February 7 Workshop
When you get several
stocks in the same group trending, it is often a strong indication that there
are good candidates to continue that trend.
1-31-02
11:51:46
Beazer Homes (BZH)
is pulling back from its high of three days ago. BZH is down 1.10 to 80.10
and is carrying a
3-month relative strength rank of 97 from TradingMarkets.com.
BZH has been exhibiting recent strength along with Pulte (PHM)
and Kaufman and Broad (KBH).
When the stock moves back in the direction of the recent trend, the
opportunity for profit is there when the stock moves more than 7 points higher
out of the pattern over the next two days.
Combining industry group strength in addition to pattern will give you some
excellent chances for success.
Even
traders who can’t watch their screens every day
can now tap into the analysis provided in
TradersWire. In our new feature, "Tomorrow’s Short-term Setups,"
we profile the swing trading setups that did not trigger but are still
interesting for the following day. This is a way to access a number of potential
setups very quickly when you come home and log on to your computer. Here are
three you could have seen Friday night after the close.
18:19:27
Monday’s
Short-term Setups
Centurytel (CTL)
is pulling back from its low. CTL is holding a
3-month relative strength rating of 19 from TradingMarkets.com.
CSG Systems (CSGS)
is wedging upward after a thrust to the downside. CSGS is holding a
3-month relative strength rank of 11 from TradingMarkets.com.
Americredit (ACF)
is pulling back following a probe to the downside. ACF is carrying a
3-month relative strength rating of 12 from TradingMarkets.com.
All are now triggering today.
This can help you get a
jump on tomorrow’s swing trades. If you are not subscribing to
TradersWire because you are not in
front of your screen all day, this may be what you are looking for.
Surge and plunge
alerts are funny things, but the biggest reason we report on them is because
there is action taking place in the stock. How it reacts in conjunction with the
market trend will determine how, or if, you can take advantage of the move. (OVER)
is a good example from Wednesday.
09:37:06
Plunge Alert
Overture Systems (OVER)
has dropped 3 points since the open. OVER is trading at 27.36, down 3.06.
The alert goes out just a few minutes into the trading day, but it is falling
so fast that it is not really actionable at that point. The best plan of attack
is to track it and see it the stock and the market overall continue to weaken,
then look for an entry from an intraday pattern.
The first pullback produces a small winner, while the big fish
is hooked when OVER breaks down out of a two-hour long Slim Jim that does a head
fake out of the top of the pattern. The stock falls 5 points in a matter of
minutes.
Patience will pay off. Keep stocks on the radar when we give an
alert on them.