Welcome to Hawk’s Scan Sentry Report. This is Sunday night June 5th with stock picks for early this week.
I want to thank Jan for doing an excellent job writing the blog last week. He wrote a clear explanation of how the flag pattern works and suggested 3 potential buys and 3 potential sell opportunities. As the S&P dropped 2.6% last week, Jan’s picks provided a combined return of 4.18%… That is 60% better than simply shorting the S&P index last week. It is a real treat for us to reap his experience of over 50 years trading the markets.
So, with the drop in the American stock market last week, I thought it would be interesting to to look at the TTB Triple Trender applied to all of the stocks in the S&P index in order to see what the market in general looks like. When I sort on the ‘Triple Trender Score’ column, and then look at how many stocks have closed below all three Trender’ lines versus how many are above all three Trender lines, it becomes apparent that the bears have taken control of the Standard and Poor’s 500 stock index. Over 260 stocks out of 500 closed below all three Trender lines last Friday as opposed to only 70 which closed above all three Trender lines. And when you apply the Triple Trender to a daily chart of the S&P futures contract you see that, as of Thursday, the the TT5 Triple Trender plots all three Trender lines above the price…. which is a relatively bearish formation. If the index breaks below support at around 1290 we could potentially see a drop in the index down to somewhere around 1245.
So, I ran the TTB TRIPLE TRENDER through the TradeStation scanner to look for trade set-ups and found the following recommendations for this week. Remember, although stock selection is important, sound money management is the most important key to long term success in these financial markets.
Here are the picks…
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 .