Cobra's Market View

There're 25 long watches this week. 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.

Because of Non-Stop Model is officially on the bull side, so this week's scan is long watches only.
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:


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!

A sample trading strategy for my weekly stock picks:

See chart below on how to set Buy Stop.

Normally, you can set GTC Buy Stop then attach an automatic Stop Loss (if your borker doesn't support automatic stop loss, you can always set stop loss after the buy stop triggered), then leave it there until it triggers. I usually pick 10+ stocks every week (yes, it's intentional), so in the weekend, you just set all those 10+ Buy Stop with attached Stop Loss, then wait for breakout and collect money the next week. It's the same as fishing, consider all those Buy Stops are your bait. You don't need care which pattern looks better, which breakout would be real as in the most cases, most breakouts are real. So 10+ stocks, say, 7 breakout, 3 eliminations (therefore buy stop not triggered, you don't lose anything in elimination cases), 5 are real breakout. You still make money.

Trading is art, so it's just an idea. You need adjust to fit your own style of course. I have thousands of readers, about just a few hundreds are interested in the weekly stock picks as I guess few knows the trick of a simply buy stop then wait, not much work. However, if eventually this method gets too much attention, I'd be forced to set a limit access, so enjoy while it lasts.

does this strategy work for trading option calls as well?

dodger1k wrote:does this strategy work for trading option calls as well?

Cobra:

Should we name new thread as "Investor Lounge"

dodger1k wrote:does this strategy work for trading option calls as well?

Yes, it should. Your broker should support stock breakout then buy option kind of trade and the option must have good volume otherwise your market buy might end up very high.

tkvprasad wrote:

dodger1k wrote:does this strategy work for trading option calls as well?

Cobra:

Should we name new thread as "Investor Lounge"

It's done. Thanks.

An Excel Sheet to help you calculate the position size and target for my weekly stock picks.
viewtopic.php?f=10&t=925&p=130945#p130945

Not a good week for the broad market but still we have more real breakouts which is 8 than false breakouts which is 6. Also among those 6 false breakouts (red circle), most didn't lose much and pattern still there so cannot say they're failed yet. There're 7 eliminations. 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.