You are here: Home / Archives for Daily Stock Screens

Stocks Building Bases

April 28, 2008 by 1 Comment

We start the week by studying stocks that are currently building bases. I decided to specifically narrow the list down to stocks that are building cup shaped bases. Each stock presented today contains respectable fundamental characteristics such as strong earnings and revenue. Many, if not all of the stocks below have been covered within the past 6-12 months on the blog. A few of the stocks listed are building their first major bases since their spectacular up-trends in 2007.

Each stock has gained support along the 200-d (40-week) moving average while building their current base. The market has been moving higher but many pundits are calling this positive move a “head-fake” or slight pause in the main trend which is down (in their opinion). I couldn’t tell you if they are correct but buying stocks while they make new highs during a suspect market can be costly if it reverses. I prefer to buy stocks making new highs during an obvious up-trend. In any event, let’s go over a few technical rules for stocks building cup or saucer shaped bases.

On the weekly charts:

  • Look for more up-weeks than down-weeks while the stock is building the base.
  • Make sure that the volume is higher during the up-weeks than the down weeks.
  • Volume should be below average or lighter during the down-weeks than they are during up-weeks.
  • Stocks tend to make 3-5 bases during a long run over a few years. Be careful with stocks making late stage bases (4th base or later); they are more vulnerable to failure as most of the “smart money” (institutions) have rotated their cash into new stocks.
  • Sell if a stock breaks out from a base on above average volume but suddenly reverses below the pivot point (ideal entry) that same day or a few days later.
  • Beware of stocks trying to make news highs on above average volume but fail to end the day in the upper half of its daily range. This may be a reversal and a possible red flag.

Read an article I posted last January on How to Calculate a Stock’s Pivot Point:

How to Look for a Cup with Handle (chart #1):

Look for relatively quiet volume as the stock builds the left side of the cup. Volume at the base of the cup should be slightly higher than the left side as support is coming into the stock. The right side of the base should have above average volume with more up-days than down days. The handle will be the last part of the formation and should slope slightly downward with lower volume than the right side of the base. The pivot point will be slightly higher than the highest point of the right side of the base. All breakouts should occur on volume 100% greater than average daily volume although IBD does say that breakouts above 50% do qualify.

How to Look for a Saucer with Handle (chart #2):

Look for relatively quiet volume as the stock builds the left side of the saucer. A saucer looks similar to the cup-with-handle but the dip from the high to the low is smaller and usually longer in duration. Volume at the base of the saucer should be slightly higher than the left side as support is coming into the stock. At this point, the base may almost qualify as a flat base. The right side of the base should have above average volume with more up-days than down days but this does not have to be as prominent as the cup-with-handle. The handle will be the last part of the formation and should slope slightly downward with lower volume than the right side of the base. The pivot point will be slightly higher than the highest point of the right side of the base. All breakouts should occur on volume 100% greater than average daily volume.

All stocks and charts are listed in alphabetical order:

[Read more…]

Filed Under: Daily Stock Screens, Stocks, Technical Analysis

Challenging the 200-d m.a.

March 17, 2008 by 5 Comments

Today’s screen is covering stocks that are trading below the 200-d m.a. and are currently attempting to challenge the line for the first time since their fall from 52-week highs. The first failed attempt to recover the 200-d m.a. is typically an opportunity to short or a signal to buy put options.

However, historical charts show that the likelihood of an ideal short setup comes when the 50-d m.a. is trading below the 200-d m.a. By the time the 50-d m.a. crosses below the 200-d m.a., a second challenge is taking place and this is where I look to initiate a position. I will be watching these stocks for that type of opportunity.

031608_nuva_daily.png

031608_flir_daily.png

  • NUVA – 33.92, screened a couple weeks back as the stock is now trading below the 200-d m.a. The stock is now trending back towards the 200-d m.a., also known as the next ideal short setup.
  • FLIR – 26.36, NuVasive reversed on Friday after a failed attempt to recover the 200-d m.a. The 50-d m.a. is still above the 200-d so this will keep me on the sidelines. However, the failed recovery and a crossover in the future will catch my attention for a trade setup
  • DECK – 105.23, the stock has moved from $89.88 to $102 over the past few days as it looks to challenge the 200-d m.a. for the first time. A failed attempt to recover this line will be the first short setup/ opportunity. I would like to see the 50-d m.a. fall below the 200-d m.a. before initiating a position.
  • CRL – 56.02, Charles River is in the same boat as FLIR and DECK as the 50-d m.a. is still trading above the 200-d m.a. The stock reversed on Friday as it attempted to recover the line.
  • OII – 61.30, the stock was up almost 3% on Friday on strong volume but the 50-d m.a. recently crossed below the 200-d m.a. The downturn of the 200-d m.a. is still premature but the overall trend seems ot be turning downward.
  • STRA – 156.00, the strong education stock is starting to hit hard times as the 50-dm.a. is trending downward towards the 200-d m.a. The price is currently challenging the 200-d m.a. for the first time in years.

