Author: Joseph M. Brennan Jr.

Using Bollinger Bands, Stochastics, and Other Indicators to Guide Stock Market Activities

Posted on by Joseph M. Brennan Jr.

Generally, I like to use a series of indicators to evaluate the risk-reward potential of various stocks and inform and guide actions that I take in the stock market. Two of these include Bollinger Bands and Stochastics. Today, in the stock market, I decided to sell some of my shares of Unisys (UIS) based on these and other indicators that I generally look at.

I initially bought the UIS stock a few months ago, because the risk-reward indicators that I generally look at appeared to be highly favorable at the time. The stock had a pretty good run prior to its earnings release on 23 July so I decided to sell half of my position then, because stocks sometimes move significantly on earnings release day, and in case the stock price declined, I wanted an opportunity to purchase the stock at a lower price. Sure enough the stock did fall significantly and my risk-reward assessment indicated the pricing of the stock became highly favorable. I then started aggressively buying as a result. I decided to sell some shares of this stock today for several reasons such as those indicated by the following chart.

Chart courtesy of StockCharts.com

Chart courtesy of StockCharts.com

My reasons for selling some of my UIS shares today included the following:

1) The stock was converging upon the upper Bollinger Band.

2) The Stochastics Chart was indicating overbought conditions since the Stochastics Line was above the 80 mark.

3) The UIS stock “reverted to the mean” (namely the 50 day EMA and had previously crossed the 20 MA which is represented by the dotted centerline between the upper and lower Bollinger Bands). I discuss this aspect in more detail in my article, Using Moving Averages and Dollar Cost Averaging to Realize Consistent Gains in the Stock Market.

4) The UIS stock has been “filling in the gap” between the 23 July gap down and the previous day’s close. Sometimes, I like to wait patiently for that to happen before selling a stock that I’m holding.

Each of these are indications that the UIS stock might be getting a little pricey and that it might be time to consider selling some shares to manage risk and have cash available to take advantage of future investment opportunities that become available when risk-reward indicators become highly favorable in nature.

The UIS stock still has the potential to continue increasing since the one year price target of $31.00 is about 34% higher than where the stock price stands today. As such, I decided to continue holding some of my shares. In addition, the fundamental data associated with the UIS stock is also favorable which often leads me to patiently hold stocks for longer periods of time than I otherwise might.

So… That’s where things stand for me in the stock market right now… I’ll let you know how things go… Either way I have a plan. If the UIS stock rises significantly, or the risk-reward becomes substantially more unfavorable in nature via the indicators that I look at, then I’ll be a seller of additional shares, but if the UIS stock falls significantly, and the risk-reward becomes favorable in nature via these indicators, then I’ll be a buyer.

Keep in mind, when performing your own investment activities, that evaluating the risk reward of investment alternatives using various indicators such as “Bollinger Bands” and “Stochastics”, and taking actions accordingly, can help you to manage risk and realize consistent gains in your investments over time. Part of being a disciplined investor, and realizing consistent gains over time, involves recognizing unfavorable conditions, taking actions accordingly, and patiently waiting until the next compelling investment opportunity arises; one where the risk-reward becomes favorable for you according to your risk profile. If you operate in this fashion you will experience much success as an investor.

A Wonderful Way to Gain a Greater Appreciation of Others

Posted on by Joseph M. Brennan Jr.

Having experienced heartbreak recently, I thought I might use this as an opportunity to write a post about appreciating others. One thing I often tell people to do is practice experiencing as if for the last time from time to time. And this especially includes those you love and care about. A wonderful way to gain greater appreciation for someone you are currently spending time with involves imagining this will be the very last time that you will see this person in a very long time. When you do this you might find yourself: (1) less eager to share and more eager to listen,  (2) seeking to capture every subtle facial expression, eye movement, and gesture, (3) smiling in love and amazement and appreciation, and (4) expressing some heart-to-heart something you’ve never told the person but always wanted to. What a wonderful experience for you. But, think about how wonderful the experience will be for the other person when you focus your full and complete love and attention on him or her and express your deepest thoughts and feelings. And every action has a reaction so don’t be surprised if you find that same love and appreciation beaming right back at you.

