FocalEquity Stock and ETF Model Update

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The stock model is updated to reflect today’s market move. You can download the entire model Excel output file at 

For 08/25/2011 trading day,  we are going to focus a long position in EMC (EMC Corp) and a short position in RIMM (Research in Motion) Charts are provided by contributor Roller Coaster.

According to our ranking model, EMC’s valuation is cheap at the moment based on our book, PE and PE to Growth related composite value factors. In addition, our contrarian indicator indicates more upside potential for the stock. EMC has a Quintile Ranking of 1 ( 1 – best, 5 – worst).  The stock is beginning to move up, and the MACD histogram is ticking upwards.  EMC may now fill the gap.

EMC long 
RIMM (Research in Motion) ranks poorly within the FocalEquity Stock Ranking model (a Quintile Ranking of 4 ( 1 – best, 5 – worst)) because of the issues related to its earning composite factors. RIMM’s earnings have been terrible. In addition the stock rallied sharply from its low in early August and its contrarian indicator within the model is no longer attractive. It’s now at the 50 EMA and at the gap, which can serve as resistance.  RIMM can continue to make lower lows from here.

RIMM short 

ETF Model Update:

You can download the entire ETF model Excel output file at 

Today we like to highlight ZSL (Proshares Ultrashort Silver). With the huge rally in precious metals in recent trading days, silver is likely going to face another severe round of correction along with gold.  ZSL has made a lower low, and the MACD is showing some divergence in the histogram.  The histogram appears like it will make a zero line crossover, and the MACD lines appear like they are about to make a crossover.

ZSL etf 
Using the latest data inputs, the ETF model is giving a mixed signal regarding bull and bear ETFs. The overall tilt is to the bullish side. You should carefully look at each trading signal and ask us questions on our blog if you are uncertain.