Stocks Breaking Down on Volume

My partner Kevin sends me a reminder this morning that "When the markets break down investors look for alternative ways to make money such as short selling."

Below is a daily list that FusionIQ generates highlighting stocks that have broken down on significant volume, typically a sign of large institutional selling.

We use these as a source of Shorting ideas . . .
>
click for jumbo table
Sell_signals

Table courtesy of Fusion IQ

>
The next release of Fusion (2.0) will be out after Labor Day. 2.0 has many new features and user interface improvements, including a highly customizable home page. 

We may set up another free trial again if there is any interest.

Print Friendly, PDF & Email

What's been said:

Discussions found on the web:
  1. bh commented on Aug 19

    Free trial would be good, but the last one was a complete nightmare. I literally just stopped being charged last month for the december 07 free trial. you need to automate cancellation of the accounts or set up some other system to avoid that disaster.

    also, any info on what the basis is for the system and any historical backtesting would be cool. it was tough to figure out what the rationale was for the recommendations.

  2. Kevin commented on Aug 19

    Yeah, we had some problems with the early billing system — we use authorize.net now — seems to be a huge improvement.

  3. Eric commented on Aug 19

    Stocks may be breaking down, but I’d be hesitant to short given that Cramer indicated last October, January, April and July that a bottom was in.

  4. VennData commented on Aug 19

    “I got you in a stranglehold, Baby. You best get out of the way….”

    — Ted Nugent, ‘Stranglehold’

    The Nuge’s politics tend to skew to the more conservative… and a conservative “Don’t buy, hold, but hold cash” strategy is what I’m suggesting now and for the foreseeable future (which is about the same time period as two and a half ‘going forwards.’)

    Oh, and don’t drink and shop.

  5. J. Bridges commented on Aug 19

    SEC & announcing new short selling regulations in the coming weeks, just passed on my terminal…

    This should really inspire confidence in the market, considering Washington is now following the G. Depression playbook in market interference. Gee, I wonder if desks will just find ways around the soon to be re-instated up-tick rubbish?

    Barry, would you mind posting– at some point– on the historical precedent surrounding these sorts of actions by the SEC and short sellers. At a time when every clown on TV is talking about a bottoming process, these sorts of regulations usually precede vicious and painful drops in equities (or, massive deflationary spirals).

    JDB
    Chicago

  6. Jim D commented on Aug 19

    Yes, there’s interest :-)

  7. Tim commented on Aug 19

    Definitely interested in another free trial after the update is released.

  8. PHB commented on Aug 19

    free trial? You bet…

    Let us know know!

  9. OldEurope commented on Aug 19

    Fusion IQ FAQ: “…however the system has been rigorously tested. The results can be viewed by clicking (here;)”

    The link is still missing since you first promoted FusionIQ, the faq is very short anyway maybe you can get somebody to either delete it or offer the link.

  10. Toro commented on Aug 19

    NYSE composite volume is going to come in under 4 billion, just like the past four days. That’s the lightest volume since May. The sell-off today and yesterday are the lightest volume days since mid-June (excluding July 4). That said, the general trend in volume has been down during this rally. Thus, there is no reason to believe it is anything but a bear market rally.

  11. DR commented on Aug 19

    Very interested. I’m currently sub’d to RR&A monthly newsletter. Where’d all the content go? Maybe FusionIQ more better…

  12. malabar commented on Aug 19

    Is FusionIQ just a software system for ranking stocks?

    Barry, do you do any kind of market newsletter?

  13. Trevor commented on Aug 19

    Who said free trial?

    Looking forward to trying it out.

    Barry – keep up the rigourous analytical work. It’s refreshing.

  14. Tom commented on Aug 19

    I’ve love to try a free trial after the new version comes out. I would also like to know a little more about how the system works. Black box “systems” with totally unknown mechanics don’t interest me. Too much like the way the Hedgies and Quants have been working.

    I do read your columns daily. Great stuff. Keep up the good work.

  15. Matt Rafat commented on Aug 19

    EWM and EWH are on your short list? What’s the rationale?

  16. Brian commented on Aug 20

    Free trials and I get along famously…

  17. Hugh commented on Aug 20

    A free trial would be great!

Posted Under