stockbee

3/23/2017

Market breadth keeps deteriorating

Market breadth tells you how many stocks are participating in a market move. As you can see the breadth is now negative indicating lesser number of stocks are now leading the market move.

Periods like these are more conducive to counter trend moves working than breakout. Whipsaws in breakout is the risk during such period. 

3/21/2017

Bullish and bearish anticipation setups for today

Market is in a bit of whipsaw territory so one has to be more selective in taking trades. Biotech sector is working well.

Bullish Anticipation setups

EPAM SWKS SWIR OLED ZEN ELLI EXEL DOOR BANC TEDU CSCO BITA RPD DDM UDOW QSR AL

Bearish Anticipation Setups

MOS HSC TDS AFI FNSR AAL

3/13/2017

How to find bullish Anticipation Setups daily

Bullish Anticipation Setups For Today

MS NFLX OLED HAS C IAC BID BNCN BAC MRCY DFS WFC SBCF BABA CTRL LL CHGG KLIC HDB DVMT BG AGN

Finding anticipation setup requires a well thought out process and then one needs to stick to it daily.

To anticipate a breakout look at stocks currently not undergoing momentum burst.

Stock should be in extremely low momentum phase for anticipation .
It can be a shallow pullback or consolidation in established momentum phase.

To anticipate look for stock with extremely low volatility

A stock with low volatility in last 5 to 10 days is ideal candidate as part of a continuation setup.
Look for series of low range bars in last 5 to 10 days
Look for stocks with bollinger band squeeze.

Avoid Anticipation setups on extended stocks

First or second anticipation setup in established trend is best
Extended trends needs to be avoided for anticipation as failure is high on them

Look for early entry on anticipation candidates

Anticipating a breakout helps you get an early entry and can improve your per trade profits.
It also can lower your risk as your stop is closer.
It can help you profit from even smaller moves.
For that entry without waiting for breakout is best.

Anticipation requires more pre planning and effort than buying a breakout.

You need a process flow to do that.
The process should be efficient and done daily after the market close.
The suggested process flow is a template you can develop your own process.

Only 3 to 5 quality ideas should be tracked

"A" grade pre Momentum Burst setup should be your first priority
Once you have list of anticipation setups narrow them down to 1 to 5 for next day action.
Quality is more important than quantity

In order to find Bullish Anticipation setup use DT and TI 65 lists in Telechart

Double Trouble Scan

US common stocks
c/minl252>=1.8 and minv3.1>=100000
Price % change Today between 1 to -1%

TI65

US Common stocks
avgc7/avgc65>1.05 and minv3.1>100000
Price % change Today between 1 to -1%

MDT Above 1.19

US Common stocks
c/avgc126>1.19 and minv3.1>100000
Price % change Today between 1 to -1%

After running these three scan merge them together as some stocks will be common.

Go through the list to find setups that are setting up for possible b/o

What to look for in good anticipation setup

series of narrow range days in pullback/consolidation
orderly pullback with no 4% b/d during the pullback or consolidation
low volume pullback
low volatility during pullback
linear first leg if looking as continuation setup
Stock should go up smoothly and not in volatile manner
3 to 10 days consolidation/pullback
not up 3 days in a row
This entire process once setup tales just 20 minutes daily. 
You can find 5 to 10 good set ups using this process daily. In good market conditions these setups can make 8 to 20% in just few days. 
So if you are serious about making money swing trading setup these scans and practice finding good setups.
You can find your own stock picks daily once you master this method and perfect it. It will help you develop your own trading skill  and you will not have to depend on anyone.

3/09/2017

Breadth continues to worsen


Breadth is showing clear signs of selling pressure. Selling is not high intensity selling , but has been persistent.

Due to mean reversion tendencies market may be due for a bounce here. However sustained uptrend will require significant breadth improvement.


3/07/2017

Breadth is deteriorating

Breadth Deterioration in last 10 days. 6 negative breadth days. Makes me cautious but not excessively bearish. Last year such breadth deterioration persisted for months.

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Periods like these can lead to series of breakout failures and reversals during the day.
What it means is lower per trade risk. Lower overall market  exposure. Tighter stop.