The stock market did absolutely nothing today accept consolidate recent gains of the past four weeks. With no economic reports on hand today, that might have been a reason for the lackluster trade. Another reason could just be an extended Veterans Day vacation. Whatever the reason is, it is still nice to see the market pullback on quieter volume (NYSE volume was higher but mainly due to GP).
A nice pullback on low volume or some sideways action would be welcome right here to help set up a nice launching pad for a strong rally. A pullback would also help dampen the bullishness and increase the bearishness which would help support further price advances. The bears have been out heavy the past four weeks yet they have been unable to do anything of significance to the downside. In time they will give up and become bullish, but usually that happens later on in a rally. So until that happens there could be some great stock gains to be made out there.
Even though the market was quiet today it probably will not stay that way. This week is loaded with economic data that should light a fire under this market. With the current seasonality being favorable along with the amount of beautiful charts of stocks with great fundamentals, it appears we could have a nice year-end rally. But no matter what happens just make sure you stick to your buy and sell rules and IGNORE ALL OPINIONS OF CBS, ABC, NBC, PBS, CNN, etc. Those idiots who run those programs and produce those SCARY shows about the economy have never made a dime in the stock market and I gaurantee you they will NEVER make you a dime either. Ignore their negative biased news and concentrate on the facts -- charts, earnings, sales, return on equity, sponsorship, profit margin, etc. That is what makes you money; not the perma-bears calling for a collapse of US economy. How many years have they been on that? I have been trading since 1996 and I remember hearing about it then. Some things never change. THANK GOD.
New Swing Longs: BOT SVA PTIX
Longs Outperforming Market: NDAQ-251% BMD-220% BTUI-108% PETS-95% RTSX-88% SYNC-81% WIRE-61% SUPX-53% MESA-41% AAI-40% SRLS-33% CNET-28% OXPS-28% LMIA-27% EAGL-26% CTHR HOM ASEI CKCM TSCM RNOW CPTS ELOS WBSN DJO LIFE CKFR MNST CMED VAS RSTI CIB ISIL RADN TEVA LCAV BCO ABAX BWNG BVF SWIR OUTL NUHC BNT
New Swing Shorts: NONE
Shorts Outperforming Market: NONE
Stocks On Radar Screen: GROW ONCY AVII TIII MED STEL
4 comments:
Hi Josh - great blog you have going here, I just have a quick question in regards to "Stocks on the radar screen".
Presumably these are stocks you have been watching for a given period, perhaps as recently as a week or so prior to them being posted? In the case of ONCY, would you place a limit order slightly above the pivot (previous high) 515 or will you only enter on an EOD basis?
Thanks!
No. These stocks arent watched at all. They have appeared on my scans and these I place on watchlist on my IB TWS platform.
There is no pivot on ONCY as the stock has only recently moved above the 50dma. It needs a lot more time to base (move sideways) before it has a symetrical pattern to the overall cup pattern.
The currnet pivot would be the November high. But that would only be a pivot if the stock moves sideways or drifts down for at least three weeks to longer.
I never buy stocks during the day. Only during the first hour of trading unless limits placed in the morning get hit during the day. But those limits are on stocks that I have also put market orders in for. All my studies are done at EOD.
I don't recommend newbies watching stocks intraday, if you are a swing trader. I can do it because I dont panic buy or sell. I am discipined and dont make emotional trades intraday. But most people can not do that. Until you get to that point, I dont recommend trading intraday, unless you are a great daytrader already.
CTRN had a nice cup with a handle base, do u think it is a buy if it drops down to its 50 DMA on low volume?
CTRN is not a great cup with handle, but it is one none-the-less. Therefore, yes, it is a buy at the 50 dma as long as the market stays healthy. This is a very smart entry point with a cut loss with a close below the 50dma.
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