Have you ever sold a stock a few days before it shot up in price?
Did you ever hold a stock too long as it rapidly diminished in value?
The Measuredmarkets Inc. “Early Warning Service for Stocks” can help you avoid situations such as these. Measuredmarkets’ Early Warning Service analyses Common Stock trading data and issues “Warning Flags” when an individual stock breaks away from its usual trading patterns.
The Early Warning Service uses the actual number of trades/transactions each day, as well as closing price and total volume to generate the Measuredmarkets Inc. “Early Warning” analyses. Using the number of trades in this manner is a new development in stock market technical analysis.
The process used is patented.
The mathematics used in the process is based on that stock’s own trading pattern, and adjusts automatically for whether a stock is normally volatile or generally stable. It also provides automatically for a change in the stock’s behaviour from volatile to stable, and the reverse.
All you need is a web browser, preferably version 5 or better. Reports for each market group and for individual stocks are made available to subscribers for each trading day, in Summary and Detailed forms, using the browser of their choice.
Whenever a stock moves outside what is its normal trading range, over any one or more of the nine different time periods used, the Early Warning Service generates a “flag”. Each stock is analysed for Closing Price, Total Volume and Total Number of Trades/Transactions for every one of the time periods.
The maximum number of flags a stock can generate in one day is 27, provided full trading history is available for four years. An adjustment factor is used in the cases where full historical data is not yet available.
The Early Warning Service uses a complete trading day’s information for each exchange. The analysis is performed “overnight” (relative to Eastern Standard/Daylight Time), and is normally available to North American subscribers by early morning and by market opening time for European subscribers.
The reports can be customised to show only the stocks in your stock basket, which subscribers set to their own list requirements. That way only the stocks that interest you are listed on a Summary. If new warning flags are generated by the Early Warning Service for one of these stocks, the report will tell you. Then you can look at the detailed report for any of those stocks.
Since the stock basket is unrelated to your actual holdings, you can construct it to suit your own purposes. Generally, investors include in their basket both stocks that they currently own, and stocks they are considering purchasing.
Yes. These lists are provided for each Exchange group. All stocks that have generated at least two new flags since the previous trading day are on the list. Sometimes a stock will show on these lists for a day or two, then not appear for another day or so, before returning.
Not always.
Flags can be generated by the market’s reaction to external events, such as natural disasters, central bank changes to interest rates, and other influencing factors, most of which will feature prominently in news reports.
Flags are always generated by unusual activity. That activity can be because traders reacted to a rumour, to colleagues’ opinions, or because of specific buy/sell orders from a major client. The unusual activity may -- or may not -- be based on fact. It may -- or may not -- be based on good intelligence regarding upcoming events. It may -- or may not -- be related to good guesses on the part of market participants.
At the very least, go through the following steps:
- See if the “flags” might be connected to some already known news item or items. If there are some significant recent news stories on the stock, its competitors or industry, then these stories might “explain” the new flags.
- See if the stock generates more flags over the next couple of days. Large block trades by institutional investors might generate some Volume flags, without necessarily leading to any other flag activity.
- Has the market as a whole, or the particular industry group been moving significantly? That might be why the flags have appeared for a individual stock.
IF there are no relevant and recent news stories, major market or industry-group moves, then consider that these flags could be an “EARLY WARNING”.
M2NDXs are different from the indexes usually reported by business news services and market commentators. Commonly used composite indices such as the S&P 500 or the S&P/TSE composite indices use just a portion of the exchange’s listed stocks. So it’s really difficult to tell what the WHOLE market did, and significant information could be lost.
Measuredmarkets’ M2NDXs use ALL of the common stocks on that exchange, not just a selected few. Because of that, it is a more reliable, less biased reflection of market activity as a whole.
The M2NDX developed by Measuredmarkets Inc. are a measure of the total behaviour pattern of all common stocks in a particular market. The reports for these “M2NDXs” are made available for each stock market covered and a special “combined price” version for the covered North American markets is also shown.
M2NDXs are made available on the public/free part of the Measuredmarkets Inc. web site so no subscription is necessary to view them.
See the “Case Studies” page on this site for some examples.
Additional examples will be added to the site from time to time.
New York Stock Exchange
NASDAQ National Market
Toronto Stock Exchange
American Stock Exchange
NOTE: The Measuredmarkets “Early Warning Service” for stocks does not cover every instrument traded on the covered exchanges. It generally restricts its analysis to common stocks and units. Warrants, rights, preferreds, convertibles and instruments that have pre-determined “lives” such as split shares etc. are excluded. |
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