I’m sure the bears are breathing a sigh of relief at the sight of pre-market weakness. I’ll be looking for shorts but I won’t enter any until my moving averages on my 30-minutes chart cross. I think that will take at least 3 bars (90 minutes). I’m also considering a gap fade on the QQQQ…
Potential swing trades:
See one of the recent ‘Chart Reading‘ posts for some potential swing candidates.
Potential day trades:
(From Briefing.com)
Gapping Down
KNSY -17% (reports JunQ, disappointing guidance), MRGE -14% (interim Co-CEO leaves co), MEDX -5.5% (says it may restate results), VPHM -3.2% (profit taking after 22% move last week), F -3% (Credit Suisse downgrade), LOW -4% (reports JulQ, misses by a penny), ISIL -2.9% , GLW -2.3% (profit taking after 20% move in the last week or so), CREE -2.2%, ALA -2.2%, DELL -1.9% (extends Friday’s weakness), BOBJ -1.9%, GOOG -1.5% (multiple firms making comments on the Commscore data), EBAY -1.2% (merchants seek mgmt change — WSJ).
Gapping Up
GKIS +53% (receives takeover bid from PPC), OLAB +22% (reports Q2), XING +12.4% (provides Q2 guidance), AV +5.6% (Piper upgrade), OIIM +5.7% (extends Friday’s 8.4% move), RMBS +3.4%, MLS +3.6% (extends Friday’s 25% move), CRUS +3.4%, NVEC +2.9% (moves up to #15 from #78 on the IBD 100 list), OATS +2.8%, NITE +2.3%, AET +2.2% (mentioned positively in Barron’s; affirms guidance), USO +1.8%, FTO +1.5%, PEIX +1.3% (extends Friday’s 8% move)… Mining stocks are strong on higher gold prices due to the re-emergence of the inflation and geopolitical hedge: CUP +6.2%, NXG +4.3%, BGO +2.7%, AAUK +2.7% (co may be a takeover target — The Observer), GLD +1.8%, NEM +1.1%… Under $3: CNR +23% (extends recent momentum, +140% in a month).
Disclaimer & How I use this list
That gap fade must be treating you pretty well since you’re using it so often, Mike.
actually some of the best days for it I didn’t even try it. There was a string of like 4 days in a row 2 or 3 weeks back when it would have worked like a charm. So I’m trying to be more consistent with it.
Mike,
Does the gap setup also extend to the QQQQ’s? I thought Carter’s set up focused more on the Dow and S&P stocks. I too am tracking todays action and although it hasn’t stopped out yet, I am not sure if we will fill this gap. Let me know if you are using this setup on individual stocks as well.
Victor,
Yes, John Carter favors the S&P and Dow. HE says the Nasdaq and Russell fill their gaps a large percentage of the time but less often that the S&P and Dow.
I just like using the Qs. I don’t do gap fades on individual stocks, only “multi-item markets” as John teaches.