If you do this, you will create special, quality, loving moments all along the way. Then if something should happen where those you love and care about are no longer in your life, for whatever reason, you will at least be comforted in knowing that you spent many special, quality, loving moments together while you had the chance.

Now, sometimes others no longer being in our day-to-day lives are not necessarily related to dismal circumstances such as those involving death but due to relocations, job transfers, or something like that. Whenever this happens, I always encourage people to practice experiencing these people as if for the last time from time to time even then.

For example, you might imagine this will be the very last conversation you will have with the person in a very long time via the phone, video chat, social media, or other long distance methods. Notice how this changes you and how this changes the dynamics between the two of you. You might also use the “practice experiencing as if the last time” technique when visiting the person or when the person visits you.

All of these are wonderful ways in which to gain greater appreciation for others in our lives and to create special, quality, loving moments all along the way. So do this for yourself, and others, if you can. It can add such warmth, color, and vibrance to your life if you do this from time to time.

This and other happiness and self-improvement related tips are provided throughout my self-help oriented books: https://brighterdayslifecoaching.com/published-books-and-life-coaching-services/ 

#selfimprovement #selfhelp #selfdevelopment #intention #fulfillment #success #inspiration #happiness #relationships

Using Moving Averages and Price Averaging to Realize Consistent Gains in the Stock Market

Posted on by Joseph M. Brennan Jr.

Today, in the stock market, I decided to sell half of my shares of General Motors (GM) for a small gain. I initially bought this stock a few weeks ago, because the risk-reward indicators that I generally look at appeared to be highly favorable. However, the stock continued to fall so I decided to keep buying to price average into it. Often people are tempted to sell stocks that continue to fall, but I decided to continue buying and patiently wait at least until the stock reverted back to the mean before considering to sell the stock. The “price averaging” and “reversion to the mean” techniques are approaches that I’ve used repeatedly when experiencing initial losses to allow me to recover from these losses and manage risk. All stocks eventually revert back to their means so these techniques can be strategies you can use to improve gains, manage risk, and maintain a sense of patience and discipline when performing your investment activities. As you can see from the chart below the GM stock experienced some steady gains over the past several days and has reverted back to the 20 day Exponential Moving Average (EMA).

Chart courtesy of StockCharts.com

Chart courtesy of StockCharts.com

As such, I used this as an opportunity to sell some shares. Frequently, major moving averages such as the 20 day EMA serve as resistance zones and support zones to stocks. Since the GM stock has not yet sustained a move above the 20 day EMA I took it as another sign to sell at least part of my position. Stocks that do not sustain moves above resistance zones often decline. Selling half of my position will allow me to use the freed up cash to buy at a lower price should this decline happen and I decide to capitalize on it. On the other hand, the remaining half of the shares I own will allow me to capitalize should the stock sustain a move above the resistance zone which frequently results in significant price increases. So… That’s where things stand for me in the stock market right now… I’ll let you know how things go… Either way I have a plan. If the GM stock rises significantly, or the risk-reward becomes unfavorable in nature, then I’ll be a seller of additional shares, but if the GM stock falls significantly, and the risk-reward becomes more favorable in nature, then I’ll be a buyer. Keep in mind, when performing your own investment activities, that evaluating risk reward, taking actions accordingly, and using techniques such as “price averaging”, “reversion to the mean”, and “resistance and support zones” can help you to realize consistent gains in your investments over time.

Latest Stock Market Activity (18 Aug 2014)

Posted on by Joseph M. Brennan Jr.

So… Today, in the stock market, I decided to sell my remaining shares of the XIV ETN which I started selling last week (the XIV ETN essentially bets on a fall in volatility). It gained a little over 4% today and has gained a phenomenal gain of over 23% in the past seven days which is nearly a three and a half year gain on average. The stock still appears to have some room to run, but the indicators that I generally look at indicate that the risk-reward is becoming a bit unfavorable. So it probably made sense for me to go ahead and sell instead of taking additional risk for what might amount to be a marginal gain.

