Stockscores Foundation for the week ending October 29, 2019
In this week's issue:
In This Week’s Issue:
- Upcoming Events – Webinar Videos
- Stockscores Market Minutes Video – When to Trade Hard
- Stockscores Trader Training – Surprise Trades
- Stockscores Feature Strategy – Morning Movers
Upcoming Events – Webinar Videos
Here are links to the video replays of my recent webinars
10 Core Principles for Trading the Stock Market
How to Be a Profitable Stock Investor
How to Be a Successful Day Trader
Overview of Stockscores Trader Training
Stockscores Market Minutes – When to Trade Hard
This week, I show you the best times to be aggressive with your investing and trading of stocks. Then, I do my regular weekly market analysis, scan the market for trading opportunities and look at the day trade of the week on XNET.
Click here to watch this week’s Market Minutes
To get instant updates when I upload a new video, subscribe to the Stockscores YouTube Channel
Commentary of the Week – Surprise Trades
Some of the best trading opportunities come when the market is surprised by something that is not expected. These surprises can come in a variety of forms, here are some to watch for:
The Wrong Break of a Pattern – if you see an optimistic pattern building but then there is a price move that breaks the optimism, you will often get a strong move in the opposite direction. This is a signal that those who had been buying in anticipation of strength were caught on the wrong side of the trade. So, in addition to people short selling the market because of the breakdown, you would also have the Bulls who would sell to avoid large losses. The result can be a strong market move down.
Bucking the Trend – If the overall market is moving sharply in one direction but an individual stock is moving in the opposite, take notice. It may be that the company has compelling fundamentals that will drive the anti-market trend.
Breaking the Mood – if you see a stock in that has been in a long, well defined trend but then makes a strong price move with volume that breaks the trend line, take notice. There may be a strong fundamental reason that will reverse the market’s psychology. Since there are so many momentum traders trading with the trend, this break of the trend line could lead to a strong move in the opposite direction as traders scramble to get out of a crowded trade.
Surprising Strength – my favorite trading set up occurs when the market is surprised by a stock’s strength. I like to look for stocks that no one cared about and then suddenly come alive with strong price and volume action. This is a sign that new information has hit those investors who follow the company the closest.
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This week, I ran the Morning Movers Market Scan about an hour after the open on Tuesday. Here are some charts that I think are worth checking out:
NAVB is showing strength with very abnormal volume this morning, breaking out of a sideways trading range after the formation of a rising bottom. 7/10
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CLUB started to show life yesterday and it is continuing in to today. I wish the strength had more volume support and resistance at $2.50 may stall it short term. 6/10
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AQST broke its downward trend line yesterday, it may pull back for a few days but a break of a pull back is worth considering. 7/10.
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