9/30/2009
A swine flu play
High volume breakdowns do not necessarily follow through
Know individual stock behavior
AMSC | 30.23 | 29.50 | 7/30/09 | 29.50 | 33.90 | 7/30/09 | 12.14% | 33.90 | 7/30/09 | 12.14% | 35.12 | 7/30/09 | 16.17% | 35 | 7/30/09 | 15.77% | 14.05 |
The swine flu stocks have been big movers
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9/29/2009
How to find weak stocks
While the market has been rallying, some stocks are not actively participating in this rally. If the market takes a bearish turn such weak stock might attract more sellers.
To find weak stocks in Telechart is easy. There are many ways to do this. One of the ways to do this is by using a Multiple Moving Average bearish scan
MMA Scan
Scan: XAVGC3 < XAVGC30 AND XAVGC5 < XAVGC30 AND XAVGC7 < XAVGC30 AND XAVGC10 < XAVGC30 AND XAVGC12 < XAVGC30 AND XAVGC15 < XAVGC30 AND XAVGC3 < XAVGC35 AND XAVGC5 < XAVGC35 AND XAVGC7 < XAVGC35 AND XAVGC10 < XAVGC35 AND XAVGC12 < XAVGC35 AND XAVGC15 < XAVGC35 AND XAVGC3 < XAVGC40 AND XAVGC5 < XAVGC40 AND XAVGC7 < XAVGC40 AND XAVGC10 < XAVGC40 AND XAVGC12 < XAVGC40 AND XAVGC15 < XAVGC40 AND XAVGC3 < XAVGC45 AND XAVGC5 < XAVGC45 AND XAVGC7 < XAVGC45 AND XAVGC10 < XAVGC45 AND XAVGC12 < XAVGC45 AND XAVGC15 < XAVGC45 AND XAVGC3 < XAVGC50 AND XAVGC5 < XAVGC50 AND XAVGC7 < XAVGC50 AND XAVGC10 < XAVGC50 AND XAVGC12 < XAVGC50 AND XAVGC15 < XAVGC50 AND XAVGC3 < XAVGC60 AND XAVGC5 < XAVGC60 AND XAVGC7 < XAVGC60 AND XAVGC10 < XAVGC60 AND XAVGC12 < XAVGC60 AND XAVGC15 < XAVGC60
This will give you stocks trading below their Multiple Moving Averages. To reduce the number of stocks from the scan you can use Dollar Volume above 25 million.
This will give you mostly large stocks which are not participating in this rally as of now.
The stocks showing up in this scan today are:
AAP
ACM
AGCO
AN
ATK
AUO
AZO
BCO
BG
BKC
BWA
CHL
CVH
DF
DGX
DNB
DNR
DSX
ENER
FCN
FDO
FPL
GLW
GNK
HCBK
INTU
IRM
KFT
KR
LH
MCO
MGA
MHP
MIR
MON
MYGN
NAV
OCR
ORLY
PBCT
PEG
POT
QCOM
RAH
RGC
SAH
SAI
SRCL
STP
SYNA
TTEK
UNH
URS
VZ
WMT
XOM
YUM
When a sector starts moving
Do round number pivots work
How to exit a swing trade
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How to trade top sector stocks
- Top3 stocks ranked by EPS+RS rating from top 20 sector +
- 96 plus composite rated stocks from top 20 sectors+
- 98 plus Relative strength rated stock from top 20 sector+
- Stocks with 40% plus eps growth and 25 % plus sales growth from top 40 sector.
BLC : Belco corporation is one of the media stocks. It had a nice pullback of 6-7 days and had a high volume breakout yesterday. It is from a sector that is rated no 3 currently.
9/28/2009
A high volume breakout after a pullback
Member Feedback
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9/25/2009
How to benefit from the airline sector rally
9/24/2009
How to avoid getting caught in a reversal
Based on Market Monitor readings, the action in speculative stocks, the surge of IPO expected to hit the market, the flood of secondaries, and my prior experience with Market Monitor, we are most likely to see a correction in next 5 to 10 days.
There might be a bit of speculative frenzy in beaten down stocks or low priced stocks for 4-5 days before that. But everything I see points to a high probability of correction at this stage. Such corrections have been so far dips in the main trend where MM readings have bounced back from around 300-500 levels.
Market typically tends to be easiest to trade just before a correction. So I am hearing lot of talk of this market will never correct and it is bull market, and how easy it is to trade and so on.
How to find stock using technical analysis !
9/23/2009
How to find stocks with yearly momentum
If you are short term swing trader, you need to be in stocks with momentum. There are many ways to find such stocks in Telechart.
In Telechart set up following PCF:
9/22/2009
9/21/2009
How to develop your own "secret sauce"
- Read every single thing published on growth investing and internalise it.
- Read every single thing published on value investing and internalize it.
- Read every single thing published on momentum investing and internalise it. Value investing, growth investing and momentum investing are the proven approach to making money.
- Read every single thing published on swing trading. All swing traders ultimately do same basic thing of trying to capture small part of a larger ongoing trend. They use different terminology, indicators or claim to have "secret sauce" but they all do same thing.
- Read every single thing published on market timing models. Again you will find most market models are based on similar ideas or the "secret sauce" in most timing model is mostly common.
- Stop paying attention to macro stuff unless you are trading 100 million plus account. Macro matters only 2% of the time, it is perfectly useless for 98% of the time. But 98% of the trading blogs spend 98% of their time on chewing over macro stuff.
- Don't worry about Goldman Sachs, Ben Bernanke, Barack Obama or Tim Geithner. They don't need your advise. If you are coveting their job, there are tens of thousands waiting in line ahead of you. Every one on the main street thinks that they are smarter than the policy maker.
- Above all have a role clarity. What is your role. Do you want to be a trader. Or you want to be macro economist or a political scientist. Through out the history of mankind in every society there have been structural imbalances. None of them matter to speculators. As a speculator your job is to profit from them. There will always be bubbles and crashes. Your job is to constantly spot where the next bubble is going to be and profit from it.