The Record is Clear

//The Record is Clear

Welcome to Hawk’s Scan Sentry Report.  This is Mayday Sunday with stock picks for early this week.

It is very important to keep detailed records of your trading process. That is the only way we can empirically learn how to trade these unpredictable markets. Of course, because of the nearly infinite permutations that the market takes, what appears to be true one week may not be true the next. That is part of the beauty of these markets, they are always changing and showing themselves in unexpected ways. Nonetheless, the best we can do is to strive to recognize patterns from the data that we have… patterns in the markets as well as patterns in our own trading methodology. Along with other important trading data, it is extremely helpful to keep track of your reasons as well as your methods for entering and exiting your trades.

As I was reviewing last week’s Scan Sentry picks, several observations were noted. Last week my short position picks did not do as well as my longs (as would be expected when the indexes break two year highs)…  and although some of the long picks did significantly better then the S&P futures contract (PSSI, LUK, SSL in particular), not all of my recommendations turned out to be profitable. The best ones were generally derived from the TrendExhaustion1 tool giving me signals when the overbought/oversold cross occurred about the same time the fast line/slow line cross occurred.  As it turns out I also noted that, in general, those symbols which did well on Monday carried on and improved throughout the week. Those which were laggards on Monday failed to gather enough momentum to beat the S&P index. That is another example of why it is so vitally important to have an exit strategy, as well as an entry strategy, for every trade. Stop loss is, of course, essential; and a reasonable profit target is extremely helpful. Sometimes I also use a conditional timed exit as well. If my position has not made any progress toward my expected results within a few days,  I’ll exit at break-even or at  a small loss and look for other opportunities.

This week  I am looking for two different types of set-ups using the Arps Scan Sentry tools in the TradeStation scanner: pullbacks in this  uptrend and bullish breakouts from consolidation. For short opportunities I am looking for pullback opportunities as well. Below you will find my picks along with some charts showing the Scan Sentry indications for each of the selections.

Symbol-

(longs)                         (shorts)

CHD                            TSTC

IHS                              HT

CL

DTV

IMAX

CATM

CERN

TNAV

All of these symbols showed recent signals in the Trend Exhaustion 1 tool.

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 .

2018-01-08T08:57:44+00:00May 2nd, 2011|Hawk's Picks|