Saturday, September 18, 2010

Watchlist for next week - Part 2

As I stated in the first part of the series, " I have decided to stick with stocks from the technology sector. And not surprisingly, there are a lot of bullish setups out there, as one would expect from a market that has now consolidated for four days. The important levels are marked on the charts itself and I recommend an entry only after these levels are crossed as the markets are at crucial levels and one has to be aware of the possibility of this being another failed shot to break through the top of the range. Well, here is the first part of probably three part series of stocks that I like for next week. Take your pick!" Also, how about taking a moment off your time and taking part in the poll to the right. The bulls seem to be having their way until now. Have your say!

KEM - Gotta like the bullish volume pattern. Nice bounce off MA(50) on Friday. Watch out for a break from the trading range of last four sessions. A stop below MA(50) should do the trick.

In case you missed it, here is the link to part 1 of the watchlist. I will be back with the last part of the series, Chart of the Day and my thoughts on what to expect next week.

Take care and good luck!


Doctor Stock said...

Interesting list... mind me asking a question? I noticed most of these are already in upward mobility. Do you generate a list of those that are turning... not already turned upward?

positiontrader said...

Yeah, I like to go with stocks with momentum behind them. Stocks that are close to making new highs or are flagging or consolidating after a big move up. When I think the overall markets are going to turn, I scan for heavily shorted stocks but generally, I hate calling bottoms. The problem with stocks that are "turning" is that generally they have a lot of overhead resistance in form of moving averages, breakdown gaps etc. They also might be down a lot for some fundamental reason that I do not know about. Stocks that are close to making new highs with volume have very little or in some cases, no overhead resistance and generally, though not always, they are supported by good fundamentals too. Because of all the above, I just like to go with the stocks that are already moving. Just something that suits my trading style. Hope this somewhat helped!