Hi guys, I’m lucky enough to have early access to Swamicharts indicators so I decided to post some possible long setups for the coming week. Below each chart you will see Swami Predict and Swami Volume. Unlike traditional indicators all the Swami indicators use color coding to make the data visualization much easier and more useful.
Swami Predict is a momentum oscillator that measures the speed and change of price movements using advanced digital signal processing (DSP) filtering techniques. Green indicates a bullish condition, red indicates a bearish condition, and yellow is indeterminate.
Swami Volume shows smoothed volume deviations from recent averages. This is unlike most volume indicators that will showcase so much information and “noise” that it becomes difficult to analyze. Higher relative volume is shown in white and lower volume is shown in blue.
1. My first prediction is for SDS (ProShares UltraShort S&P500) ETF to continue it’s upswing. SDS is a fund that seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of the S&P 500 Index. By analyzing the Predict indicator one can easily tell the newly formed buy signal illustrated by the green coloring in the lower right portion. The volume could stand to be a bit more (whiter) to really push this one but under close observation I can infer a slight increase in buyers entering the position.
2. My second long prediction is for NFLX (Netflix). Everyone knows what this company does but just to be clear. Netflix provides online movie rental subscription services in the United States. The company offers its subscribers access to a library of movie, television, and other filmed entertainment titles on digital versatile disc (DVD) and streaming through their website. I actually believe that, based on fundamental reasoning, Netflix is not a sound investment. You can read about why I think so at schn1eck7’s blog post. However, that doesn’t mean Netflix is not poised to continue their upward movement in the short term. In fact, that’s exactly what I expect them to do after reading the indicators. Notice the green Predict coupled with a slightly increasing volume in the chart below.
3. Finally, I believe I’ve found a great short in HRBN (Harbin Electric Inc). Harbin Electric, Inc., through its subsidiaries, engages in the design, development, manufacture, supply, and service of electric motors in the People’s Republic of China and internationally. The company’s product lines include linear motors and integrated systems, automobile specialty micro-motors, and industrial rotary motors. On the heels of a surprisingly lower earnings report the stock has been falling since early May. Given the red Predict and GREATLY increasing volume I believe the stock could continue down for some time.