08/19/2013 Weekly Stock Picks

[Cobra]

As promised last week, starting from this week, I'll post my 1st round of picks from over 400 strong stocks found from all US and Canada stocks.

Here's the 1st round of picks. They're not final. The finals will be in the next post.

[Cobra]

First of all, be careful of further correction of the broad market. If you're not sure whether the intermediate-term trend is up or not anymore, don't trade those stocks picks or at least make sure to book profit on the breakout day then if possible set breakeven stop loss.


There're 9 long watches. Some of them are inherited from the last week's scan. Those last week's picks that had breakout or the chart pattern became bad are not listed here anymore because they're no longer Base and Breakout setup, in which the weekly scan is focused. It doesn't mean they're not worth trading anymore. Also the scan includes Canadian stocks, they're rare though.

Non-Stop Model is now on the bull side, so this week's scan includes only long watches.

The major criteria for picking either long watches or short watches is base and breakout setup. So again, let's be crystal clear, before the breakout or breakdown, it's not buy or sell. For more detailed discussion about how to trade, I've provided a sample strategy HERE. Also an Excel Sheet is provided to help you calculating the position size and target, you can download the sheet HERE.

LONG WATCHES:

SHORT WATCHES:

N/A




HERE explained why most stocks chosen are at or near 52-week high. Generally you should buy 52-week high not 52-week low. HERE is my simple explanation if you don't want to read the lengthy link I provided.
HERE explained how to determine your position size. Generally you cannot simply all in on one stock.
HERE explained Base and Breakout Setup and how to trade, which is the major criteria most stocks were chosen.
All long watches must have 3 month average volume above 500K and the current day volume above 200K and price above $2.
All short watches must have 3 month average volume above 1M and the current day volume above 500K and price above $5.
No consideration of the broad market trend, the ER time. Those long watches may sell off hard if the broad market corrects, those short watches may rebound sharply if the broad market rallies. So when trading those stocks, be sure always bear the trend of the broad market in mind. Stocks a tiny wave while the trend is tide, there's no way a tiny wave beats the gigantic tide.
It's auto scan. Not a stock recommendation, trade with your own risks!

[Cobra]

Not a bad week, the 2 false breakout FMER and BPOP actually lose nothing, you can either flat out, or since the pattern still is base and breakout (could be a kiss breakout point goodbye), you can hold them for the next week.


Long Watches:

4 real breakout, 2 false breakout.

1 elimination.


Short Wathes:

N/A


The rest, the chart patterns not bad yet, will compete with our new scans in order to be listed in the next week's list.


Green circle means a successful breakout/breakdown, so the pick won't be in the next week's list anymore.
Red circle means a false breakout/breakdown, the pattern in this case may not go bad yet, so still could be in the next week's list.
X means the pattern is gone bad, so the pick won't be in the next week's list anymore.