ADCT is a cheapie with volume. The surprise for this one would be to pop up for a day to test the gap overhead. Probably best for hit and run scalping for pennies off a 10-minute chart, or enter a swing trade on break of Monday's high on an intraday basis. The initial stop loss for a swing trade should be Monday's low.
One of the reasons we monitor the cheapies is that people tend to come back to the old names when the market gets frothy. Even though this is a weekly chart of BEAS, we should be on the lookout in case of a sudden upside breakout. The key number is last week's high at 14.29.
BRCD is another example. IF the broad market indices go to new highs and we get another round of buying panic, things like this could see a few good days of price gain and volume.
CL is probably the last thing on your mind for swing trading, but the fact is that the Dow and S&P are very strong indices, and at this late stage in the game, fund managers know that they cannot get fired for buying "real" stocks that pay dividends.
CSCO is set up similar to ADCT. It's been in a downtrend for a while now, but should it put in a higher swing low on test right here, there is a hit and run swing trade opportunity on the buy side, on break of Monday's inside day high. We would only take this trade home if CSCO can close above the 2/23 high of 23.90. Initial stop loss should be Monday's low. Remember, anytime we see inside bars and small range bars, think "whipsaw" and "tight stops".
Weekly ERTS chart looks like BEAS. Big triangle creeping toward the upper edge and potentially a breakout candidate. What we are looking for is a move to the upper edge, and then get on board a pattern on the daily chart, rather than to put a buy stop just above the upper edge and hope for the best. For all we know, it hits the upper edge, fakes and then moves back down towards the lower edge. There might be some options straddles that can used for potential breakouts, but I am not the expert in this area.
We gave up on the bull flag on GMST after it took too long, but it's a cheapie that is finding buyers. If you are trading intraday, watch the 10-minute chart for buy setups in case this upswing can get to the upside target of the 2/13 high of 7.84.
HET had been a breakout pick, and this is a prime example of a tiny fake break in one direction, and then off it goes in another direction. Another reason we don't use the edges of the pattern to enter buy or sell stops like most other traders.
That's it for today. I hope to be fully up to speed on this new format by tomorrow.
04.03.02 08:50 #