TEVA

In the midst of a mindless rally, a new Short has garnered my attention; TEVA.  Why has a hot stock in a hot sector (Generic Pharmaceuticals) flipped to a Sell in its Daily Trend Model?  We don't know, nor do we care.  Respect.

Below are two TEVA charts.  The first one uses the standard Trend Model 2.0  and the second one uses my new beta version Trend Model 4.0  with wider settings that result in fewer trades at the expense of efficiency in both entry and exits.   This will be a good test and example of how these two models differ in their approach to trend following.

TEVA Daily Trend Model 2.0

TEVA Daily Trend Model 4.0

(Bar colors & price entries are from Model 2.0)