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Breakout anticipation setups for swing traders

Posted on 9/30/2013

Market is starting with a gap down. The DJ30 and S&P were in downtrend for last one week, so this was not a big surprise. Market has been anticipating govt shutdown for some days.

The more interesting thing is the quality of underlying setups. As you would see in the list below lot more stocks are in orderly pullback or consolidation mode than stock breaking down. Stocks are holding up their gain and selling has been muted. The breadth picture supports bullish case so far. Only high volume selling for multiple session can change that picture.

Stock likely to breakout soon

RRGB
GTLS
ITMN
GBCI
ABG
RPRX
AMED
RPXC
IGTE
ABFS
AMCC
ETFC
ALGN
ANAC
FSS
BCRX
BPI
DPZ
RNDY
KTOS
BHE
CAMP
BDBD
MTOR
AFFX
CHTP
SVA
THRX
IRBT
ASTX
AMD
OSIR
DGIT
FDML
UEPS
AXL
MTDR
SID
ICON
SYRG
TQNT
NXPI
LEA
INFN
CTRN
NTES
GME
CSOD
SWM
HBI

You can see these stocks on Finviz

Breakout Anticipation Setups for Swing Traders

Posted on 9/27/2013
The indexes tell different story from individual stocks. Individual  momentum stocks continue to have very mild pullbacks and continue to behave like they want to go higher.

Swing trade focus list

RRGB
SWM
RPTP
FDML
IGTE
ABG
BCRX
FSS
ANAC
AFFX
AMED
SVA
AMCC
ASTX
ZIOP
PNK
RPXC
MTDR
FNSR

These stocks have established momentum and likely to breakout in few days.

Top 50 stocks for swing traders

As a swing trader one has to look at a 8 to 20% slice of a bigger trend on a momentum stocks. Because momentum stocks are fastest moving stocks in the market, such slice of just 3 to 5 days can under write market condition give you 8 to 40%.

To find a good trading candidate from this list look at stock way extended on 10 day time frame to fade the move or look at stock with momentum pause on 10 day or more time frame.

Top 50 momentum stocks for swing trader

Only stocks with 100000 plus volume considered.

Ranked using one year anchored  momentum

NNVC
ACAD
IDRA
VIPS
CPRX
CSIQ
ZHNE
CLDX
DQ
TSLA
JKS
BCRX
SPWR
GALT
TSL
AEGR
RVLT
EGLE
NFLX
GST
HIMX
SKBI
RSOL
CLVS
MTG
PACB
PLUG
FREE
HSOL
LCI
GNVC
BEAT
EVC
ISIS
INO
RAD
YGE
AFOP
NXST
OWW
ACRX
GRPN
SVU
GTN
LIN
NQ
III
KERX
IQNT
STP

You can access all the Top ranked momentum stocks for free by visiting this link. The link gives you list of stocks on one year , 65 days and 21 days momentum. That way you can focus on red hot momentum stocks in all three time frames of short, medium and long term.  



Develop your own momentum scan and understand momentum concept and it will save you lot of money and make you lot of money. 

The list is updated daily.

Breakout anticipation setups for swing traders

Posted on 9/26/2013

If  are a swing trader primarily focusing on breakout then anticipating breakout can help you enter at lower risk than breakout.

The following stocks are selected from stock with confirmed momentum. They are for 1 to 5 day swing trades with 8 to 40% profit potential.

Stock likely to breakout soon

Symbols from TC2000
AMED
AMCC
SWM
NKTR
PNK
FNSR
IGTE
RPXC
ZIOP
CMLS
FSS
ANAC
FDML
ASTX
MTDR
SVA
AFFX
BCRX
RPTP
CNQR
INCY

ABG

Top 50 stocks for swing traders

Posted on 9/25/2013

The fastest moving stocks in the market are dominated by biotech and solar sector. If you look at every single stock in this Top 50 list, you will see majority do not have good earnings or sales.

That is the way momentum works. Price momentum by itself is a stronger factor determining stocks returns more than any other factor. If a stock has momentum , that is sufficient criteria in itself to consider it for trade.

