Column AS – Josephine

Cameron : Column AR asks whether or not the stock is a Josephine. If a stock has positive sentiment (ie its above its buy and sell lines) BUT it’s in a downward trend (ie today’s price lower than the price at the end of the previous month), then it’s a ‘Josephine’ (as in, “not tonight, Josephine”).

It’s technically a buy but we wouldn’t actually buy it until it shows an uptick, which we define as ‘any price increase since the close of the previous month’. This can get a bit tricky if there has been a price increase but the stock is still a “falling knife” (eg its price has been falling for some time) and Tony is still trying to work out a simple rule for when a stock like that can become a true buy.