Scanning for November Stocks Most Extended from 200 SMA

Nov 21, 2014: 2:20 PM CST

Which top trending stocks – both bullish and bearish – are most extended from their rising (or falling) 200 day Simple Moving Average?

Let’s use this simple yet effective stock scan to highlight eight trade-trending (or fading) candidates right now:

This scan was created from’s Screener Tool focusing on the stocks most over and under extended from the 200 day SMA.

The scan charts the stocks farthest away from the average in percentage terms.

Right now, Monster (MNST) is the most extended and trending stock, followed by Edwards Life Sciences (EW), Yahoo (YHOO), and Southwest Airlines (LUV).

The general strategy here is to highlight these as strong relative strength candidates and put these on watch-lists for future buy signals, usually on retracements. Continue Reading…


Rest Easy with this Options on ETFs Trading Strategy from John Carter

Nov 20, 2014: 11:35 AM CST

Have you ever wanted to reduce stress with your trades?  Of course, we all do.

John Carter released a quick video entitled “My Favorite Ways to Trade Options on ETFs” which combines the option world with broader ETFs.

I’ve always been a huge fan of Carter’s work and am proud to count myself as an educational affiliate of his Simpler Options trainings.

Carter goes beyond directional put and call buying strategies and introduces tips and tactics specifically designed to cut your risk in directional plays.

He also takes a moment to explain a longer-term projection – and potential trading opportunities – for the US Dollar Index.

Go over and watch his new free video – it just requires an email address – and learn from John’s truly simple yet effective approach.


Continue Reading…


Russell 2000 Showing Relative Weakness at the New Highs

Nov 20, 2014: 11:29 AM CST

A quick “Quad Index” Grid shows us that the small-cap Russell 2000 is showing relative strength to the other major US Equity Indexes.

Let’s take a moment to update our charts and highlight this situation and what it may mean going forward.

I’m charting the futures contracts for the main index markets and we’re seeing three indexes strong and trading near their recent swing high from November.

However, the Russell 2000 peaked on November 13th and has turned down sharply from there, giving ground that the other indexes have defended.

The divergence is another caution signal in a market that continues to charge ahead full-speed without hesitation. Continue Reading…


Nov 19 Midday Market Update and Stock Scan List

Nov 19, 2014: 2:42 PM CST

Price action continued its bullish activity despite a morning retracement against the broader trend.

Note the support/reversal level into 2,040.

Let’s update our charts and highlight some strong trending stocks for potential candidates to trade:

The trendlines converged into the key 2,040 level and we saw another Bullish V-Spike Reversal event thrust price back toward the opening price.

We’ll focus our attention continually on the 2,050 and 2,040 levels along with the key V-Spike Reversal down (yesterday) against 2,056.

Continue Reading…


Trading the Extended Intraday Run

Nov 18, 2014: 3:52 PM CST

How do you trade run-away markets?  Very carefully!

Let’s chart the intraday stock market action and focus on a kindergarten-simple strategy that beats virtually all others when the market forms these sort of creeping-trend patterns.

With the market overextended and negatively divergent into resistance, logic and most strategies suggested odds favored a retracement lower.

However, the alternate “unexpected” thesis planning called for a strong breakout on a trigger to new highs, which would be generated by another short-squeeze and stop-losses triggered by the bears.

We ALWAYS plan a logical/dominant thesis and then buffer it with an equally plausible alternate thesis to be objective and allow us time to adapt to real-time market changes.

That’s what I repeatedly stress and teach to members of the Premium Strategy Planning reports each night.

I also strongly highlighted this “violent, upside break” potential in this morning’s Market Briefing with TradeStation.

Our plan often calls for larger price movement to occur IF the alternate (unexpected) thesis triggers.

That’s because a lot of traders will “do the right thing” according to logic and then wind up trapped, forced to cover losing positions quickly.

That’s how Trend Days like this develop and sustain themselves the whole session.

So how do you trade these rare but real events as they develop? It’s actually so simple – yet hardly anyone does it. Continue Reading…

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