Current Scan Criteria

These are my current scan criteria. As it stands this scan returns about 48 stocks, which are then used as the input for other scans. My main concern is with getting the most liquid stocks that move a little (Beta > 0.8). My main issue with liquidity is to ensure I get the best options spreads possible.

Scan - 23 February 2015
Scan – 23 February 2015

Chart Analysis – $TWTR

Much brouhaha about the Twitter rally in the past few days has got me watching the chart quite closely. It is still in a downtrend, so I’m looking at this strength as an opportunity to get short the name. The only issue that concerns me is the chatter about Carl Icahn, though chatter is chatter and not a trade plan.

TWTR - Weekly - 8 January 2015
TWTR – Weekly – 8 January 2015

Looking at the weekly chart above, it is clear that there is definite supply from 41.27 – 43.94, and that the market is in a downtrend, making lower highs. I’ll be looking to get short into that – probably sometime next week I’d imagine. My stop is above the zone and I’ll be looking for it to print below 30. There really hasn’t been a “blow-off selloff” in this stock, so I am waiting for that before I consider getting long.

Chart Analysis – $CMG

$CMG (Chipotle Mexican Grill) is looking fairly bearish to me. Looking at the weekly, it is really struggling up here after trying on many different occasions to continue the uptrend, but each time it just makes a lower high.

CMG - Weekly - 3 December 2014
CMG – Weekly – 3 December 2014

On the chart above I only see demand at 508, making this a great risk-to-reward trade. On the daily though. there is some demand at 595 that the bears need to push through.

I am looking at the 30 minute chart for zones to sell the rallies and I like the supply on top of supply at 669, then at 673.

CMG - 30 Minute - 3 December 2014
CMG – 30 Minute – 3 December 2014

All in all a bearish looking chart, showing relative weakness to the market with some nice supply above. A good looking setup, with extra guacamole on the side.

Trade Idea – Google

$GOOGL has been a laggard of late, and I don’t think the worst is over for the tech giant. It has been grinding up slowly, and I am looking to get short once it grinds it’s way to the $554.61 level.

GOOGL - 30 Minute - 25 November 2014
GOOGL – 30 Minute – 25 November 2014

My first target on the trade is $533, but I really like the 508 level as the final target, where I will look to reverse. My stop on the trade is above the zone at $555.87.

My Current Stock Scans Explained

I’ve got two scans that I use to look for potential trade setups everyday. With over 6,000 stocks to choose from, it’s important to get that down to a more manageable number, especially if you’re a one man show like me.

My first scan really just gets me the most liquid stocks that tend to move a bit. So my criteria is:

  • Last >= 20 (to get that huge 6,000 number down. Large institutions also don’t look at penny stocks, so neither will I)
  • Beta >= 1 (I want the stock to move a bit)
  • Volume average >= 2000000 (I want only the most liquid stocks)
  • Open interest calls-puts >= 10,000 (I usually trade options, so I want the tightest bid-ask spreads)
Scan 1
Scan 1

I use Tradestation for this (pictured above) but you could just as easily use a site like Finviz. This usually gets me down to a list of about 220 stocks. Once I have those, they form the input into my second scan, which is based off of my trading chart – the 60 minute chart.

My second scan, which runs hourly throughout the day, looks for stocks from the list above that have made an extended range candle on the 60 minute chart. In other words, they have just made a candle with a range that is 2.3 times larger than the average of the previous 23 candles. This tells me that there is some big player(s) involved, and helps me find where the action is at. Here is an example in $CAM where it made a big ERC out of the $58.27 level, so I will be looking to buy when it retests that zone.

CAM - 60 Minute - 24 November 2014
CAM – 60 Minute – 24 November 2014

 

To enhance your odds even more, take a look at the finviz groups page (I look at the three month performance), and cross check a stock you want to trade based on the above scans to see if it is in one of the top 2 or 3 sectors. Getting help from the market and sector on any trade is a huge odds enhancer.

I hope this helps. I know it can be a daunting task sifting through thousands of charts looking for a viable chart to trade.

Charts Of Interest – 23 November 2014

Aruba Networks ($ARUN)

This had a big gap down this week and looks bearish. I think we can get down to $14.60 before we see some real buyers come in. I am looking to sell any move that gets close to $20.

ARUN - 60 Minute - 23 November 2014
ARUN – 60 Minute – 23 November 2014

Citigroup ($C)

Citi has been rallying fairly nicely from $48, and I am looking to join. I like the two highlighted zones, namely $52.87 (slightly more aggressive) and $51.45.

C - 60 Minute - 23 November 2014
C – 60 Minute – 23 November 2014

Canadian Solar ($CSIQ)

The weekly chart is not all that great on this one, but the 60 minute zone is tight enough that I am willing to take a trade, considering that if it holds we are putting a large bottom here, in other words, if it holds, we have a lot of room to run.

CSIQ - 60 Minute - 23 November 2014
CSIQ – 60 Minute – 23 November 2014

Haliburton ($HAL)

It looks to me that last week we finally flushed the weak longs and this is ready to go. This is a good looking position trade to me.

HAL - Weekly - 23 November 2014
HAL – Weekly – 23 November 2014

Huntsman ($HUN)

Good looking zone here at 23.12, nothing fancy, just good zone, good RRR.

HUN - 60 Minute - 23 November 2014
HUN – 60 Minute – 23 November 2014

Juniper ($JNPR)

This has put in a base on the weekly chart and I really like the look of the 20.52 level for a long. Solid setup.

JNPR - 60 Minute - 23 November 2014
JNPR – 60 Minute – 23 November 2014

 

 

 

Charts Of Interest – 20 November 2014

Yahoo ($YHOO)

This has been on a tear and might be looking to pull back a bit. I’m looking at the 48.56 level to enter a long position.

YHOO - 60 Minute - 20 November 2014
YHOO – 60 Minute – 20 November 2014

 

Netflix ($NFLX)

Netflix got pounded after earnings and is still digesting. I like this one for a position trade, and I’ll be looking to trade it at the 354.17 level. It’s working off weekly demand and I see weekly supply at 475 which gives us a lot of room to go.

NFLX - 60 Minute - 20 November 2014
NFLX – 60 Minute – 20 November 2014

 

GoPro ($GPRO)

This one has been a high flyer but has failed a number of times at 85.50 so I am looking to get short. It made a lovely overnight level at 78.96 which is where I am looking to get short, targeting 60.

GPRO - 60 Minute - 20 November 2014
GPRO – 60 Minute – 20 November 2014