Recently in Equity Timing Signals (Buy/Sell) Category
Despite raising $ 6 billion in capital Lehman still on a FusionIQ Sell Signal

Lehman Bros. (LEH) raised $ 6 billion in new capital to shore up its balance sheet after suffering $ 2.8 billion in losses.  However as today's price action shows even in the face of this seemingly good news LEH shares are selling off and still on a new FusionIQ timing sell signal.

QQQQ, tech proxy still on FusionIQ BUY signal

Tech issues have been acting stronger than the broader market for a few months now.  This looks like a rotational trade out of commodity sensitive issues, which have been leading for several years and back into techs.  In that vein the Powershares QQQQ, a tracking stock for the 100 largest issues on the NASDAQ and a great proxy for techs, remains on its’ FusionIQ BUY signal from May 1st (see chart below)

New FusionIQ Volume BUYS

Please find in the table below a great example of how FusionIQ’s custom screener can produce targeted trading ideas.  In this screen which we have run on this blog several times we use FusionIQ’s powerful custom screener to find stocks that are on new FusionIQ timing BUY signals but have traded above average volume relative to their 12-day average volume flow.  The screen in essence is looking to see where aggressive institutional trading is occurring.

Financial Sector Beware LEH and CIT
Every day, we run a series of screens, large and midcap, buy & sell, breakout and breakdown.


Today, our Large Cap Sell Screen identified Lehman Brothers (LEH) as a Sell. It has a current master score of 33 (out of 100) and has an abysmal technical score of 17.  It went to a sell signal back in March around $52, and two weeks later, traded as low as $20.25. It recovered somewhat, flipping to neutral around $44.  


Its now back on a sell signal, with a $20 price target. .


The MidCap Sell Screen found a smaller financial: CIT Group (CIT). It also went on a Sell. Same set up as Lehman Brothers: First sell signal was in March about $16, fell to $6.45 a few weeks later, back to a neutral a month later.   Now, CIT is back on a Sell/Short rating, with a target about 30% lower.


Traders who short stocks should always work with stop losses. The financial sector, with outside investors, have been very volatile, with squeezes occurring regularly.






















FusionIQ Custom Screener - Above Average Volume Buys

Please find in the attached table a list of above average volume BUYS cultivated off the FusionIQ custom screener.  This screen looks to find stocks that are on new FusionIQ timing BUY signals but are moving up on above average volume a sign that institutional accumulation (a driver of equity prices) is building.

Revisting an earlier post " Is the Magic Back ?"

Back in February we published a blog post on Walt Disney (DIS) after Barron's wrote a glowing story entitled " The Magic is Back " about Walt Disney and its prospects for the future. We said back then that Disney's FusionIQ ranking was only a 58 out of a possible 100 and that at this point with only a 58 ranking it is still a bit early to believe the magic is back for good. We then suggested the best plan of attack was to wait for its FusionIQ rank to move back into bullish mode again by seeing its ranking score move back to 70. 

Well for the first time in several years DIS is back to a FusionIQ score of 70. That said we now concur with Barron's that Disney may indeed be back !

Vytorin problems for Merck (MRK) and Schering Plough (SGP)
We looked at a few stocks that have been in the news recently -- and a few big Pharmas stood out as recent Sells.

Then this morning, we noticed that Merck (MRK) and Schering Plough (SGP) had a problem with their two widely prescribed cholesterol-lowering drug, Vytorin and Zetia.
The stocks are down 17% and 27% today on the news was released.

But you didn't have to wait for the announcement to exit these -- they have been poorly ranked for quite some time in our system -- based on Friday's close, Merck was 39 and Schering Plough was a 17 out of 100.

Here are the 6 month charts, with Buy / Sell signals:

Sell Signal: Bear Stearns (BSC)
Fusion IQ Rank has been consistently negative on Bear Stearns over the past 6 months.

The most recent sell signal was on Friday, and since then the stock has gotten whacked:

Buy and Sell Signals
One of the things we like to do with the Fusion IQ Rank software is watch the latest Equity Buy/Sell Signals for intertesting names.
On the home page are displayed of all stocks that have new timeliness buy and sell signals on any given day. The stocks are then sorted by Technical Rank; Descending order for new Buys and Ascending order for new sells.
Out of 143 equity buy signals, and 156 sell signals, here are the top 10 of each


FusionIQ QQQQ Sell Signal Still intact
The NASDAQ 100 Tracking Stock (QQQQ) remains on its recent FusionIQ Sell Signal (initiated 1/8/08).  Since the sell signal the index has fallen over 13.2 % in a short period of time and remains vulnerable.
Get this signal as well as hundreds of other ETF trading signals daily by subscribing to FusionIQ at

Barron's Review with FusionIQ Ranks
One of the lead stories in Barrons this weekend was on the S&P Packaged Foods Index.  The article suggested that the food stocks may have fallen to far, right along with the broader stock market. Historically prized by investors for their defensive characteristics in times of turmoil, the stocks instead have headed south amid worries about the impact of sharply higher commodity costs on industry profits.  Barrons suggests in their story that valuations for the S&P Packaged Foods Index components are attractive and with the companies paying solid dividends these companies are now worth taking a look at. 
As seen below we ran these stocks through our proprietary FusionIQ Software and the results weren't pretty with only BG and MCD registering bullish readings of 70 or greater.  The remaining stocks in the index have extremely low FusionIQ scores suggesting they are likely to be out of favor for quite sometime.

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