If you are a subscriber to our free newsletter service, our March issue describes how to develop a checklist when evaluating a stock. This will help take some of the confusion out of decision making.

Currently on our MSO watch, we have applied the checklist since March 06.

March 06 checklist (trend reverse)
March 07 checklist (downtrend)
March 08 checklist (downtrend)

March 09, checklist.

Stock Check List - Trending checklist
Stock: MSO	BUY/SELL Rating: -11.5	Date: March 09, 2005
Indicator	Confirming	Negating
Trending Indicators
Trendlines		downtrending
20, 50, 100 day SMA's		20 and 50 and 100 day SMA breaks
MACD		downtrending
ADX/DMI		+DI below -DI ADX below 30
Volume Indicators
Volume		Volume confirms trend
OBV		Downtrending with price
PVT		Downtrending with price
Patterns
Support/Resistance Breakout	Hitting first potential resistance line, may have a short correction	Resistance Breakout
Candles	tonbo or dragonfly (low reliability)	-
Strength Indicators
RSI		downtrending
__________________________________________________________________________
Points:	0.5 positive	12 negative

At the close on March 09, we can see that the stock has hit it's first potential resistance line. When it did, it formed a tonbo (or dragonfly) candlestick pattern which may indicate a small correction. However, every other indicator still indicates a down trend and there are no indications of a trend reversal.

If you would like to see another indicator added to this checklist, let us know.