Hello traders! Ready for September? Let’s surf…
Here’s my top 10 stocks to trade this week, in what I call the “Big Wave Index” (gotta keep the Hawaii theme going) It’s a short week, so just dip, don’t dive. Buying stocks on the gap down is not part of my criteria for Wave Trading. Therefore, with oil down $8 I will not include any oil stocks in this index (all the energy/commodity related stocks were removed from this index. However, I will try to buy some on a gap down). You need a “wave” = trending stock moving up, or down, backed with volume. These 10 stocks should do the trick. Remember, don’t put all your money in one stock. Pick six, and ride the wave.
AFAM
KNDL
CCC (breaks 10-week base)
DXPE
FSYS
QSII
GEOY
JRJC (volume picking up. Quiet breakout)
CNQR
ATHN
Link: 5-day chart Big Wave Stocks
Link: 3-month
… I haven’t scored these stocks, so I will probably purchase some near close of Monday. I’ll update you on the ratings later. All are very day-tradable on a trend. If you’re day-trading these stocks on a breakdown, set your entry to previous day’s low point to increase probability of sell-off.
Removed from last week’s list:
GMXR, CSIQ, CLR, ENER, APWR
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Other notes/surf report:
– Look to play the gap down on oil stocks. If there is a bottom, it will be confirmed so catch the gap back up. You may want to short some oil spec stocks since they will have continued weakness… GEOI, FTK, APWR
– Look for possible rally, then short SKF.
– Stocks I don’t like, but hope will rise for short entry: MR, AMED, HLF, LULU, OSTK, IRBT
Aloha,
Gio
Speaking of Big Waves .. Riding Giants was on the tube last night – Great flick !