Part of being a disciplined investor, and realizing consistent gains over time, involves recognizing solid gains when you see them, taking actions to capitalize on them, and patiently waiting until the next compelling investment opportunity arises; one where the risk-reward becomes favorable for you according to your risk profile. If you operate in this fashion you will experience much success as an investor. And if you need any help with making any of these determinations, you know who to ask… Have a wonderful Monday everyone!

Latest Stock Market Activity (17 Aug 2014)

Posted on by Joseph M. Brennan Jr.

So… The strangest thing happened in the stock market Friday… I was getting ready to sell my remaining shares of the XIV ETN which had gained nearly another 2.5% (for an overall gain of about 16% over a period of a couple of weeks – well over a two year gain on average). Well, as soon as I was getting ready to sell the stock rapidly dropped. It lost about 5% in a matter of minutes! So I then decided to pursue the other side of the trade; being a buyer instead of a seller. A number of times when a stock drops rapidly it falls to such extreme levels due to the fear it generates that it bounces significantly. So I decided to put in a purchase order at a ridiculously low price, because you never know… You might just get it. And if I didn’t I could always monitor the situation and adjust my price upwards if I so desired. Well, as luck would have it, the price dropped another 5% down to the price I had made the purchase order for and I bought the shares. By the end of the day the shares rebounded and I sold them for a 6% gain which is nearly a one year gain on average in a matter of hours! No, I was not going to turn down a gift like that! In the world of investing it is not very often that you can time something as beautifully as this. So I decided to take the cash and run. I will now wait patiently for the next compelling “buy” opportunity to put this cash to work.

This is one example of why it’s good to not always be fully invested so that you have cash available to be able to capitalize on opportunities such as this. You never know when these opportunities might arise so you always want to be prepared by periodically raising cash; rotating out of investments which become less favorable such that you can take advantage of investment opportunities which become favorable over time. You won’t make winning investments all of the time, but the point is to use strategies and techniques which allow you to make winning investments for much of the time.

So… That’s where things stand for me in the stock market right now… Have a wonderful Sunday everyone!

☆°▪︎ THE STORM ▪︎°☆

Posted on by Joseph M. Brennan Jr.

It

.

m

i

g

h

t

. 

almost

.

s

e

e

m

, 

a

.

comedy . . .

–

–

–

.

.

.

i

f

–

–

–

not

.

s

u

c

h

. 

a

.

tragedy . . .

–

–

–

.

.

.

 ~ the

forces

.

t

h

a

t

.

saved

.

y

o

u

.

only

.

months

before

.

f

r

o

m

.

self-destruction

against

.

t

h

o

s

e

.

storming

shores,

–

–

became

.

t

h

e

.

very

hostility

. 

w

h

i

c

h

.

drove

.

y

o

u

.

back

.

t

h

e

r

e

.

again . . .

–

–

–

.

.

.

It

drove

.

y

o

u

.

back . . .

–

–

–

.

.

.

It

drove

.

y

o

u

.

back . . .

–

–

–

.

.

.

It

drove

.

y

o

u

.

back

.

t

h

e

r

e

.

again . . .

–

–

–

.

.

.

i

n

t

o

–

–

–

that

very

.

s

a

m

e

.

stirring,

–

–

whirling,

–

–

rage,

.

.

o

f

.

.

the

storming

hurricane . . .

–

–

–

.

.

.

 ~ the

hurricane

.

o

f

.

guilt,

–

–

blame,

–

–

abuse,

.

.

a

n

d

.

.

shame . . .

–

–

–

.

.

.

Do

.

n

o

t

.

cry,

.

. 

a

n

d

.

.

do

.

n

o

t

.

despair 

.

m

y

.

fearful

friend . . .

–

–

–

.

.

.

your

.

h

o

m

e

.

remains

where

.

it

.

h

a

s

.

always

been . . .

–

–

–

.

.

.

a

n

d

–

–

–

someday

.

y

o

u

.

may

return

.

h

e

r

e

.

again.

