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November 19, 2017 
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How To Use The On-Line Put & Call Tactician Service

Click on any of the numbers above to be directed to Column Heading Descriptions.

The Option Stock Surveillance feature of THE PUT & CALL TACTICIAN provides technial data on most option stocks. 
The listing is arranged by industry to allow easier stock and market analysis within groups.

 


 

Column Heading Descriptions

1. Power Index Displays, in a single value, a stock's current technical posture. Zero is neutral. Positive values show proportionately greater strength than average. Negative values show proportionate weakness. The majority of stocks will have values between minus 6 and plus 6.
2 - 4. Grade (S/I/L) In this column, three measures of an option stock's relative strength (similar to grading students in the classroom) are given. This type of grading is based on the popular probability distribution known as the normal of "bell shaped" curve. When this grading approach is used, usually 10% of the students receive A's, 20% receive B's, 40% receive C's, 20% receive D's, and 10% receive F's. Students know at a glance where they stand relative to the group. THE PUT AND CALL TACTICIAN grades option stocks in a similar manner.

The letters "S", "I", and "L" in the column heading correspond to short, intermediate, and long term relative strength values of option stocks to convey the stock's short-term  (most recent 1-2 weeks), intermediate-term (most recent 2-6 week), and long-term (last 6 months) historical relative strength values. For example, a stock which grades "B/A/F" displays good short-term historical relative strength (shown by the "B"), and very poor long-term historical relative strength (shown by the "F"). This communicates the story of a stock changing character, and in this case, the trend is one of improvement.

Another use of the letter grades is to indicate long term buy and sell points for stocks. Long term investors should be buying A 's and B 's, and selling D 's and F 's, in conjunction with the numeric component of the Power Index. Sell on a decreasing numeric trend and buy on an increasing numeric trend. For example, a stock that is carrying a grade of A or B offers a long term buy signal when the numeric component of the Power Index begins rising after making a trough. Conversely, a stock with a grade of D or F should be sold when the numeric component of the Power Index begins trending downward after a peak.

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5. SYM BOL Ticker symbol for stock.
6. EX Exchange where the options are traded.
"A" = American;
"C" = Chicago;
"P"  = Pacific;
"X" = Philadelphia;
7. CY Cycle of options offered
"J" = January/April/July/October
"F" = February/May/August/November
"M" = March/June/September/December

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8. CUR PRICE Current price of stock at close of market Thursday
9. PCT CHG Percentage of change in price since a month ago.
10. SUP PRT Support, price-wise for the stock. Applicable only for stocks with a technical code of 1, 2, and 4.
11. RES TCE Price resistance for the stock, if it exists. Applicable only for stocks with a technical code of 2, 3, and 4.
12. VL TY Volatility of the underlying stock. A value of 35 is average. This estimate of future relative price action is used in the calculation of a stock's trading increment.
13. PERCENT 50-DAY AVERAGE The stock's current price as a percentage of its current 50-day average price. This indicates if a stock is overbought or oversold. A value above 120 usually indicates an overbought stock, and a value less than 80 indicates and oversold condition.

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14. TECHNICAL CODE Conveys via "1, 2, 3, and 4, a stocks chart pattern.
1's are in upward trends and have the greatest upside potential.

2's are in upward trends, but are temporarily leveling or pulling back.
3's are in downward trends and have the greatest downside potential.
4's are in downward trends, but temporarily improved.

Viewing the codes in a 4 quadrant format, their relationship and the manner in which a stock or group of stock cycles through the four codes becomes more apparent. As the figure shows, stocks generally rotate counter-clock-wise through the codes. This is depicted by the circular center arrow.wpe1.gif (4699 bytes)

Option stocks coded 1 and 2 are in uptrends and codes 3 and 4 are in downtrends. The heavy horizontal line between the two code groupings in the figure bisects the uptrending stocks (upper two quadrants) and downtrending stocks   (lower two quadrants).

Uptrending stocks tend to oscillate between code 1 and 2 status as arrow "A" shows. When a code 2 stock moves to code 1, it is labeled "Re-established-Buy", one of the PUT & CALL TACTICIAN'S strongest buy signals.

Downtrending stocks in the lower two quadrants (code 3 and 4) tend to oscillate between the quadrants as arrow "B" shows. Code 4 stocks moving to code 3 status are labeled "Reconfirmed Sell", one of our strongest sell signals.

Stocks move between the upper and lower planes in a manner shown by arrows "C" and "D". When large numbers of stocks make code 4 to code 1 moves (arrow "C"), or code 2 to code 3 moves (arrow "D"), this signals - with a high possibility - that a change in intermediates market direction has taken place.

The coded bar graph at the bottom of Page 2 weekly shows the portion of stocks in each of our four technical code categories. This graph and the lead and lag market lines are primary tools to forecast market direction. This data is translated into easy-to-interpret Market Condition Codes on each telephone Hotline update.

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15. COMMENT (TECHNICAL) Describes option stocks qualitatively using a stock's Power / Index value, its technical code, and moving average. An interpretation of each technical comment is given:
 
TECHNICAL DESCRIPTION *****INTERPRETATION*****
*BUY WATCH** A new code "1" stock. Be on the alert to buy on further strength.
A POWERHOUSE Strongest group of stocks under surveillance. A code "1".
EXCELLENT BUYING A code "1" that is stronger than "emerging", but not as potent as a "Powerhouse".
EMERGING A code "1" stock for more than one week and displaying good upside characteristics relative to other stocks.
QUIET A code "1" that shows little upside promise in the near term.
**RE-ESTABLISHED BUY** A new code "1" after having been a code "2" for at least one week. This bounce-back to code "1" status is one of PUT & CALL TACTICIAN's most reliable buy signals.
BACKING AND FILLING A code "2" stock that has fallen back from higher prices to "fill" lower price areas.
STRONG BUT TOPPING A code "2" stock that is leveling after having advanced dramatically. Watch for these stocks to break resistance and become "Re-established Buys".
TRENDING DOWN The weakest code "2" category. Most are near a code "3" sell category.
**SELL WATCH** A new code "3" stock. Be on the "alert" to sell on further weaknesses.
AMONG THE WEAKEST The weakest groupings of code "3" stocks. In bear markets, they are severely broken down. In bull markets, they are laggards.
A PROBLEM STOCK A code "3" showing signs of accelerating its downward descent.
GUARDED A code "3" starting to show weaker. Stronger than a "problem stock".
DRIFTING A code "3" not broken down yet. Stronger than "guarded" category.
WEAK BUT LEVELING A new code "4" that has stopped falling, at least temporarily.
LABORING A code "4" struggling to go up but without much success.
IMPROVING A code "4" that has shown upward relative price movement, but overhead resistance is still indicated.
TRENDING UP The strongest code "4". On the verge of becoming a code "1".
**RECONFIRMED SELL** A new code "3", just broken down from an attempt to rise in code "4" status. One of the most reliable signals on which to take action.
16. INDUSTRY HEADING  The heading for each industry group in this section is centered on the page.  Plus bars (++++) are added to the right of the heading, or minus bar (----) are added to the left of the heading, to display positive or negative industry strength respectively.  The amount of strength or weakness is indicated by the length of the bar.  Although this information is available by inspecting individual Power Indices within an industry, a quick visual scan of each industry heading will allow you to select strong or weak industries much faster.   Always double check the individual Power Indices of stocks within the group to find the source of weakness or strength, and whether its base is broad or narrow.
 

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