KLAC can be a wild stock on some days. Other good daytrading stocks lately have been ALTR, TLAB, and YHOO.
I normally just look for the stocks that are the most up (on an up day) and I look to short the stocks that are the most down (on a down day).
If the market is strong and up for the day, I will not short anything. I will only play the long side. The opposite also is the rule. If the market is down I will only play the short side.
There is another program I run in a frame that tracks which stocks are at their daily high. It lists the stocks trading at their highs, then the stocks 1/16 from the their highs, etc. You can also scroll down and do the same thing for the stocks at their lows. It is a great frame to use in order to find stocks in the process of trending. Once you see the stocks that are moving, you just need to check that there is enough volume and the spread is narrow.
The other rule I use is not to chase anything too much. I like to find them when they are initially pushing thru their daily high. If a stock has already made a good run, then I tend to wait for the next opportunity. Far too many times I have chased a stock that has already run about 1 point and that tends to be the high of the day.
This rule is not always true, for example, DELL can run 5 points with no problem, but most stocks do not. You just need to know what your stocks are capable of.
Jay |
