10/01/2012 Weekly Stock Scans

[Cobra]

Total 17 stocks for the next week. Lots of them are inherited from the last week's scan.

Mostly are consolidation before possible breakout (Base and Breakout setup): AKAM, DSCO, ELLI, GPS, GET, GEN, GRFS, NRF, REGN, SRPT, SWHC
Some may already had the breakout but it pullback to the breakout point, so maybe a 2nd entry: AOL, ARRY, SHFL, SMBL, WYN
Some are H2 long setup after pullback: WNR
If you have question about why particular stock got selected, please do not hesitate to ask.

• 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.

• For buy pullback setup, I'll write another post as soon as I found a good example.

• All stocks must have 3 month average volume above 500K and the current day volume above 200K.

• No consideration of the broad market trend, the ER time. Those strong stock would sell off hard if the broad market corrects.

• It's auto scan. Not a stock recommendation, trade with your own risks!

[Cobra]

I know lots of people don't even bother to look the link I give, so here again, the very important topic about Base and Breakout setup, which is the major principle the most stocks are chosen. The most importantly, it's not a buy if no breakout from the current consolidation area.

[Michelle]

Cobra, why didn't NTSP and EXH show up in your scan this week? They have both nudged up a little higher since last week, and appear to be above the horizontal line they've been consolidating under. Thanks for all your do, and I love these weekly stock scans you've started.

[Cobra]

Cobra, why didn't NTSP and EXH show up in your scan this week? They have both nudged up a little higher since last week, and appear to be above the horizontal line they've been consolidating under. Thanks for all your do, and I love these weekly stock scans you've started.

They had their breakout therefore are going on their own, no need to mention them again and again, instead we need focus on new stuff, i.e. new opportunities. Show you stocks that already had the breakout and might be too late to chase is meaningless, don't you agree?

[Michelle]

Cobra, why didn't NTSP and EXH show up in your scan this week? They have both nudged up a little higher since last week, and appear to be above the horizontal line they've been consolidating under. Thanks for all your do, and I love these weekly stock scans you've started.

They had their breakout therefore are going on their own, no need to mention them again and again, instead we need focus on new stuff, i.e. new opportunities. Show you stocks that already had the breakout and might be too late to chase is meaningless, don't you agree?

Agreed.

[Cobra]

Cobra, why didn't NTSP and EXH show up in your scan this week? They have both nudged up a little higher since last week, and appear to be above the horizontal line they've been consolidating under. Thanks for all your do, and I love these weekly stock scans you've started.

They had their breakout therefore are going on their own, no need to mention them again and again, instead we need focus on new stuff, i.e. new opportunities. Show you stocks that already had the breakout and might be too late to chase is meaningless, don't you agree?

Agreed.

I used to do 3 additional things after found those stock:

1. What does the company do? I'd think senior care has future but if it's a clothing industry, I'd think twice.
2. Find those stocks' ranks, say in IBD.
3. Find any insider BUY in the last couple of years.

Those 3 steps are not necessary because the pattern now I chose should at least support a short-term upside move, then a breakeven stop loss would be enough as if the trend is strong, I can ride the trend forever, if the trend is not strong, I lose nothing.

[Cobra]

silicon_beaver did a little FA table for me, thanks. The original link is here:

http://www.hutong9.net/forum.php?mod=re ... omuid=1650

[Cobra]

Not a bad week for our stock picks, lots of breakout, only DSCO pattern was gone bad but it didn't have the breakout before going bad, so shouldn't have any loss on trading it. Some of those that haven't had the breakout will be in my next weeks stock picks.

[tkvprasad]

Cobra :

After a clear +ve RSI & MACD divergence with lower price lows , yields are showing strength making higher highs and today's volume on TBT sure suggest higher prices in coming days. I was wondering how do you read this for equity prices go forward with raising yields.


http://scharts.co/QLD8AA

[Cobra]

Cobra :

After a clear +ve RSI & MACD divergence with lower price lows , yields are showing strength making higher highs and today's volume on TBT sure suggest higher prices in coming days. I was wondering how do you read this for equity prices go forward with raising yields.


http://scharts.co/QLD8AA

Whether TBT is going up here is still a question because of volume surge, sometimes volume surge means exhaustion, the recent example is Sep 14.

As for general relation between yield and stock:

In low inflation age, stock and yield going the same direction.
In high inflation age, stock and yield going the opposite direction.
In the past 10 years, stock and yield going the same direction because we're in low inflation age, so yield rise may mean stock would rise.
Now the question is: Are we in a high inflation age now? Because of so much yield manipulation by center banks, I'm not sure about yield and stock relations anymore.