My fundamental screens are limited but I like it that way so I can concentrate on the stocks that are moving higher on above average volume. Only three stocks of interest made my final nightly screen tonight as was the case last night. Tonight’s stocks are all within 15% on new highs and moved higher on volume at least 50% larger than the 50-day average.
- VIVO – 34.09, the stock was up 5.90% on volume 126% larger than the 50-day average. The stock is building an up-trending wedge that looks ready to challenge new multi-year highs. A move above $36 on heavy volume will be positive.
- CEDC – 56.25, the 2007 superstar is currently building support and resistance levels between $45 and $61 as it looks to make new highs. A move above $61 on above average volume will qualify the stock as a possible $60-$100 candidate. This type of move will also reestablish its position as a market leader in 2008.
- FSCX – 46.91, the stock was up 6.86% today on volume 62% larger than the 50-d average as it looks to challenge all-time highs. I have been following FCStone since last May (2007), prior to the 3:2 stock split (up 52% since that June 4, 2007 post titled FCStone Group Inc. (FCSX). It has had some ups and downs since my analysis but may finally be ready to make the true up-trend I felt it was capable of making.
As you will notice, tonight’s stocks are very similar to last night’s stocks (TITN, RIO and MTL) as they are moving higher (new 52-week highs) on above average volume: momentum plays.
I will continue to seek out and swing trade momentum stocks regardless of what the major indices are doing. This method is working and until it stops, I will continue to research these opportunities. I am a longer term trend trader but those strategies are not working well when considering the risk/reward based on the recent success rate. The expectancy of these types of trades has gone down as false breakouts have increased and macro market momentum has stalled and even started to point south.
Great site. I’ve adopted the same strategy over the past year (volume, price action, charts) and I really believe in the William O’Neil approach.
As a novice swing trader (been swingin’ for a year, and mostly day trade before that), I’m finding it hard to be patient in this market. Your blog is refreshing because you seem to emphasize discipline with only taking the best setups.
That being said, do you post your current positions anywhere? Or just prefer to throw out setups for your readers to consider themselves?
Thanks for all the good content!
Reese,
Thanks, yes the method is profitable but it comes down to each individual trader. I post current positions or positions I am buying and selling from time to time. I also disclose positions I am in if I am doing research on the stocks. I don’t keep a running tally because it’s not important. I talk about losing trades and winning trades. What I don’t do is come out of nowhere and talk about a trade I made privately and boast about the profits. I only talk about the stocks on the blog and sometimes I own them and sometimes I don’t. I don’t own them all!
Some stocks I trade will never make the blog because I just don’t have the time to write about everything or keep tabs in real time. I don’t trade for a living so I only have so much time in the day for family, business, sleep, trading and blogging – among other things.
Hi Chris –
Forgive me, I lost your email so thought this comment would be the best way to reach you. Your interview is up and running. It will be on our home page Thursday morning, but you can give your readers a sneak peak if you’d like with this link:
http://www.traderinterviews.com/programs/permalinks/TI_2008-02-28_ChrisPerruna.php
Thanks again!
All the best,
Tim
Gotta love the weekly VIVO chart. I still review the weekly charts in William O’Neil’s How to Make Money in Stocks(2nd edition).
I don’t think he has much in the way of triangles, but weekly patterns are fun and profitable to trade.
I bought VIVO at the end of October when I thought it was making a rebound. After I learned it wasn’t, I decided to keep it as long as it didn’t drop.
I hope my long wait is over.
Reg. AMZN. Notice below 10-wk & 30-wk MA, cross-over and both sloping down and price, even with today’s bounce below the above MAs. Of the 2007 highfliers, this one yet to come back to earth. Short worthy?
P.S. sorry, if this is a dup. post.. unable to find my original one listed..