Hawk’s Scan Sentry Report October 17
Welcome to Hawk’s Scan Sentry Report. This is Sunday night with stock recommendations from Jan Arps’ Scan Sentry Toolkit for the week beginning October 17.
Well, it is obvious to most technical analysts that the S&P index is once again resting at the top end of the trading range of the last 2 months, and folks want to know if it will break through this resistance, or once again be turned back by the persistent growling of the economic pessimists. For what it’s worth here’s my two cents.
The NQ has already broken above its two month highs and has retraced 80% of its losses since the Summer highs of July . This index is a leader I expect the rest of the American markets to follow. Also, I expect the bulls to run the buy stops which are certainly placed above the S&P index highs around 1225. This should add more fuel to our current rally inspiring even more bulls to jump in on the breakout momentum. At that point the ‘Big Money’ may cash in a little bit by selling into the rally and potentially forcing the market into retesting our current levels which will by then be a support level. This would create another buying opportunity which could push the S&P index up to the next resistance levels around 1258 and 1300. I wouldn’t be surprised to see the NQ retest 2420 in the next couple of weeks.
Of course this is all speculation… That’s why they call us speculators. No one knows what the market will do. But as long as my trading account can handle it, I’d rather be a speculator than a spectator! As always, I’ll be looking for both long and short opportunities so that I can be ready to take advantage of what the markets actually do. Below I offer for your own perusal some of those stocks that I am looking at this week… and some graphic examples of the technical indicators I use to make my trading decisions.
Here are a few stocks that I am looking at…
(Note the breakout from consolidation and the early trend detection from the Triple Trender and the Radar3 Trend Strength indicator. Also note the increased buying indicated by the Radar1 Fear/Greed histogram and accelerating price movement in the Radar2 Price Leader.)
(This looks like a nice pull-back in our uptrend, identified by our Pullback 23 indicator. Also note the accelerating Radar2 Price Leader and strengthening Radar1Fear/Greed).
(Note the breakout of the flag pattern with the target at a previous high. Also note Triple Trender alignment and accelerating Radar2 Price Leader and increasing bullishness in the Radar1 Fear/Greed indicator).
(Note the Type 2 “Trend Divergence” in the Radar2 Price Leader and the Pullback 23 signal coincident with an overbought signal in our TT6 Trend Exhaustion 1 indicator).
(Note the coincident Pullback 23 with the overbought indication from our latest TT6 Trend Exhaustion 1 indicator near resistace. Also note a Type 2 “Trend Divergence” in the Radar2 Price Leader).
(Note pullback to the short-term line of the Triple Trender coinciding with a Pullback 23 signal within a bearish flag pattern).
May the trend be with you,
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 .