Sunday, October 30, 2011

A Few Thoughts Going Into the Week Ahead

Sorry about the late post tonight traders and also for the lack of a video this week (although I don't know how many care about that or not).   My wife and I got a day away from the kiddies this weekend to celebrate my birthday by visiting the Pro Football Hall of Fame in Canton and am just now catching up on stock stuff after also watching my Steelers FINALLY beat the Patriots at home this evening.  It was a good few days. 

After going through my scans Friday, I didn't see too many nice setups, but that is to be expected.   This market has had an amazing run and after Thursday's major move, many stocks still could use some rest to setup nice patterns.  Actually, Friday couldn't have been more perfect in terms of the type of consolidation the bulls should want to see here.   No damage was done to charts on Friday at all, and many charts were still moving as I saw a positive breadth number in my scans.   Another day or so like that would be PERFECT.

We are still overbought in a number of ways so chasing here can get you in trouble.  I have a couple of longs on going into Monday but I also took profits on ZIP Friday and will continue to take some profits as I get them.   The T2106 and T2108 in Telechart are showing a market that is reaching extreme levels and could pullback.   The scan I use from Pradeep's Market Monitor for sensing momentum extremes (# of stocks up 50% in a month) is also flashing some warning signs,  as it hit 62 stocks on Friday.   I've seen higher, but anything over 25-30 is a sign that a quick, sharp pullback could be around the corner.   That's doesn't mean it has to happen, especially in a very strong market, but don't be shocked if we see it.


I'll share the few charts I am watching going into Monday here, although several traders have posted them already on StockTwits so you may know some of these names already.   If we do rest a bit, there will be TONS of nice flag patterns that set up to play later in the week, so be patient if you're not in this market currently.   Earnings plays are really working nicely as well so keep your eyes peeled to the after-hours and pre-market most active pages for ideas there. 
BJRI
 SCSS
A Few Momo Names the Daytraders are Watching
All Charts from TC2000, Courtesy of Worden Brothers, Inc.
Good luck this week - hopefully the great action continues. 

5 comments:

Anonymous said...

Great post! I was wondering, what criteria did you use to create the pocket pivot line the middle window? Thanks!!!

Mac said...

Check the "Top Posts" page at the top of the site and there are some links for those scans. I use TC2000 for all of my scans as well.

Anonymous said...

I do missed the videos.

Anonymous said...

hi mac

dow is -276.1 points again, really not easy. such a irregular rally. this is the 2nd time a recent gap-up being damaged since last 2 weeks.

if the rally is to be continued, then it must do another gap-up no later than wednesday. however, the best news from europe is gone. china maynot be saving the PIGGS but that china to save PIGGS was the reason behind the thursday crazy gap-up.

mini-me

Anonymous said...

the pattern of DAX suggests this is not the peak yet.

im abit confused as the retracement today (dow, europe markets) is too big more than a healthy overbought correction.

mini-me