Cornerstone Growth

Using similar criteria to Wall Street legend William O'Shaugnessy's Cornerstone Growth Fund I look for undervalued stocks in strong industry groups showing long-term relative strength. Check them out:
CALM - Uptrend with momentum, 10.5% dividend yield
AKS - Support bounce off a 30-day moving average
KOP - Pennant flag break out, 1.86% dividend yield
CQB - Support bounce off a 30-day moving average
FLR - Support bounce off a 30-day moving average beware of $170 as resistance but allow room for a break
ACU - Retesting an ascending triangle
BG - Support bounce
WMT - Pulling back look for a bounce or bull flag, 1.64% dividend yield
NM - Broke resistance w/ volume, 3% dividend yield
GSI - Awesome fundamental stock, Bull flag for a target of $13.50 in the short-term but don't be afraid to let it run
MEA - Forming a bull flag as it is retesting a major resistance break from last month
MAN - Last 6-months has been consolidating and reversing now making a higher low

ETF Watchlist

If you are looking for diversification here are some ETFs that I like.
Basic Materials XLB - Broke out last week and is retesting
Consumer Staples XLP - Still trending sideways but is showing relative strength, historically a very strong industry group during a recession
Energy XLE - Broke resistance about a month back and is finally pulling back some, buy on the bounce
Utilities XLU - Low interest rates drives investors to the markets looking for high dividend yields

Value and Dividend Watchlist

This is a list of stocks I like that are fundamentally strong, low valuations, great dividend income, and are uptrending or within a basing pattern.

Symbol - PE Ratio - Div Yield

AZN - 11 - 6.79%

TOT - 8.5 - 4.00%

BDK - 8.5 - 2.54%

COP - 11 - 2.36%

TCK - 12 - 2.19%

MT - 11 - 1.80%

SAFM - 9 - 1.44%

Clear Message from Universal Translators

Reed Elsevier Plc (RUK)

Big money movers seem to be sending a message on Reed Elsevier Plc (RUK) the last two days, while much higher than normal volume has appeared. Breaking up to new all time highs a window has opened as the stock gapped higher. While this stock specializes in many different areas of information technology and retrieval one that is most interesting to the Ferengi is that work it has done in the are of Machine Translation as a partner in the Babylon translation technology. One caveat I must highlight is before our recent volume in the stock it was only trading about 50,000 shares a day. I will usually pass up a stock with such little liquidity, especially, since I rely on stop losses so much. It is to easy for a stock to be manipulated by big money and market makers.

BTW as a rugby fan how can I pass up a stock with a ticker symbol of RUK?

Welcome to Trading the Ferengi Way

We are a couple of traders that want to have some great discussions and give our thoughts on trading in the markets. We have many, many insights and need a place to put it all. We needed a venue to discuss everything that we have in our big Ferengi heads. We want to show real life examples and insights with a Ferengi twist. We will be using the Ferengi Rules of Acquisition as a kind of play book and model.

I guess the only thing to say now is Hang On And Enjoy The Ride.