Contraction Leads To Expansion

Contraction Leads To Expansion

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 fzorrilla@zorcapital.com or 646-480-7463.


       


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
By |2018-02-02T12:08:22+00:00April 8, 2016 8:06 am|

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