How I Trade Equities

//How I Trade Equities

Hawk’s Scan Sentry Report October 23

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 23.

I was talking this weekend with a couple of friends of mine from a local IBD (Investor’s Business Daily) group who follow my weekly report. Thanks guys!!! Some of them had been following some of my specific stock recommendations for months. It occurred to me that there may be some misunderstanding as to the type of stock trading for which I am offering technical analysis. Although I do have some longer term stock investments, I am a very short term stock trader. Not quite a day trader, but more aptly a ‘litttle-swing’ trader. It is for this kind of trade that I am posting my weekly technical analysis. I am generally in and out of my trade in 2 to 8 days.

First I look at how much I am willing to risk. Ordinarily I like to use a short-term Arps Trender for my stop loss, but if I am entering on the wrong side of the Arps Trender  I will calculate a volatility factor (ATR/Avg price) and risk less than 1.5 of that volatility unit. My goal is to make 4% or better on my ‘little-swing’ trade.  Be wary though, as this will sometimes create some relatively skewed risk/reward ratios. That’s why I like to be prepared with both long and short possibilities so that,  in general, I can take my positions in the direction of the broader market movement. In this way I endeavor to keep as much wind at my back as possible.  On occasion I will hold onto a stock longer if I believe that I have made a good entry on a trend, but usually I will get out as soon as I get a significant signal from the Arps Price Leader (Radar2) on my daily chart.

Of course, every trader must operate within a method that suits their own personality as well as their account size. And every trader must take complete responsibility for the outcome of each trade. I am not recommending my system to anybody; I am simply describing a process which works for me. I have the advantage of having access to some of the best technical analysis tools available, and I am trying to share that edge with you. I hope that this helps clarify the type of trading I am describing in these posts, and that perhaps it may give you some ideas for your own trading process.

And now here are a few stocks identified by the “Scan Sentry Toolkit” that I am looking at this week and some of the analysis behind my decisions.

_____Longs_____

SHW

(After pulling back to support we have a breakout of the flag pattern with all three Radar tools pointing up. Nice “Trend” divergence in the Radar2 Price Leader as well. This is precisely the pattern I predicted in a post several weeks ago  )

SYNA

(Another flag pattern breakout on very high volume with all three Radar tools and the Triple Trender looking strong with potential to get stronger ).

GNTX

(Note the recent pullback into the Triple Trender closing the unfilled gap, and the Radar2 Price Leader accelerating while the upward pointing blue histogram bars of the Radar3 Trend Strength Index identify an up-trend.)

_____Shorts_____

BAS

(I like the Overbought signal when Radar 3 Trend Strength Index is bearish. And I like the “Bearish Trend Divergence” in the Price Leader as well as in the Fear/Greed indicator. Beware, the Triple Trender is bullish!).

KEG

(Note the Pullback 23 and the overbought signal in the downtrend. Also the bear flag target is still unattained).

SLW

(Note Pullback23 and Overbought signal and synchronization of the bearish Triple Trender. Bear flag formation forming. Beware if the Radar2 Price Leader gets above its centerline).

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 .

2018-01-08T08:25:40+00:00October 24th, 2011|Hawk's Picks|