JDS Uniphase Looks Over-Extended, Here’s Why
TradingMarkets subscribers have access to
16 quantitative
stock indicators and another
17 quantitative market bias indicators. These indicators are derived from
our proprietary database that includes millions of trades, and designed to give
you a short-term trading edge.
There are 8 bullish and 8 bearish stock indicators, providing trading ideas for
both rising and falling markets. When used in conjunction with the market bias
indicators, traders can potentially achieve a substantial edge.
Each day, we provide free open access to one of these proprietary stock
indicators. If you would like to access all 16 stock indicators, 17 market bias
indicators, along with many other tools, click here for a free
focus list
that comes from our
2-Period RSI Above 98 list, which will be available until around 1 PM
Tuesday afternoon.
These are stocks that have a 2-day RSI reading above 98 and are trading below
their 200-day moving average. Our research shows that stocks trading
below their 200-day moving average with a 2-period RSI reading above 98 have
shown negative returns, on average, 1-day and 1-week later.
Historically, these stocks have provided traders with a significant edge. To
learn more about our research into stocks that have a 2-period RSI above 98, and
how to use this information,
click here.
Let’s take a closer look a chart from the list above. Keep in
mind that this is only one example from the indicator list, and that we are not recommending a trade
in this particular stock. Traders should always create individual focus lists
and radar screens based on their own information and trading strategies, instead
of blindly following other people’s recommendations.
JDS Uniphase
(
JDSU |
Quote |
Chart |
News |
PowerRating)
JDS Uniphase (JDSU) is trading below its 200-day moving average, in a
confirmed downtrend. Simply stated, this stock has lost more over the past 200
days than it has gained. By technical definition, this is a weak, downtrending
stock. The TradingMarkets mantra is to “buy weakness, and sell strength,” and
that is what we would be looking to do here. Our database of literally millions
of trades proves that an edge to the short side exists when a weak stock pulls
back to extended, strong levels. The 2-Period RSI levels above 98 confirm this
stock’s price as overbought. As the price per share of JDSU becomes more and
more extended to the upside, the bearish edge continues to grow. Just today, on
7/10, JDSU jumped over 4% to create an even greater edge to downside.
You can find the full list
here. Also, Check out our
latest quantified research articles
here. If you don’t already have a TradingMarkets subscription, click here
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7 Trading Ideas for Today,
and develop your own watchlist of stocks with historically-backed edges.
John Lee
Associate Editor
Reminder: We are in no way
recommending the purchase or short sale of these stocks. This article is
intended for education purposes only. Trading should be based on your own
understanding of market conditions, price patterns and risk; our information is
designed to contribute to your understanding.