More buying needed

Market had a dead cat kind 3 day bounce after big selling  days. Fora  enduring bottom lot more buying pressure is needed, which we have not seen so far.

We had 519, 405 and 1400 selling days on breadth . That is huge selling . Comparatively the buying days were muted.

If the market is indeed  going to have no  more downside then we need to see dramatic improvement in buying and breadth. Absent that we might get just a range bound action that might fail or later after few weeks attract buyers.

As usually happens during this periods , the most beaten down stocks and sector bounced back first. The stocks with momentum had very selective breakouts and that is where I would like to see setups develop and breakout stick.

A decent setup that worked recently was TANH for 3 day swing trade. The stock held up well near high  during the market correction. In 3 days it made around 43% move. These kind of momentum  bursts need to proliferate for healthy uptrend.

SPWH is another stock that held up well during correction and is now breaking out  on earnings. Volume was big on it and float is relatively small 18.4 million.

Some other stocks showing decent breakouts on Friday are:

DMRC
POST
INGN
ZGNX
ARDX
FENX
NEO

Stocks Setting up for 8% to 20% move

Trade Ideas scans for swing and intraday traders

Trade Ideas scans I use to find both swing and day trade candidates early. For those with the software here are the scans you can replicate. See my recent videos which show how I use this in my daily process flow.

Unless you are actively trading intraday I do not suggest use of Trade Ideas software. It is expensive and they keep raising the prices every six month. If you have small account, the software is not worth the high price.

Stocks with the most upside momentum (These tends to keep going )

http://www.trade-ideas.com/View.php?O=1_19_0&MinCount=60&MinFCD=0.25&WN=Stocks+With+the+Most+Upside+Momentum+%28These+Tend+to+Keep+Going%29&show0=D_Symbol&show1=D_Type&show2=D_Time&show3=D_Desc&show4=Price&col_ver=1

The above scan is good for finding the powerful breakouts that often go on to make big moves during the rest of the day and for next 5 to 10 days

Stocks with the most downside momentum (These tends to keep going )

http://www.trade-ideas.com/View.php?O=2_19_0&MaxFCD=-0.5&MinCount=40&WN=Flipped%3a+Stocks+With+the+Most+Upside+Momentum+%28These+Tend+to+Keep+Going%29&show0=D_Symbol&show1=D_Type&show2=D_Time&show3=D_Desc&show4=D_Quality&show5=Price&col_ver=1

The above scan is good for finding the powerful breakdowns that often go on to make big moves during the rest of the day and for next 5 to 10 days

Up 3% or more with Earnings Today

http://www.trade-ideas.com/View.php?O=10000000000000000000_419_0&QPUD=3&MaxEarningD=2&MaxPrice=700&MinEarningD=-2&MinFCD=0.01&MinPrice=1&MinVol3M=100000&WN=Up+3%25+or+More+with+Earnings+Today&show0=D_Symbol&show1=D_Type&show2=D_Time&show3=D_Desc&show4=D_Quality&show5=Price&show6=TV&show7=FCD&show8=FCP&show9=EarningD&col_ver=1

This is scan to find Episodic Pivots candidates that breakout big on earnings day

Biggest Gainers

http://www.trade-ideas.com/StockInfo/_TopListResult.html?form=1&show0=D_Symbol&show1=Price&show2=FCD&show3=FCP&show4=TV&show5=RD&show6=PV&show7=RL&col_ver=1&MinPrice=10&MinTV=20000&MinVol5D=100000&MaxPrice=5000&SL=X1o5&sort=MaxFCP&X_NYSE=on&X_ARCA=on&X_AMEX=on&XN=on&omh=1&WN=Biggest+Gainers+%28%25%29

Biggest gainers for the day.

Biggest Losers

http://www.trade-ideas.com/StockInfo/_TopListResult.html?form=1&show0=D_Symbol&show1=Price&show2=FCD&show3=FCP&show4=TV&show5=RD&show6=PV&show7=RL&col_ver=1&MinPrice=10&MinTV=20000&MinVol5D=100000&MaxPrice=10000&SL=X1o5&sort=MinFCP&X_NYSE=on&X_ARCA=on&X_AMEX=on&XN=on&omh=1&WN=Biggest+Losers+%28%25%29