The other key thing to note is lower priced stock dominate the list. Lower priced stocks make bigger moves. lower capitalization stocks make bigger moves. And lower fundamental quality stocks make bigger moves.


Top 50 momentum stocks for swing trader

Only stocks with 100000 plus volume considered.

Ranked using one year anchored  momentum

ACAD
IDRA
VIPS
CPRX
CSIQ
ZHNE
DQ
TSLA
CLDX
SPWR
BCRX
AEGR
JKS
TSL
EGLE
GST
RVLT
CLVS
NFLX
HIMX
PACB
GALT
RSOL
MTG
PLUG
RAD
LCI
HSOL
SKBI
EVC
GNVC
BEAT
AFOP
ISIS
INO
OWW
YGE
ACRX
CZR
SVU
NQ
KERX
NXST
STP
IQNT
RVP
GRPN
LIN
NPSP
III

You can access all the Top ranked momentum stocks for free by visiting this link. The link gives you list of stocks on one year , 65 days and 21 days momentum. That way you can focus on red hot momentum stocks in all three time frames of short, medium and long term.  



Develop your own momentum scan and understand momentum concept and it will save you lot of money and make you lot of money. 

The list is updated daily.

Breakout anticipation candidates for swing traders

This list published daily is an example of daily process flow. The list is derived from stocks with confirmed one year momentum. The setup definition for this is a stock that meets all pre breakout conditions.

This is part scan and part manual process flow that looks for stocks meeting following conditions and having following characters:

  1. Confirmed momentum on one year time frame of at least 80% plus
  2. Volume above 100000 for last 3 trading days in a row
  3. Stock in pullback/consolidation mode
  4. series of narrow range days in pullback/consolidation
  5. orderly pullback with no break down days during the pullback or consolidation
  6. low volume pullback
  7. linear first leg. 
  8. Stock should go up smoothly and not in volatile manner
  9. 3 to 10 days consolidation/pullback
  10. not up 3 days in a row
The entire process takes 10 minutes or less to do daily after market close.

Stocks likely to breakout in few days:

IGTE
ASTX
CNQR
SVA
RPXC
AMCC
YGE
MPEL
TNGO
NKTR
BCRX
NUS
FSS
ZIOP
ABG
FNSR
SWM
PNK
AMED
CMLS
MTDR
FDML
AFFX
INCY
RPTP
ANAC

List is published daily for those interested in making money....

Top 50 stocks for swing traders

Posted on 9/24/2013
Simple rule days to enter e of swing trading, go where momentum is. Momentum stock makes biggest moves in shortest period of time.

Look for pullbacks or narrow range days to enter momentum stocks. If you want to short, look for excessive momentum, they make good short when they turn.

Top 50 momentum stocks for swing trader

Only stocks with 100000 plus volume considered.

Ranked using one year anchored  momentum

ACAD
DQ
VIPS
IDRA
CPRX
ZHNE
CSIQ
CLDX
TSLA
CLVS
BCRX
SPWR
AEGR
GST
GNVC
RVLT
JKS
HIMX
NFLX
TSL
EGLE
RSOL
GALT
MTG
BEAT
RAD
AFOP
EVC
CZR
ISIS
PLUG
LCI
INO
ACRX
OWW
HSOL
NXST
NQ
GRPN
SVU
LIN
STP
GTN
YGE
KERX
IQNT
QIHU
III
ALNY
NPSP

You can access all the Top ranked momentum stocks for free by visiting this link. The link gives you list of stocks on one year , 65 days and 21 days momentum. That way you can focus on red hot momentum stocks in all three time frames of short, medium and long term.  



Develop your own momentum scan and understand momentum concept and it will save you lot of money and make you lot of money. 

The list is updated daily.

Do this if you want to be successful trader

One of the often asked question on email by readers of this blog is how can I succeed in trading  or improve my performance. The answer is simple, develop a process loop around a simple setup idea. Doing that allows you to develop procedural memory.

The day you realize trading success is about developing procedural memory, you will be on path to success. Trading success is about developing expertise. When you try and develop expertise you train your procedural memory. If your efforts at training procedural memory are successful then you will become efficient in trading.

