Saturday, October 30, 2010

Buy & Sell based on RSI...it works

RSI is the most valuable tool to take a buying position or initiate selling.Those who do not factor RSI need to understand that they are risking upto "10%" of their gain.For long term holders risking upto 10% of gain may not matter as stocks in uptrend goes much higher.....BUT never in straight line.

As a rule i am extremely nervous when RSI hits 80..so i sell or do not buy & optimistic when RSI are in 50..so i take a position or stay put.....

Like any technical indicator RSI is not 100% accurate as stocks do overshoot in UP or DOWN mode..means sometimes it CAN go to 90 or to 30.....

SO...make your decision factoring fundamentals & your comfort level ....

After knowing all of the above..here is the list of stocks with their RSI for decision making to buy or to sell or do nothing :

LVS 80.46
CSTR 80.11

RIMM 74.11
RVBD 71.76
FFIV 70.61

PCLN 67.02
BIDU 65.66
SLW 65.01
MA 63.50
NFLX 62.65
QCOM 62.34

AMZN 59.94
LDK 56.47
AAPL 54.80
LULU 50.97

SOL 48.46
KGC 47.89
TSL 45.37
YGE 42.70
FSLR 41.61
EGO 40.41
SOLF 40.31

ISRG 38.78

I have grouped the above list to highlight many stocks which are trying to say something for short term.....

Next post by noon Sunday.

BLOG does NOT give buy or sell.

Saleem

7 comments:

Troy House said...

great post. posting your after long time. is this rsi on monthly chart, and can give you some more information on how do u generate that number.

Stocks100 said...

Hi Troy,

Nice to see your post again.

This is based on 14 day RSI based on last 5 months......

If you go to stockcharts.com ....then select gallery view..put any stock ticker then you will get a very comprehensive chart/target/CMF/..once you have reviewed that ..then select "default sharpchart" on top left hand......then you will get RSI number for the ticker selected...

The best part is that it is free & is updated in real time..so you can see the changes in RSI as it is happening..it is not streaming but you can keep clicking to get real time RSI......

Hope it helps.

Saleem

Troy House said...

thanks a lot, very helpful.

madmax said...

YOU did it again

great blog

I never stop relearning things


thanks for sharing

I too sold the LVS --- I could not catch SOLF

do ya think it is to late for BIDU, Or is next week to topsiy turviy??

thanks again

Stocks100 said...

Hi Madmax,

Thanks for your feedback.

BIDU may be a little early based on RSI...AAPL is a better bet based on RSI....

Buy BIDU IF it drops $2...then RSI will be in buy zone....

Locking profit never hurts..sometimes being greedy can risk gains....

Saleem

psrajpal said...

Very helpful indeed.

Thanks Saleem. Your blog is very informative and helpful.

Paramjeet

Stocks100 said...

Hi Paramjeet,

Thanks for your feedback.

BLOG is there to create awareness about many things to help in decision making.

Wall Street is a minefield which needs a "crtical" view or else we all operate with a herd mentality.

Good luck in your trading.

Saleem