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Why is AMD marked as "Almost Sell". Is that short term?
Because I see the value price of AMD is super in the green.
Growth rates look good too.
What do you think?
Re: Why is AMD marked as "Almost Sell". Is that short term?
"Almost Sell" is technical indicator or TI Alert. It does NOT depend on the fundamental value of a company or its financial strength. In general, we are using fundamental analysis, i.e. growth rates and Value Price, to identify great companies and technical analysis, i.e. price chart analysis, to spot the best time to buy or sell.
Stock2Own TI Alerts are based on the price chart and are following "general interpretation" of indicators used. For example, if current market price is below moving average, it is usually considered as a "negative" or "sell" signal and vice versa - if the price is above moving average, this is usually a good signal. Stock2own is also catching "crossing" events and signal considered a "buy" or a "sell" signal on a day when the price line is crossing the moving average line. If the price stays above moving average, that would be considered a "hold" and so on. Below is the description of all possible TI Alert values.
Technical Indicators Cumulative Alert meaning
Buy - All charts moved to the "positive" area.
Almost Buy - Some of the charts moved to the "positive" area.
Sell - All charts moved to the "negative" area.
Almost Sell - Some of the charts moved to the "negative" area.
Hold - No indicator changed direction. If you have an open long position, you would better keep it, there is no reason to sell.
Stay Away - No indicator changed direction. However, technical indicators recommend that you should not have an open long position.
Mixed - Alert is unknown: some indicators suggest buy, others suggest sell. So, be ready to act.
Thank you for the reply.
It seems to me that when I plan to buy stock for long term (years), I don't really need to watch the TI Alert all the time.
Well, maybe wait with buying until it tells me to and if I want to sell wait for that indication?
The MOS Price is currently above the stock price. So from what I understand, that means I can get it at a discount.
Am I right about that?
Long term (years) vs short term investing.
I think you are right, this question is about the difference between investing ( value investing in particular) and trading - long term investors do not usually pay attention to the short term price trends on regular basis; they usually evaluate stock intrinsic value (or fair price) when new information become available and definitely are monitoring quarterly reports to see if stock is still attractive and has enough MOS. So periodical price evaluation is required anyway.
Short term traders cares much less about fundamental value and pay more attention to the technical indicators, price charts sand TI Alerts.
Though, there are plenty of people who are using both types of analysis on regular basis. For example, when I pick a stock to invest in my IRA account, I usually plan to hold it for long term (1+ years). At the same time, quite often I want to buy a stock that will allow me to sell covered calls against it (a simple but very effective cash flow strategy). So, when I'm buying a stock, fundamental analysis is very important to me. But when I own the stock and want to sell covered calls to generate cash flow, I'm paying attention to TI Alerts, because it helps identify the best time to sell call with the low probability of being assigned.
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