Biggest Losers for the day/

Multi-strategy

http://www.trade-ideas.com/MultiStrategy.html?O=1000000000000000000000000000000000000000001000000000000_1D_0&Max5SmaLa20=-0.75&MaxPUp15=-0.75&MaxPrice=200&MaxUp5=-3&MinPrice=2&MinVol5D=150000&WN=Climactic+Down+Reversal&show0=D_Symbol&show1=D_Type&show2=D_Time&show3=D_Desc&show4=Price&show5=RD&show6=FCD&show7=FOD&col_ver=1&Foreground=-8225&Background=-16760832,O=200000000000000000000000000008000000000002000000000000_1D_0&Max5SmaLa20=-1&MaxPUp15=-0.75&MaxPrice=200&MaxUp5=-3&MinPrice=2&MinVol5D=150000&WN=Climactic+Down+Move&show0=D_Symbol&show1=D_Type&show2=D_Time&show3=D_Desc&show4=Price&show5=RD&show6=FCD&show7=FOD&col_ver=1&Foreground=-16744448&Background=-46,O=8000000000000000000000000000000000000000002000000000000_1D_0&MaxPrice=200&Min5SmaLa20=0.75&MinPUp15=0.75&MinPrice=2&MinUp5=3&MinVol5D=150000&WN=Climactic+Up+Reversal&show0=D_Symbol&show1=D_Type&show2=D_Time&show3=D_Desc&show4=Price&show5=RD&show6=FCD&show7=FOD&col_ver=1&Foreground=-3211314&Background=-8388608,O=200000000000000000000000000008000000000001000000000000_1D_0&MaxPrice=200&Min5SmaLa20=1&MinPUp15=0.75&MinPrice=2&MinUp5=3&MinVol5D=150000&WN=Climactic+Up+Move&show0=D_Symbol&show1=D_Type&show2=D_Time&show3=D_Desc&show4=Price&show5=RD&show6=FCD&show7=FOD&col_ver=1&Foreground=-65536&Background=-4063295,O=8000000000000000000000000000000_7DD_0&WN=Post+Market+Highs&show0=D_Symbol&show1=D_Type&show2=D_Time&show3=D_Desc&show4=Price&show5=RD&show6=FCD&show7=FOD&col_ver=1&Foreground=-2752555&Background=-16744448,O=10000000000000000000000000000000_7DD_0&WN=Post+Market+Low&show0=D_Symbol&show1=D_Type&show2=D_Time&show3=D_Desc&show4=Price&show5=RD&show6=FCD&show7=FOD&col_ver=1&Foreground=-1&Background=-65536,O=2000000000000000000000000000000_7DD_0&WN=Pre+Market+Highs&show0=D_Symbol&show1=D_Type&show2=D_Time&show3=D_Desc&show4=Price&show5=RD&show6=FCD&show7=FOD&col_ver=1&Foreground=-1507352&Background=-16744448,O=4000000000000000000000000000000_7DD_0&MaxPrice=200&Min5SmaLa20=0.75&MinPUp15=0.75&MinPrice=2&MinUp5=3&MinVol5D=150000&WN=Pre+Market+Lows&show0=D_Symbol&show1=D_Type&show2=D_Time&show3=D_Desc&show4=Price&show5=RD&show6=FCD&show7=FOD&col_ver=1&Foreground=-16777216&Background=-1,O=4008000154000C100000000000080820_19_0&MaxDNbbo=0.5&MaxDUp5=-0.5&MinVol5=250&WN=Down+50+cents+or+More+in+the+Last+5+Minutes+on+Big+Volume+Spike&show0=D_Symbol&show1=D_Type&show2=D_Time&show3=D_Desc&show4=Price&show5=RD&show6=FCD&show7=FOD&col_ver=1&Foreground=-16777216&Background=-65536

This has multiple strategies  combined in one window is very useful for quickly spotting a breakout or breakdown. It also is useful to indicate intraday buying and selling pressure. 

How to use the $ Breakout scan to make lots of dollars

How to use a simple Telechart scan to find 3 to 20 dollars moves for intraday trades or swing trades.



c-o>=.90 or o-c>=.90 and v>=100000



Where



c closing price  today



o open price today



v volume today



Column used for sorting c-o



Works best on high priced stocks.



Once you understand how to use it , you can find 3 to 20 dollar moves in a day or week.



If you are serious about making money swing trading you can use simple scans to find low risk trades.

No need to panic if you are on the right side of the move

Market had been weak for months with breadth having steady deterioration. Last two months the  primary indicator was bearish and selling pressure on daily breadth reading was increasing . That was clear indication of weakening market.

If you are on right side of the market move , there is no panic just time to bank your short profits and wait for a dead cat bounce or capitulation kind bottom.

