Riding that Bucking Bovine

//Riding that Bucking Bovine

Hawk’s Scan Sentry Report October 31

Welcome to Hawk’s Scan Sentry Report. This is Sunday night with stock recommendations from Jan Arps’ Scan Sentry Toolkit for the week beginning Halloween 2011.

The American equities markets sure liked the news that came out of Europe mid-week last week. As you probably know, some of the world’s largest (and most leveraged) banks were once again promised an inconceivable amount of money in order to protect them from severe losses from some bad loans, this time in the form of government debt. It didn’t take long for some of that optimism to find its way into the American markets and quickly spark the bulls to decisively break out of our two and a half month trading range. What a ride that was. As a trader, sometimes we are like the cowboy in the rodeo whose job it is to try and ride that volatile bovine without getting bucked off  or severely injured.

Two weeks ago I wrote in this blog that, within the next few weeks, the S&P would break out of its upper range and then it would likely pullback one more time only to be followed by a rally to the upside again where it would find resistance around 1255 and 1300.  Well here we are today with the S&P taking a breather at around 1280 after climbing 200 points in three weeks.

Consequently, as I conducted my scans this weekend for trading opportunities, I found it particularly difficult to find any good short selling signals. Most of the set-ups I like to look for are currently bullish. Nonetheless, I like to be prepared for the whims of the market mistress. If she wants to go down, I want to be ready to sell short with some short-term trading opportunities while she does. If she wants to keep rallying, which is the general trend I expect, I’ve got some buying set-ups I’m looking at as well.  I’ll share some of these with you here.  Please note, these are not trading recommendations; these are examples to show you how I do my technical analysis to find trading opportunities.

And now here are a few stocks identified by the “Arps Scan Sentry Toolkit” that I am looking at for short term trading opportunities this week.

_____Longs_____

CAM

(Note the pullback into the short-term Triple Trender, the accelerating Radar2 Price Leader, and growing bullish histogram bars in the Radar1 Fear/Greed and Radar3 Trend Strength indicators).

RRC

( I like the combination of the Pullback 23 signal within the Bull Flag pattern combined with the recent pullback to the short-term Triple Trender).

CMS

( This one has made new highs on increasing Radar1 strength and pulled back to resistance levels. I’ld like to see a little more acceleration in the Radar2 Price leader from here. )

UA

( Although this stock may pullback to the $81.50 range, I like the upside potential of this one).


_____Shorts_____

DISH

( Note the Piullback 23 signal as the Triple Trender confirms bearishness).

VRTX

( Here’s a bearish Pullback 23 at the short-term Trender of the Triple Trender on a symbol which failed to rally with the rest of the market).

HMSY

( When one bar breaks all three Trenders of the Triple Trender it usually gets my attention).

 

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 .

2018-01-08T08:24:58+00:00October 30th, 2011|Hawk's Picks|