A Few Things

The SPX is still in the range, however the COMP is not. Also, note that the SPX range has a slight upside tilt.

The RUT is making a move to reach the highs on the daily.

I also stated on my 12/8 Stocktwits show that I was no longer bullish on gold and expected an “extended pullback. Well, here it is – Wait for it to carve out a base.

The USD$ is making a move to the 200-day MA.

I am incorporating some swing trading going into the end of the year, simply because it is easier to deal with as we head into an even more low volume holiday environment.

That’s all from me now.

Listen, I caught the dollar stocks en masse like no other and they boosted my YTD from less than +100% to over +300% by the end of summer. I am digging the dollar stocks again.

I will scan everything from the pennies up to $3. There are major setups developing within this space that reminds me of this past summer. I plan to hit them starting on Monday till whenever this is finished. I will post some of them here for you lazy people to ponder over.

Any PPT members here? How do you like the research reports? Anything else you want from me?

Also, I am looking for a childrens book titled “Henri’s Walk to Paris” written by Leonore Klein and designed by Saul Bass, published in 1962. If you know someone who has it, let me know. Don’t ask me why.

That is all from me. Have a good weekend.

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Just read this EPIC STORY (WARNING: Gross): http://forum.bodybuilding.com/showthread.php?t=120921191

Here are some examples of setups that I look for when I do my nightly scans. Tonight, I chose to look at the $5-10 range with 1MM+ volume.

There are a variety of things that I look for. For example, BLC is a stock that will test the Oct highs. INCY broke the Sep highs and is consolidating in a flag. MTW is a dual support play. NYT is a potential late sym tri breakout. TTWO is a breakaway gap down stabilization play. VVTV is a multi-month breakout and consolidation play. DTG is a classic flag pattern testing two MA’s.

Look like another doji day which means more chopping and neutral intra-day movement within a larger neutral range.

As the neutral range progresses volume should dry up and things should get even more illiquid until there is a major move.

One of the things that I do each evening is to look at the biggest and best gainers and decliners for the day. You can always pick out continuations or reversals, especially when a stock is up/down double-digits and more especially if a stock breaks out/breaks down on the daily.

The volume on the first day is nearly always the highest. The second day’s volume declines vs. the first day, but usually still remains higher than average, giving more than enough liquidity to get in/out of trades with ease. I like to stick with stuff that’s about 500k+ in volume.

Then, I check the stocks the next day in the pre-market session for any activity that catches my interest.

As an example, here are today’s biggest gainers and decliners:

As covered on my Stocktwits TV show tonight, I am neutral on the market, as I was last week and the week before that. Why? We are still in a neutral range, as marked. The COMP and RUT have different patterns developing, but both are also neutral. I am increasing focus on the dollar stocks again. It’s just that time of year.

The sectors also spell out “neutral”. I never try to force one side of a market unless I am more than reasonably sure that I have a high chance of being right. Instead, I just go with the individual stocks that work.

Gold went parabolic and I believe it will see a longer consolidation period. After that, who knows. The USO also is neutral as marked by a descending wedge.

In the end, never forget the higher probability trade setups. They will save you from a lot of unnecessary pain.