I thought I would be able to get my post out before the Super Bowl, but I wasn't even close. I am gonna keep it short tonight with just a few picks. Plenty of stocks from last week's list are moving, so if you missed them, check out the last few posts.
J. Crew Group, Inc. (Public, NYSE:JCG)
JCG is looking pretty good here as they are neatly consolidating their recent IPO breakout. If it can clear the trendline shown below, then it could be headed back to all time highs.
T. Rowe Price Group, Inc. (Public, NASDAQ:TROW)
TROW has traded a neat cup and handle and is consolidating near the 20sma. If it breaks out here, it should have enough power to follow through.
Marvel Entertainment, Inc. (Public, NYSE:MVL)
MVL doesn't move much, but it looks like it is getting ready to attempt a breakout.
Daktronics, Inc. (Public, NASDAQ:DAKT)
The DAKT chart is reminding of XING's chart before the recent breakout. If it can clear the downtrend line shown below, then it may be off to the races.
Broadcom Corporation (Public, NASDAQ:BRCM)
If the markets pull back this week, which by looking at some 60 minute charts looks pretty possible, then BRCM may be a good performer on the short side. Semiconductors continue to lag and BRCM has worked off the oversold readings in all the indicators.
That's it for tonight.
Good Luck,
DT
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I'm a little concerned with the lack of volume lately in some of these issues. How much emphasis do you place on volume analysis in your research? Also, take a look at the weekly for TROW, two dojis in a row. It sounds like you look at multiple timeframes in your analysis. How much emphasis do you place on the higher or lower timeframe when making a decision to enter a trade? Great blog, keep up the good work.
Hey MT,
Good Questions. First, I do consider volume, especially for long trades. If you look at TROW for example, the volume is higher during the right side of the cup and it is drying up in the handle. I would want to see an increase in volume as it clears the handle, but you often see low volume candles just before a potent move. Since I am usually buying before the breakout, I pay more attention to volume after I am in. Second, I do look at multiple timeframes. I tend to use the weekly charts to screen my trades and the daily charts to fine tune entries and exits. If I see conflicting charts, I favor the longer term of the charts. The doji's don't concern me until they are confirmed by another candle in any direction. A doji in itself doesn't signal anything. It is just a warning that there is equilibrium in price. It could resolve either way. Hope this helps,
DT
Very interesting! I'm surprised that you screen for trades with weekly charts considering your trade duration is so short (2-5 days).
Great Blog! Can you share how do you scan and choose these stocks? What criteria do you look for?
MT,
I usually look at daily charts as I scan for stocks each night, so I have to say I begin with that. But, once I narrow down my list, I switch to weekly charts to make sure the weekly charts are in gear. I am basically looking to remove some noise from the charts and get a clear longer term picture. I prefer a stock in a strong weekly uptrend, that is pulling back on the daily chart. DAKT is a good example that shows a clear pennant on the weekly chart, while the daily was a little messy.
Siya,
Thanks for the compliment. I don't have any special scans although I am working on some. I basically look at several hundred stocks over the weekend and narrow down the list to a hundred or so. I then review these each night for that week in addition to any new ideas or sector plays I see during the week. Hope this helps.
DT