Today my scans produced an enormous amount of set-ups, a majority from the energy sector. The gap up this morning is going to make the energy plays tricky; I’m not a fan of chasing gaps.
Contraction leads to expansion, my ideal swing set-up is a stock that had an up move, traded sideways for 10-20 days; it starts to get tighter, and then expands. Expansion after contraction from a comes from stocks near 52-week highs, 52-week lows, above and under the 200-day and 50-day moving average. BTE and FEYE are good examples. The goal is to get involve in the first day of a new 3-5 day move.
I have 36 names on my list today, too many, they’re a million ways to narrow down a list, and it all depends on what you believe in. You can narrow if it’s trading above or below a moving average, you can narrow it by price, gut feel, sector, volume, fundamentals, etc. I tend to allow the market to narrow down the list for me. I only have an interest in getting involved in the stock goes through yesterday’s high plus a few cents.
Names; LXU, BTE, CC, SXC, CLF, FSTR, WPX, ECA, TOO, CNX, CENX, MUR, GTLS, TRGP, WLB, RRTS, CFX, NOG, FET, INT, FEYE, SPLK, CHK, DBD, GME, AMZN, QCOM, AR, UNT, IAC, TWTR, OSK, LNG, MBLY, WTW, GMLP.
Click for the CHARTS
My opinion and outlook are subject to change as new information comes in.
Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at email@example.com or 646-480-7463.
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