Tuesday, March 12, 2013

Five Leading Stocks - They Will Be the Tell

The market keeps chugging along and while I still believe that under the surface, trading and making money has been much harder than people want to admit, the overall indices show no signs of putting in any sort of top.  I continue to struggle personally as I get stopped out of positions intraday on reversal spikes down and all sorts of what seems to be manufactured volatility (MLNX was the most recent as of four days ago), but as a trader, you will have periods like that where nothing seems to go right.   I am strictly day-trading and taking profits quickly because I haven't had any luck with anything else, but I am still hopeful that I can find some nice swing setups that can be held for more than a day and act well enough that I won't be prematurely stopped out of them.

In that vain, I am focusing on five main stocks here.  If someone asked to me name the leading stocks in this market, these are the ones that would immediately pop into my head.  All trade more than a million shares on average and all are over at least $10.  I believe all of them have had recent earnings releases as catalysts, which is always a plus.  As long as these names hold up and show no signs of distribution (and as of now they don't), I remain optimistic about this market going forward.  If these start breaking down, then you need to be much more careful with what you do.  

In no particular order, here are the "tells" going forward....

KKD
LNKD
CREE
NFLX
SNTS
 All Charts from TC2000, Courtesy of Worden Brothers, Inc.

Other names I am watching that are a little thinner in terms of volume as potential "leading" stocks include FIVE, NKTR, INFI, WDAY, and NVDQ.  These names are setting up here as well.  If they can breakout and hold, it would also bode well for this market going forward. 

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