[Read more…]

Filed Under: Daily Stock Screens, Shorting, Stocks

Daily Screen for Monday 3-10-08

March 10, 2008 by Leave a Comment

The market and individual stocks in general continue to get pounded so my screens will continue to provide us with short candidates or stocks trending lower. Today’s screen gives us five stocks that show the 10-week moving already below the 30-week moving average and two stocks headed in that direction.

Recent stocks trending down:

030908_cmtl_wkly.png

030908_ve_wkly.png

10-week average below the 30-week average:

  • CMTL – 42.59, the stock dropped $4.66 on Friday on volume 147% larger than the average. We also witnessed a large reversal at the 30-week moving average as the 10-week moving average continues to move lower.
  • VE – 75.43, the stock was down 15.29% last week with volume 350% larger than the 50-d m.a. on Friday (it was the largest weekly volume in years).
  • MR – 30.99, one of the top performing stocks on this blog in 2007; but it is now facing some trouble as the 10-week m.a. is below the 30-week moving average. Volume is starting to increase during distribution weeks.
  • MORN – 60.95, the stock failed to complete the $60-$100 run as the 10-week m.a. is now below the 30-week moving average. Volume is increasing with multiple distribution weeks over the past four months.
  • SI – 123.53, Siemens is falling on above average volume with a recent reversal at the moving averages. Both the 10-week and 30-week moving averages are trending downward.

[Read more…]

Filed Under: Daily Stock Screens, Shorting

Daily Screen for Tuesday 2-26-08

February 26, 2008 by 7 Comments

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.

022508_vivo_wkly.png

022508_vivo_daily.png

  • 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.

[Read more…]

Filed Under: Daily Stock Screens

Daily Screen for Monday 12-10-07

December 10, 2007 by 7 Comments

Daily Screen: Monday, December 10, 2007

Below are several stocks that were worthy of making my daily screen after the close on Friday. I am typically looking to accumulate additional shares of these stocks or add a new position to my portfolio. The strongest stocks will go on to make case studies in future blog posts where I will detail what I see.

How I develop and use these Daily Screens:

120907_fslr_weekly.png

Interesting Stock Making New Highs:

  • GFA – 40.50, a spread triple top breakout on the P&F chart; the stock made a new high on the daily and weekly charts on above average volume (volume was 258% larger than the average on Friday). Screened last week at $37.00.

120907_gfa_weekly.png

Stocks Moving Higher with Increasing Fund Sponsorship:

  • FSLR – 235.47, I first started highlighting the stock back in September

    FSLR – 100.42, the stock is consolidating after the super run from $20 to $119 over the past nine months. FSLR is related to LDK in this category

    as it was consolidating near $100 per share. The stock had already tripled in 2007 but I was not intimidated because sometimes stocks are priced low even though they look high. A 134% gain in three months.

  • CME – 707.00, the stock is up more than 40% since its low earlier this year and has made a new high (above $700) on questionable volume. The long term trend is still higher.
  • MR – 40.95, a long time favorite of this blog in 2007; a recent 24% bounce above the 200-d m.a. as it looks to recover to new highs. It must make new highs to remain a leader.
  • OMCL – 28.08, the stock has bounced from new high to higher low to new high. Example: $20.57 to $16.20 to $21.97 to $18.28 to $24.96 to $18.97 to $31.12 to $23.40 to ???. Another new high will be a positive sign for a continued trend.
  • JASO – 63.58, an original buy on June 13, 2007 at $24.55; a 159% gain in six months as the stock continues to trend higher on strong volume.

120907_jaso_weekly.png

120907_mr_weekly.png

*NOTE: Please do your own due diligence and buy at the proper risk/reward setups (AT YOUR OWN RISK). Don’t buy blindly and never treat this watchlist or my screens as a recommendation to buy or sell securities.

Filed Under: Daily Stock Screens
« Previous Page
Next Page »