Reflection: This was a personal struggle-themed poem that I wrote back in December of 2013 where the affected party going through a difficult time sought comfort from family and friends by reconnecting with them and working to maintain those relationships – only to have them turn against him/her making things much, much worse. This poem was inspired by true, heart-wrenching events.

☆°▪︎ THE FAMILIAR WARMTH (OF WINE) ▪︎°☆

Posted on by Joseph M. Brennan Jr.

Were

.

y

o

u

. 

the

friendly

face

.

i

n

.

that

crowded

place,

.

.

o

f

.

.

those

spinning

years

.

o

f

.

haste ?

–

–

–

.

.

.

 ~ the

subtle

hint

.

o

f

.

familiar

joy

.

a

n

d

.

warmth,

.

.

a

n

d

.

.

warmth

.

a

n

d

.

joy,

.

.

a

n

d

.

.

joy

.

a

n

d

.

warmth . . .

–

–

–

.

.

.

 ~ just

a

.

friendly

hint

. 

o

f

.

something

familiar

within

.

t

h

e

.

stampeding

parade . . .

–

–

–

.

.

.

 ~ within

.

t

h

e

.

stampeding

parade

.

o

f

.

lost

yesterdays . . .

–

–

–

.

.

.

Did

.

y

o

u

.

smile

.

a

l

l

.

the

while,

.

.

o

r

.

.

was

.

i

t

.

merely

.

t

h

e

.

reflection

within

.

m

y

.

mind ?

–

–

–

.

.

.

 ~ the

linger

.

dancing

within

.

m

y

.

eyes ?

–

–

–

.

.

.

i

t

–

–

–

matters

not,

.

.

f

o

r

.

.

I

wear

.

i

t

.

tonight

.

a

s

.

if

.

i

t

.

were

mine . . .

–

–

–

.

.

.

 ~ I

wear

.

i

t

.

tonight,

.

.

f

o

r

.

.

I

like

.

t

h

e

.

design . . .

–

–

–

.

.

.

a

n

d

.

.

.

I

like

. 

t

h

e

.

warmth

.

o

f

.

wine . . .

–

–

–

.

.

.

 ~ yes,

I

.

like

.

t

h

e

.

warmth

.

o

f

.

wine

.

b

y

.

candlelight . . .

–

–

–

.

.

.

Were

.

y

o

u

.

the

friendly

face

.

i

n

.

that

crowded

place ?

–

–

–

.

.

.

f

o

r

.

.

.

I

wear

.

i

t

.

tonight

.

a

s

.

if

.

i

t

.

were

mine . . .

–

–

–

.

.

.

 ~ I

wear

.

i

t

.

tonight,

.

.

f

o

r

.

.

I

like

. 

t

h

e

.

shimmer . . .

–

–

–

.

.

.

a

n

d

.

.

.

I

like

.

t

h

e

.

shine.

Reflection: This was an inspirational/hope-themed poem that I wrote back in December of 2013 in reflection of how just the slightest warmth, smile, or kind gesture can put into motion positive forces that uplift, encourage, inspire, and create happier, brighter surroundings, and a happier, brighter life overall. Always remember that all you put into the lives of others, comes back into your own – and get into the practice of living in this fashion.

☆°▪︎ GAMES THAT SEEK TO ENTERTAIN (I TURN AWAY) ▪︎°☆

Posted on by Joseph M. Brennan Jr.

Some

people

love

.

t

o

.

play

.

t

h

a

t

.

game . . .

–

–

–

.

.

.

 ~ that

game

.

w

h

i

c

h

.

seeks

.

t

o

.

entertain

.

w

i

t

h

.

words

.

t

h

a

t

.

maim . . .

–

–

–

.

.

.

w

i

t

h

–

–

–

words

.

t

h

a

t

.

shame . . .

–

–

–

.

.

.

w

i

t

h

–

–

–

words

.

t

h

a

t

.

aim

.

t

o

.

humiliate . . .

–

–

–

.

.

.

The

crowd

.

feeds

upon

.

every

flame . . .

–

–

–

.

.

.

