These Are 2 Lists I Like To Look At
The market
traded quietly sideways today after the strong move up last week.Â
Everything looks pretty good for the bulls right now. And if the market decided
to pullback for a few days on lighter volume, that probably wouldn’t hurt the
technical picture at all. Except for short-term reversal trades, I’d focus my
attention on the long side for the time being.
A few lists I frequently like
to review are the percent gainers and percent losers on the day. When my
trading was more focused towards day trading several years ago, this list would
provide me with 80% of my trades. Shortly after the market opened, I would run
a scan to see who the biggest movers were. I knew most of the time those would
be stocks that would see significant action on the day. I would then look to
play off of that action. Since my trading is now focused more on the swing to
intermediate-term timeframe, I no longer look to trade this list of stocks as
aggressively as I once would have. The list does still serve a purpose, though.
 While I may not be looking to daytrade these stocks, the extreme strength or
weakness can be a precursor to longer-term patterns emerging. After spotting
stocks on these lists, I will check the fundamentals and then perhaps place them
on one of my watchlists to keep an eye on.Â
An example of an interesting
gainer from today is Abatix Corp (ABIX). After trading wildly for a few
days in April, ABIX returned to right where it started and then continued to
sink even lower. With earnings being released last Thursday after the bell,
ABIX has caught fire the last two days.Â
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Will this turn out to be
another hysteria-based rally like 7 months ago, or will the stock actually
consolidate and tighten up its pattern before moving higher? As of now, there
is no way to tell. But moves like this get my attention and it may be worth
keeping an eye on for a while.
By checking out the percent
gainers and losers lists you, too, should be able to uncover some worthwhile
stocks that your normal scanning process may have missed.
Best of luck with your trading,
Rob
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