Find stocks about to explode
In today’s Chart of the Day, we’re going to look at the
TradingMarkets
Explosion list.
An inherent feature of all
markets is that periods of lower-than-normal volatility are usually followed by
periods of higher volatility. These stocks are trading at one-third or less of
their normal volatility and therefore have a high likelihood of exploding within
the next few trading days. To improve your ability to apply this knowledge,
click here.
Here’s an example from the list for 07/27/06 (based on Thursday’s close).
Inco
(
N |
Quote |
Chart |
News |
PowerRating)
As you can see, Inco exploded higher by more than 3% today.
In the days to come we’ll show you more of these examples on both the long and
short side. I’ve enjoyed showing you this Chart of the Day, please feel free to
email me at editor@tradingmarkets.com
if you have any questions or comments.
Ashton Dorkins
Editor-in-Chief
Reminder: We are in no way recommending the purchase or short sale of these
stocks. This article is intended for education purposes only. Trading should be based on your own understanding of market conditions,
price patterns and risk; our information is designed to contribute to your
understanding. Controlling risk through the use of protective stops is critical.