The

crowd

.

feeds

upon

.

every

grenade

.

o

f

.

bitterness

.

a

n

d

.

hate . . .

–

–

–

.

.

.

 ~ I

.

t

u

r

n

.

away . . .

–

–

–

.

.

.

I

.

t

u

r

n

.

away . . .

–

–

–

.

.

.

f

o

r

–

–

–

although

some

.

m

a

y

. 

love

.

t

o

.

play

.

t

h

a

t

.

game . . .

–

–

–

.

.

.

I

would

.

rather

fade

.

f

r

o

m

.

places

.

w

h

e

r

e

.

kindness

.

n

o

.

longer

reigns . . .

–

–

–

.

.

.

 ~ I

would

.

rather

fade

.

f

r

o

m

.

places

.

w

h

e

r

e

.

love

.

h

a

s

.

forgotten

.

h

e

r

.

name . . .

–

–

–

.

.

.

I

.

t

u

r

n

.

away.

Reflection: This was a forgotten reflective-themed gem of a poem that I wrote back in September of 2013 in reflection of not only those who routinely engage in senseless gossip and create drama – but also those that participate and do nothing to defend or protect the targets of such attacks.

☆°▪︎ THE WORDS UNHEARD (TURNS AND BURNS) ▪︎°☆

Posted on by Joseph M. Brennan Jr.

It

was

.

m

y

.

way

.

o

f

.

saying

.

without

words . . .

–

–

–

.

.

.

 ~ it

was

.

m

y

.

way

.

o

f

.

showing

.

beneath

.

t

h

e

.

blur . . .

–

–

–

.

.

.

b

u

t

–

–

–

the

words

.

remain

unheard . . .

–

–

–

.

.

.

a

n

d

–

–

–

the

meaning

.

undiscerned . . .

–

–

–

.

.

.

leaving

.

t

h

e

. 

words

.

t

o

.

stir . . .

–

–

–

.

.

.

a

n

d

–

–

–

the 

images

.

t

o

.

merge . . .

–

–

–

.

.

.

a

s

–

–

–

the 

haunting . . .

–

–

–

.

.

.

taunting . . .

–

–

–

.

.

.

lost

opportunity

.

burns . . .

–

–

–

.

.

.

a

n

d

–

–

–

turns . . .

–

–

–

.

.

.

a

n

d

–

–

–

burns.

Reflection: This was a personal struggle-themed poem that I wrote back in May of 2013 where the affected party seeking some kind of reconnection or reconciliation cannot find the words or actions needed to bring about a successful resolution. And he or she remains haunted by the lost opportunities for making this happen.

☆°▪︎ TO THE MOON (I WOULD HAVE FOLLOWED YOU) ▪︎°☆

Posted on by Joseph M. Brennan Jr.

I

would

.

h

a

v

e

.

followed

.

y

o

u

. 

to

.

t

h

e

.

moon,

.

.

i

f

.

.

you

.

h

a

d

.

asked

.

m

e

.

too,

–

–

back

.

w

h

e

n

.

I

.

wanted

you . . .

–

–

–

.

.

.

 ~ I

would

.

h

a

v

e

. 

followed

.

y

o

u

.

to

.

t

h

e

.

moon . . .

 –

 –

 –

.

.

.

b

u

t

–

–

–

did

.

y

o

u

.

truly

believe

.

I

.

w

o

u

l

d

.

choose

.

t

o

.

be

.

t

h

e

.

fool . . .

–

–

–

.

.

.

w

h

o

–

–

–

would

run

.

t

o

.

you,

.

.

j

u

s

t

.

.

because

.

y

o

u

.

today

.

n

o

w

.

say,

.

.

y

o

u

.

.

want

.

m

e

.

too ?

 –

 –

 –

.

.

.

 ~ just

because

.

y

o

u

.

today

.

n

o

w

.

say,

.

.

y

o

u

.

.

want

.

m

e

.

too.

Reflection: This was a romantic-themed poem that I wrote back in April of 2012 where the romancer refuses to play along when the object of his/her affection in the past suddenly becomes more receptive.