4 stocks I’m looking to scalp
The stocks that I had the most
success scalping in Wednesday’s market were General Motors
(
GM |
Quote |
Chart |
News |
PowerRating) and Visteon
(
VC |
Quote |
Chart |
News |
PowerRating).
VC had more negative news concerning its earnings on Wednesday morning. The
volatile automobile industry and the parts suppliers have had a tough time in
the last several months. As a result, VC has been showing up on my scanner as a
new day-low continually for the last few days.
On Tuesday (Nov 8), VC opened near $9.00. The stock sold off steadily throughout
the day. It established a daily low of $7.41. On Wednesday (Nov 9) I was alerted
to VC when it came across my scanner as a new day-low. After pulling up my daily
chart on VC I realized that the 200-day moving average was at $7.30. It was
apparent that the sellers were still in the market and I looked for the proper
entry points to get short VC.I was able to actively scalp VC a number of times
until it bottomed out at $6.50.
There are two stocks I will be watching Thursday as they release their quarterly
earnings. These two are Target
(
TGT |
Quote |
Chart |
News |
PowerRating) and Kohl’s
(
KSS |
Quote |
Chart |
News |
PowerRating). TGT has been in a
tight trading range the last few days. As we all know, the tighter the range,
the better the move when the move finally materializes. If TGT has negative
earnings, I would look for it to sell off and break down below its 10-day moving
average of $54.00. If TGT comes out with positive news, I would look for it to
trade up and break an extremely important resistance level at $58. The $58
resistance level was set back in late July and was tested a few days ago. KSS
was in a similar trading pattern today as well. If it becomes an active stock, I
see the opportunity to scalp it around $49.00. This is the 50-day moving average
to the upside. The downside movement would be to $47.50, near the 10- and 30-day
moving averages.
Also keep an eye on International Game Technology
(
IGT |
Quote |
Chart |
News |
PowerRating). They are releasing
earnings on Thursday (Nov 10) as well. IGT closed on its low of the day at
$26.02. If earnings are negative, I would look for follow through to the
downside. Pep Boys
(
PBY |
Quote |
Chart |
News |
PowerRating) will also report earnings on Thursday (Nov 10) It
could possibly be a volatile trader based on the negative news that has hit the
industry lately.
Mike Kestler
P.S. In early December, I will
train 50 traders on how to daytrade and scalp the way I do. If you
are interested in attending, click here or
call 888 484-8220Â for more information.
Please e-mail with any questions
you might have at
mkestler@evotrading.com
Michael Kestler is a
full-time professional trader and managing partner for Evolution Capital LLC., a
proprietary trading firm. Mr. Kestler specializes in intraday trading of NYSE
listed stocks. Before founding Evolution Capital LLC., Michael began his career
on the floor of the CBOE. Mr. Kestler was previously a Mid-Cap and Nasdaq Market
Maker.