Having traded the market now for 15 years with no negative year , risk management and market timing is big part of my game plan. The objective of trading should be to keep your profits and not constantly climb back from holes. Proper market timing techniques and situational awareness skills can help you to be on right side of move and avoid periods like this.

At some stage all these kind of panics subside and market go up, if you have not lost money during periods like these then you are in good position to profit from the markets.

To survive and prosper for decades you need to have some kind of market timing model and on daily basis have Situational Awareness.

Market weakness not a surprise

Breadth was weak for weeks and market had struggled to improve breadth for months. Yesterday was  big down day in breadth . Readings of 500 plus on 4% are rare and indicate broad based selling.

Breadth can help you calibrate your approach to swing trading by giving you a roadmap to manage risk. Negative breadth readings tell you to be extremely selective on long side and tell you likelyhood of follow through will be low.

Extremely bullish or bearish breadth suggest turns. We are not yet at extreme readings so any counter trend rally will not likely stick and will be used by shorts to establish positions.

Breadth continues to be negative

Breadth on daily as well as quarterly time frame continues to show negative trend. A marginal improvement with a minor bounce in last 3-4 days is not sufficient for a sustained rally.

A range bound action in indexes is accompanied by steady deterioration of breadth. Stocks that had lead advance for last 3 to 4 years are slowly showing signs of distribution , a small number of stocks are holding up well.

A breadth thrust with big buy days can quickly change the picture but we have seen very tepid buying on recent attempts.

Implications of markets like this for swing traders is, you have to be cautious and very selective. Follow through on breakouts can be a problem. In markets like this you have to select your entries carefully and settle for smaller profit targets. 

Stocks setting up for 8% to 20% move

Stocks Setting up for 8% to 20% move

My Daily Process Flow

Why process orientation is key to long term success in trading.

My daily process flow to find 3 kinds of candidates.

What scans and tools I use for that.

How these processes identify best opportunities in the market.

What market phenomenon in market the processes are designed to exploit.

Stocks Setting up for 8% to 20% move

Bullish Anticipation Setups



ADPT

ZGNX

NTRI

AMSG

DPLO

MBLY

XXIA

MX

AMZN

YRCW

MMSI

ATRC

TPX

HIVE

AF

PEGA

FBC

NEOG

PNRA

MD

BYD

MOH

HNT

LKQ

TEVA

FB

EQIX

PENN

CLS

GNC

VRSN

XRAY

RTN

PYPL

ENR

AIMT



Bearish Anticipation Setups



HELE

CNC

HTH

SNX

LLL

BLOX

CVA

BZH

IOC

AIRM

ALNY

BKH

MYL

SWI

BEAV

ELGX

GWR

SCSS

SQI

VDSI

KATE

UNFI

WIN

How to use $ breakout scan

How to use a simple $ breakout scan in Telechart to find explosive moves in first 15 minutes for the day. How you can use same scan to find swing trades end of the day. How  traders with large account can benefit from this simple scan. How the $ breakout scan gives you low risk entries with close stops.

How to use Lemonade Strategy for 401 K

Stocks Setting up for 8% to 20% move

Both long and short setups for swing traders. These stocks can make explosive move in 3 to 5 days. It takes only 5 to 10 minutes effort daily to find these once you have a setup, scans , and process to find them.

Stocks setting Up for 8% to 20% move

My Daily Process Flow August 5, 2015

The video details my daily process flow. It shows you the scans I use to find swing trades . The software I use . It also talks about which processes I run before and after market hours and which during the trading day.

Stocks Setting up for 8 to 20% move

Bullish Anticipation setup 



HRTX

ZGNX

ONTY

INSY

ATRA

AMZN

HQY

RTRX

ALDR

PFNX

MMSI

NPTN

GPRO

CHRS

MX

IMPV

MNTA

BRLI

AVG

BYD

MANH

QLIK

BLUE

SAGE

NUAN

ESNT

ALNY

TSO

IPXL

ICPT

ITEK



Bearish Anticipation setup



IMAX

LYV

TV

ACM

XLNX

SIG

LM

JCI

BAP

PLXS

CTB

PAH

IOC

HPT

RWT

TEL

MON

FMC

POT

SCSS

GMCR

GPOR

NUS

HWAY

CSTM

SQM

ZINC

TAHO

TROX

WTW



Anticipation setups for next couple of days. The video also talks about how to trade them and how to create orders for them in night so that you do not miss out on breakout.

Stocks Setting up for 8 to 20% move