To do that you need to have a setup and process flow.  Once you do that the task is simple.

Run your process loop...

If you want to trade earnings breakout as a setup , run earnings process loop.

If you want to buy pullback run pullback process loop...

If you want to trade options , run options process loop..

If you want to trade ETF run etf process loop...

If you want to day trade , run day trading process loop...

Unless you have set process loop you will flirt from method to method.

Process loops develop procedural memory...

The benefit of running process loop will be apparent after 4 to six months...Which most people don't want to hear. They want stock picks. They don't want to learn process loops to pick their own stocks. 

If you have a setup and  a well thought out and efficient process loop all you need to do is to run the loop over and over again.

Doing same thing again and again and again develops expertise...

Throughout the day or after close run your process loop.

Depending on your setup idea and time frame of trading process loop will vary...

Running same process loop for extended period of time will make you an expert on a setup...

Stick to few setup and do the same shit everyday till you become expert on that setup...

If the underlying setup idea is thought through and well designed , during the day the task is to run process loop. Thinking through a setup idea is one time effort. This is where you need to focus your one time effort. If you can design good process flow that involves very few steps and very few tools you will succeed in trading. If your process flow involves several hours and  involves very complicated steps then you are unlikely to find much success.

Process loop allows you to build procedural memory. When you do same thing again and again, day in and day out, at some stage it becomes a automated task and the brain spends very small amount of energy to do it. It becomes part of you and instinctively you can figure out , whether this is good setup or not, where to enter and exit and how much to risk.

Each of the method I trade like momentum bursts,  Trend Intensity  Breakout , Working People Portfolio , Lemonade Strategy for 401k  has process loop. All that one does is run the loop during the day, find trade candidates and enter and exit.

The day you realize trading success is about developing procedural memory, you will be on path to success. 

Breakout Anticipation Setups for swing traders



These stocks are at various stages of pullback or consolidation and I am watching them for possible breakouts:

PXD
NUS
NQ
FTK
EGAN
MTDR
ALR
CNQR
RPXC
ZLC
SWM
ARWR
PRAA
NOAH
EEFT
ZQK
IGTE
HLIT
EFII
CNTY
ABG
GNK
DAL
ASTX
LEA
BHE
NVAX
FSS
SVA
LKQ
LYV
RRTS
GBCI
ZIOP
KTOS
ENV
CMLS
AFFX
RPTP
MPEL
ANAC
DGIT
SBGI
BCRX
YGE
NKTR
AMCC
AMED
FDML
LOGM
CAMP
TSL
VNET
TNGO
PNK
MOD
CTCT
INCY
ITMN
PWRD
FNSR

Not all of them are immediately actionable due to a bit of market weakness. But the kind of setup you see shows so far mild selling and no major breakdowns in momentum stocks. 

Breakout Anticipation Setups for Swing Traders

Posted on 9/23/2013

Lot of stocks setting up for breakouts. Selling on Friday was not widespread. Range bound action might be possibility with quarter end approaching.

GBCI
BOFI
DGIT
AMCC
MPEL
AFFX
NKTR
KTOS
EFII
ARWR
ASTX
ANAC
CMLS
CAMP
ZIOP
MILL
CRAY
FSS
KONG
MOD
DWA
FNSR
TNGO
TSL
SWM
LKQ
EGAN
YGE
SVA
RPTP
NQ
GMCR
DAL
SBGI
ZLC
MTDR
FTK
FDML
DLPH
ITMN
PWRD
PRAA
CSOD
INCY
NTES

List is publishes daily for the benefit of  blog readers.

Develop procedural memory for trading a setup




Stop flirting from one setup to another.

In a day or a week you will be exposed to many new trading ideas and setups. With proliferation of blogs, books, forums, Twitter and all kinds of media easily available there is constant temptation to flirt from one trading ideas to another.

If someone highlights a trade then everyone runs to it. If some new book comes in everyone gets excited about it. In the process several things are cursorily tried but no expertise is developed in one type of trading style or setup.

A trading idea or setup is just a idea and unless you think deeply about it and convert it in to process it does not become part of your procedural memory. Your task as a trader is to develop procedural memory.

