Featured setups from Tuesday December 7 closing data symbol scan
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Notes for the Day
After a big down day, some bounce is to be expected. The challenge here is to avoid being stopped into certain stocks only to have a sell off continue later in the day or tomorrow; but we also want to avoid missing what might be a buying opportunity we’d later regret to have missed.
There is only one option – STOPS. Well, there is a second – CAUTION.
Cheers all.
Long Setups
General common strategy: Unless noted otherwise, buy stop just above the “high” value, with an initial protective stop at the low value of the bar, not below the bar.
Retracement or Pause in Up Swing / Up Trend
SBAC – communications
Test of Top – Continuation
HMT a nice looking chart with a test of top. Note that tests sometimes fail, so get stops in under this if long.
Short Setups
General common strategy: Unless noted otherwise, place a sell alert at or just below the low of the setup bar, and look for the first failed intraday bounce after the low has been broken. What we are looking for is price to push down, bounce a little, and fail again – this is where we want to get short.
Retracement or Pause in Down Swing / Down Trend
CPN – energy
CCU – media – if this does not trigger today, follow any minor bounce up with a sell stop below, for 1 – 2 days more.
COMS – communications tech; if it doesn’t trigger today, follow up.
Test of Bottom – Continuation
Special Situations
LTD – retail – isn’t a “test” but a tricky long here would be to lurk just above yesterday’s relatively narrow range down bar.
VLO (and virtually all of the energy sector – perhaps wait to see what happens at 10:30 before considering any tricky longs in this sector)
04.12.08 09:28 #