Hi Bruce,
Just popping in on the old gang to see if there's any action here. Haven't been on SI for a while, but see there's an uptick in the number of posts here of late. Today I'm trading light as I've got a massive head cold and am loaded with antihistamines.
To look for your early BO, you might try a Stoch 89,3,13 indicator (just use/display the %K and %K slow indicators). Nice tool to find stocks that have gone thru a lengthy basing and are starting to break out. On a filtering scan, look for the %K > %K slow, the %K to cross above 10 for the first time in several weeks and at a new high for that period, and the %K slow to have stayed < 10 (< 6 better) for several months. Use a confirming indicator - there are several good ones, I like an 8 period ADX with the +DI crossing or above the -DI. MAs and MACDs are OK too, but slower. Then use the eyeball test, you'll see a nice pattern to this stoch with a long sub 10 basing and a sharp attack up just before or as the stock breaks out. Check it out on charts of some fav olden gizzards like DIGL, VTSS, HLIT, RBAK, AIRN. Lots of these semis and telcos started runs the week of 24 OCT.
I've been sticking mostly with a small stable of ponies (IMHO, the best strategy in choppy markets) that don't particularly fit the gizzard test and not trading based on scans - more on patterns. Many of my ponies have larger floats and shares outstanding, trade in the > 500K to 20M shares per day and are generally good volatile movers (I do scan for hi beta and volatile stocks). Mostly avoiding the sub 5 group, except for a quick in and out occasionally. I'm trading some swings, some daytrades, and generally not in more than 4 to 6 at a time. Some of my recent ponies include GNSS, SNDK, CTXS, QLGC, NXTL, CCMP NVLS and KLAC. FLEX has been my atm machine of late. AFCO is about the lowest volume stock I'm trading and it still manages > 200K average for 20 days. I'm currently short several of these from the pop at the open Mon, having felt the run last week was due to correct this week. Covered a few this am, but not going long on swings - just looking for bounces.
Good luck looking for the elusive holy grail for breakouts.
Peace and Justice --- Patrick |