If you want to trade say breakout you need to develop procedural memory for trading it. That would involve your ability to run the entire process involved in breakout trading like scanning, identifying good setup from scans, putting stop, determining position size, determining target, exiting, and so on. This is all part of procedural memory development challenge.

Procedural memory only develops after a considerable amount of doing same thing again and again using same step by step process. By doing that you develop procedural memory which becomes permanent part of your memory.

If you constantly flirt from ideas to ideas you will never develop procedural memory.

Individual trades do not matter. Learn process flows. If you learn process flow you will be able to replicate a trade or understand what is involved in finding a trade.

Once you understand process flow you will be able to build your own process template and make it efficient.

Process orientation is extremely important for developing procedural memory. Procedural memory is a memory of a procedure. It is stored in your brain as one muscle sequence. In a flash the brain can then recall entire process.

Once you become process oriented the cognitive load will decrease. Follow traders and people here or anywhere else only if they are transparent about their process flow.

Developing procedural memory is the key to becoming successful trader. Procedural memory is built through repeated practice. But before you get to repeated practice you should have right process. Else you become good at wrong process and then you need to erase those procedural memories and rebuilt right procedural memory.

Procedural memories are enduring memories and we do not forget procedural things easily. If you learned to ride a bike as child it becomes permanent part of you. Same way once you develop a setup specific memories they become permanent part of you.

Most of the ideas you will see around you in trading are rehash of some few basic ideas like breakout, pullbacks, pivots, mean reversion, breadth, trend following, momentum, growth investing , value investing, contrarian investing .

Take any of these ideas and convert it in to process and trade it for months till it is part of your procedural memory. If you wake up in the middle of the night you should still be able to do the process blindly without thinking.

The way procedural memory works is by embedding a muscle or thinking sequence in your memory. A complex task involving say 25 steps is stored in procedural memory as one unit (schema) and when performing the task it is recalled in an instant.

Breakout anticipation setups for swing traders

Posted on 9/17/2013
The underlying setups  tell you a lot about the market. Large number of stocks continue to hold on to their gains. You will see very few breakdowns. Many are setting up for possible bullish breakout.

This indicates buyers  confidence in the market. What can change this picture, if we get series of high volume down days.

Following stocks are in various stages of consolidation and are likely to breakout in next couple of days :

OSK
DWRE
RATE
BCRX
RGEN
GPRE
MOD
VNDA
CMLS
HLIT
XIN
ACTV
END
SGMS
NTRI
P
EA
ASTX
FNSR
GBCI
HAR
GT
SEE
ANAC
Z
XPO
ZLC
FNP
LNC
EEFT
LEA
ABG
LGND
GMCR
DLPH
AMED
TSLA

Top 50 stocks for swing traders


There is some rotation happening in momentum stocks. If you look at the stocks listed in top 25 by 21 day momentum, you will see new leaders are emerging.


Top 50 momentum stocks for swing trader

Only stocks with 100000 plus volume considered.

Ranked using one year anchored  momentum

RVLT
ACAD
IDRA
ZHNE
CSIQ
CPRX
AEGR
GST
GALT
SPWR
TSLA
BCRX
CLVS
RSOL
JKS
TSL
NFLX
INO
CZR
MTG
PLUG
BEAT
CLDX
HIMX
OWW
INSM
EVC
ACRX
PTIX
LCI
HSOL
YGE
AFOP
GRPN
GNVC
ENPH
IQNT
UEPS
Z
LIN
STP
KERX
QIHU
ISIS
CHTP
SVU
III
NQ
VNDA
ASTX

You can access all the Top ranked momentum stocks for free by visiting this link. The link gives you list of stocks on one year , 65 days and 21 days momentum. That way you can focus on red hot momentum stocks in all three time frames of short, medium and long term.  



Develop your own momentum scan and understand momentum concept and it will save you lot of money and make you lot of money. 

The list is updated daily.

While only 50 stocks are highlighted here , if you want to swing trade you need to look at larger universe of around 500 stocks. That way you will find 2 to 3 good trade ideas regularly. Swing traders must focus on fast moving stock. This is especially important if you have small account and you want to grow it big