/h-sc/ui?s=COP&p=W&yr=2&m…
https://schrts.co/SWYXCDxI

Now, for ZS another strong stock during COVID, but many just
stuck with it, and it declined. The chart pattern shows a different story-
Change the above COP chart to show the ZS story
(or even better NET or TWLO, or any of the Saul stocks)

Starting in late '21, the following occurred:
CCI had large declines.
MACD Histogram went negative
and the CTM fell out of the green area.
So, even though I had a good run with ZS, I let it go.

Will I get back into ZS or dump my COP in the future?
Maybe, but only when
their respective chart pattern changes/reverses for these two.

Just another tool that I like to use (in addition to Moving averages , say 50 week)
Any thoughts? Say, on STLD???..

3 Likes
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TPOTO - “Any thoughts? Say, on STLD???..”

I like NUE better than STLD, although very similar charts. NUE generally will rise faster after a price deep V. In either case you’d surely want to wait for a MACD low or Blue over RED crossing.

https://stockcharts.com/h-sc/ui?s=NUE&p=D&yr=0&m…

If you like COP you might also like etf FCG. It holds 46 O&G stocks and contains COP @ 3.75% position #6. Putin/Ukraine will keep O&G rising so you probably wont see any nearterm cci or macd entry points. What can I say, “Spread the risk around”

https://bigcharts.marketwatch.com/advchart/frames/frames.asp…

I prefer MACD Standard “12,26,9” over “13,34,89” on your graph. Different strokes for different folks.

Russ

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re: NUE and STLD

Russ Davis, your charts are complex and have too much noise but, hey we do what we do that is best for each of us. The question would be, when do I buy and when do I sell.

Per Simon Sez, NUE should have been sold on 4/22/22 to help protect your ASSets.

STLD Should have been sold on 4/25/22 and then wait for the next buy signal if you are a HODLer in guise.

Quillnpenn - a poor church mouse scratching for a living as a Swing Trader for over 45 years.
------------ Vision - Multi-Millionaire…Goal - earn 1.3% - 2.5% compounded Daily per the 2.5 percent theory.

I use a much more simplistic chart than then below for buying and selling stocks per two (2) simple rules that an Eighth grader (my two nieces) can understand.
They are in the 6 digits for the past 2 years trading the Tetter Totters. eg… SPXL / SPXS and QQQ / PSQ and SQQQ / TQQQ.

However, the below charts are showing 4 or 5 strategies in plain site to use. Been using these charts for the past 45 years.

https://schrts.co/dnfragSp

https://schrts.co/qPWbVccv

https://schrts.co/hMUFbwGg note the yellow on the far right indicating a SELL signal. Let the charts tell you what to do since it is your money on the line.

https://schrts.co/vuvYpWVV

1 Like
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Quill,

You know what’s even funnier than someone misreading a price chart? Them buying stocks with negative earnings forecasts and significant insider selling.

NUE’s forecasted earnings growth of the next three years is a whopping (-48.6%). For NUE, the 3-year forecast is (-29.6%). Opps. Someone isn’t doing their funnymental homework. This brings to mind a trader’s proverb.

Ques: How do you make a small fortune in the stock market? Ans: Start with a large one.

Folks, we’re in a bear market. Now is not the time to be trying to catch falling knives.

Arindam

2 Likes