Hawk’s Scan Sentry Report December 12
Welcome to Hawk’s Scan Sentry Report, where equities trading ideas are provided by the powerful scanning tools of the Arps Scan Sentry Toolkit. This is Sunday night with equities analysis for the week beginning December 12.
The selections from last week did very well with each of the four I discussed (both long and short) ending the week in the plus column.
This week, as we look at the American stock market in general, the index futures contracts will expire; and, as we begin the week, all 4 major US indexes are up against near-term resistance. We are getting mixed signals from our Radar tools depending on which index we are analyzing. Looking at daily charts of the 4 major US equity indexes we see diminishing acceleration in the Radar 2 Price Leader on all of them, weak signals in both directions from the Radar1 Fear/Greed indicator, while the Radar 3 Trend Strength is still bullish on all the indexes. Of the 4 indexes, the Dow seems to be the strongest while currently the NASDAQ is the weakest. As we look at the futures contracts themselves we see that, in each case, the current contract (December 2011) , which as noted expires this week, is trading at a premium to the index which it follows; while the forward contracts (March 2012) are unanimously trading at a discount. To me this identifies a slightly bullish sentiment for the first part of this week. In the S&P contract our current short-term trading range is between 1225 and 1265, so we’ll be watching to see if either of those levels get broken and retested. Of course we’ll be looking at both long and short opportunities in order to take advantage of whatever opportunities present themselves.
Here are some of the stocks I’m looking at into the end of the year.
(Recent breakout from the flag pattern with all 3 Radars and Trenders bullish. I especially like that Radar1 Fear/Greed recently made new highs).
(Another breakout from consolidation with confirmation from all three Radars and Trenders. Beware if Radar2 Price Leader crosses below the centerline ).
(Another nice flag breakout with no more resistance to the upside! This one may still want to pull back to support around $43.90 again before completing the measured move of the flag pattern ).
(Although this one is starting to make higher highs, I like the bearish pivot divergence in the Radar1 Fear/Greed indicator).
(I like the way that Rdar2 Price Leader is crossing under the ‘slow line’ while the recent pink cross above zero in the Radar3 Trend Strength Indicator shows that the current bullishness in un-confirmed. I also like the Trend Exhaustion1 Overbought signal here).
(I like the Bearish Trend Divergence corresponding with the Trend Exhaustion 1 Overbought signal).
May the trend be with you,
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