Here is a high momentum stock watchlist that could set up cup and handle trades or continuation pattern trades (see the free Stock Swing Trading Mini-Course). Patterns are listed below for both US and Canadian markets.
The stock market is in an uptrend and giving us the thumbs up for taking long trades that meet strategy parameters.
Here is the summary analysis based on the market health indicators.
- The S&P 500 made new highs on Nov 9, as did small-cap stocks (Russell 2000), and the Nasdaq came close.
- 83% of NYSE stocks above there 50-day moving average. This means lots of stocks in uptrends.
- No single-day drops of 2% or more since late October.
- NYSE advance-decline line making new highs.
- No red flags currently.
The stocks below aren’t trade recommendations. These are stocks that are possibly forming valid patterns based on the strategies discussed above. Until they form a valid pattern, I don’t trade them. And even if they do form a valid pattern I can’t trade them all. The list can be further reduced by considering risk/reward ratios and profit potential based on the target price.
Lots of companies have earnings out soon. Check before trading.
Scanning is not an exact science. Things get missed. See any stocks you think should be on the list? Comment below.
US Stock Watchlist
LB – Contracting. Earnings soon.
CELH – Contracting. Consolidating.
SGRY – Broke out on Nov. 10 (no signal). May consolidate again just above prior contraction.
BBIO – Contracting. Consolidating.
TSLA – Contracting. Bigger pattern than prior contractions–can be a warning sign.
Canadian Stock Watchlist
Lots of stocks in the same sector. Be aware of over-exposure.
SLVR.V – Has pulled back to a prior breakout point.
JAG.TO – Contracting.
HPQ.V – Contracting. Consolidating.
TBR.V – Contracting.
BRAG.V – Contracting. Consolidating. Odd shape. Very loosely fits parameters. Volume needs to drop on consolidation.
IPT.V – Recent consolidation was not correct. Watching. Ideally contracts more.
SLL.V – Contracting. Consolidating.
PLTH.CSE – Needs to contract more. Another drop and rally most likely needed.
TLO.V – Broke out of a consolidation Nov. 11.
AGC.V – Contracting. Consolidating.
ABR.V – Contracting. Consolidating.
TXP.TO – Contracting. Consolidating, ideally sees a volume drop.
Consistent swing trading means following a specific routine. When we deviate from a tested strategy our results become unknown, and likely very inconsistent. Find out how much those mistakes (deviations) are costing you.
Cory Mitchell, CMT
Disclaimer: Nothing in this article is personal investment advice, or advice to buy or sell anything. Trading is risky and can result in substantial losses, even more than deposited if using leverage.