Watch Waste
If you favor the long side–finding
strength in a weak market is the part of the art of making money in the
environment we’re in right now. That can be difficult if you pay an inordinate
amount of attention to the news media. But your job as a trader is not to
follow what the news media is saying, but rather what the market is doing.Â
To do this, you need to use tools that objectively identify where the action
is. My favorites: TradingMarkets
Stock Scanner and the TradingMarkets
Stock Indicators page.
When I use these tools on a daily basis, new symbols within unfamiliar
industry groups pop up fairly frequently. This is what happens as leadership
rotates. As I’ve said before, you cannot fall in love with any one stock or
industry group. You must keep going with whatever the winner is at any given
time.
Waste Connection
(
WCNX |
Quote |
Chart |
News |
PowerRating) is a stock that has an three-month
RS ranking of 91 based on our TradingMarkets
Stock Scanner. The setup is worth watching. It’s pulling back to its 20-day
moving average and 61.8% retracement off the Nov. low and Dec. high. In Dec., it
broke out of a rising channel on heavy volume, suggesting a potential
acceleration in WCNX’s climb. Since the bounce has already occurred, I’m looking
for a small pullback and then a resumption of the trend.
See you tomorrow,