College Hoops and the Stock Market

//College Hoops and the Stock Market

Hawk’s Scan Sentry Report March 26

Ok…I admit that I am a college hoops fan and have been enjoying following some of the games of the NCAA Men’s Basketball Tournament (‘March Madness’) this week. The obvious metaphor here is that the bracket picks that look the strongest according to the analysts’ rankings will not always be the best or correct choices. It’s the same with choosing stocks regardless of whether you are using technical analysis or fundamental analysis for your choices. The rankings are often irrelevant to the performance. When we trade the markets, the rise or fall in price is beyond our control… only our response to what happens is within our power.  As I watch some of the basketball games, it is interesting to observe the mental and emotional fortitude of the individual players and teams. Sometimes it is easy to see who will succeed and who will not in that high pressure environment by observing their emotional response to success or adversity. Here we have another analogy with trading… we must develop mental and emotional discipline as well as our intellectual and financial fortitude in order to succeed. Having a good coach makes a big difference.

As a part of our 20th Anniversary celebration, Jan Arps’ Traders’ Toolbox is offering a free webinar with esteemed trading coach Adrienne Tograhie on Tuesday March 20th at 4:30 PM (EDT). She will discuss some of the psychological challenges of trading and how to successfully address them.   Pre-registration is mandatory for this event, so please take advantage of this free opportunity and use the following URL link to register for her webinar:
http://tradingontarget.omnovia.com/registration/pid=75881331324225

What have you got to lose?

And now for this weeks charts… In the selections below you will find a few examples from my watch-list for this week. These include some early trend identification trades, pullbacks, and trend exhaustion trades. If you want further explanation of any of the indicators on the charts below you can find a ‘legend’ at this link.

_____Longs_____

CBSH

(I like the bullish accumulation in Radar1 Fear/Greed, the recent bullish signals in the Triple Trender and Radar3 Trend Strength as we approach the beginning of a Wave-5 identified by the wave pattern indicator. I will wait to see a breakout of resistance on heavy volume to confirm entry).

OSG

(I like the Pivot-Buy signal followed by the bullish trendline breakout, Triple Trender synchronization and now Radar3 is starting indicate bullish trend strength).

BXS

(This one may pull back to $12.50 support. I like the bullish breakout after a nice consolidation marked by a lot of buying pressure indicated by Radar1 Fear/Greed).

_____Shorts_____

OKE

(Here we see a Pivot-Sell Divergence signal coinciding with a couple of Trender Pullback signals after the Triple Trender turned bearish. Radar 1 Fear/Greed indicates a lack of buyers at the top of the rally in late January and a recent consolidation marked by sell strength. )

ARCC

(Note the Pivot-Sell divergence signal 11 bars ago. Radar3 and the Triple Trender are both bearish now).

May the trend be with you,

Hawk

Jan Arps’ Traders’ Toolbox is not an investment advisory service nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities customers should buy or sell for themselves. Examples presented on this site are for educational purposes only.  It should not be assumed that the methods, techniques, or indicators presented in these examples will be profitable or that they will not result in losses. There is a high degree of risk in trading.  Readers using this information are solely responsible for their actions and trade at their own risk. Readers should always check with their licensed financial advisor .

2018-01-08T07:56:19+00:00March 19th, 2012|Hawk's Picks|