stockbee

3/01/2017

Bullish Anticipation Setup for today



Bullish Anticipation Setups

ANTM JPM TMK BBT BK HCKT C GS KEY PTCT NVGS CMA NVLN VLY DNKN TGP PNNT KOPN QCP FTV PBCT L ZION HBAN CBG STL CALA SYMC GNBC QSII FITB WBS KFY ALK CVBF DCOM MSFT WFC DFS PNC EV AKAO DVMT UTEK ROK EWBC MTB FRED LW MIDD ABC

2/27/2017

One of the best way to make money in the stock market is to buy range expansion

Stocks go through periods of range contraction or trend periods and periods of range contraction or consolidation. One of the best way to make money in the stock market is to buy range expansion at the beginning of a swing after a stock has had series of range contraction days.



Buy range expansion after a period of 5 to 10 day consolidation and an orderly consolidation. Orderly consolidations are low volatility periods where buyer and seller at equilibrium. 

Buy range expansion preceded by low volatility period. A range expansion from that phase indicates fresh buying pressure. 

Buy range expansion after a negative day. A range expansion preceded by a negative day indicates start of a fresh swing.

Buy range expansion after a narrow range day. Narrower the range better it is. Narrow ranges often lead to explosive moves on range expansion.

Buy range expansion after a series of narrow range days. That is even better.


Buy range expansion if stock is not up 3 days in a row. 

As a swing trader, if you regularly buy stocks up 3 days in a row , you are likely to sooner or later blow up your account. The Professional trader buy on first day of the swing as soon as range expansion is signaled. Second day follow through id driven by residual buyers, newsletter followers or slow reactors. Third day is when many novice notice the move and get excited. the professionals sell in to that euphoria. They are happy with their 8 to 20% profit in 3 days and the third day buyer becomes the bag holder.

Buy range expansion early in a trend. 

Say a stock is rang bound for 3 to 6 month and then it breaks out then that is a young trend. Buying proper momentum burst setups in these your trend first or second or third time works . But same stock when it is up say 6 month and trading near its high and all time high at some stage buying a extended move on that kind of stock will likely hasten your death as a trader. Even if you have to trade those kind of extended moves , ensure extremely good risk control and position sizing. As trends get extended they can become vulnerable to swing failures.

The most important thing to remember as swing trader is that always buy range expansion at beginning of swing move. That one rule can make you millions and save you lot of heartburn.

In  order to find such stock setups daily scan for range contraction periods. From that list narrow your options and enter on range expansion day. 

Here are some of the stocks with range contraction setups:

BC JAZZ NSIT LW FNSR EFX IDXX SAGE DNKN MYL BEN CRCM DORM IMOS SANM AGN ELLI RF MDSO BLDR ACAD FBK

2/24/2017

Breadth deterioration continues

Less and less number of stocks are making bigger moves as a result there is significant deterioration in breadth


You can see similar thing on overall market breadth in Stockbee Market Monitor. The #of stocks up 25% in a quarter is declining while market was making new high.

Pulback tends to result from such divergences.

2/21/2017

Bullish and bearish anticipation setups for Feb 21, 2017

Bullish Anticipation Setup

CTRL CRCM CNAT MMYT IDXX AGN MNTA ATVI CALD NSIT BCO CSC CLLS WNC QUOT CLF INFN

Bearish Anticipation Setups

PBI ACET EVC OPB BBG CATM CSGS CORE

2/16/2017

How to build your own trading method Part1



If you want to make money trading then you have to develop an edge. You have to find things that work in market and build your trading methods around

That kind of process requires good understanding of how markets operate and what works and why. If you base your methods on structural tendency of the market then you are likely to be profitable.

What makes some of this process difficult is that you have to figure out everything for yourself. There are many resources you can tap but ultimately the responsibility of making it work is your own.  

You have to figure out how markets work on different time frames and why. You have to figure out how different types of stocks behave over their lifetime. You have to figure out how IPO behave. You have to figure out how value and growth stocks behave. You have to figure out how momentum stocks behave. You have to figure out what factors drive stock returns.

You need to figure out how overall market direction affects the growth, value, and momentum stocks and how to adjust your style.

You have to figure out how to manage risk. You need to figure out how to determine safe periods for your strategy and how to avoid unsafe periods.You have to figure out how to control per trade risk as well as overall risk so that your draw downs remain very low and you can quickly recover from any setbacks.


You have to design your own method, devise your own rules and have enough confidence to trust your own method.

Unless you start your career in a big bracket investment bank or in a hedge fund, this is the reality of trading success. All individual traders who are profitable over the years have done this and each one has taken different route to get there and has spent different time frame to arrive at profitability.

Moses is not going to give you 10 commandments on how to trade, perfectly wrapped in a gift box. 

The ability to learn trading on your own is going to determine your success. Some people persist at it for years and then they find success. Some try it for few days or months and that is the end of it.

Even if you find a ready made profitable strategy you may not find success with it till you customize it for your own needs and beliefs and personality.

So much of trading is about individualization of methods to your own unique way of thinking and style. There are no standard methods. There are approaches. If you are smart, you would be able to build a method after studying some of the well known public domain approaches.

One of the big problem for many people is that they are waiting for Moses to give them detailed rules, guidelines and every single nuances. I have bad news for them. It is unlikely to happen.

God is too busy handling other big problems in the world than to offer you get rich scheme.

In series of posts we will look at how you can find approaches that work and build your own method around it and make profit.