Saturday, December 23, 2006


I know most folks that have traded for years have a list of stocks in their heads that once they start to run on volume can just take off.So this post is mainly for the newer traders that haven't been around long enough to have that list in their heads and the feel for how they can trade.
It's my opinion that newer folks spend too much time on too many filters and the backtesting of them.
I feel more time should be spent scanning for stocks each night that gained say over 10% that day on larger than their average volume and charting them to see under which circumstances they ran,such as out of the ema13/sma20 UBB pullack zone,very low rsi2,very low fast%k14,UBB flag pattern or any other indicators you may favor.
Now please check this out:
(11:20) Muddy: ZICA low vol runner at 1.01
This is what I said in the live chat Friday.I knew this stock from the past as a low daily average volume stock that had the ability to run once it started to go with volume as it was starting to do at around 11:20 p.m when I saw it on the high of day list.Look at the 1 day/1 min chart for it on Fri, you'll see I saw it almost at the start of it's run.This because I stay glued to the HOD list most of the time I am in front of the computer trading.This is because it works for me,it's my way and if you find your way then you should stick to it until/if it starts to fail.

(11:42) Muddy: 1.37
(11:47) Muddy: more vol spikes!!
(11:47) Muddy: 1.46

After it runs from $1 to 1.37 it's getting more volume coming in at a furious pace,spiking,in 5 mins it's at 1.46 running off to an unreal hod to 2.30. If you chart ZICA you will see why i remembered it,huge white candles on 2/01 3/20 7/19 9/27 plus 4 more times in 2005. I might have trouble even remembering what day it is but i don't often forget those kind !One other from Fridays chat:
(09:49) Muddy: Laura,watch green for GTEM
(09:50) LauraJ4957: gotcha, am watching
(10:40) Muddy: Laura,GTEM slight green
Laura and I have followed this stock over the last few years and know what it can do.

Look at it 3/16,6 days in a row down,it works itself inside the LBB at 2.33 then opens 3/17 at 2.35 and runs to close at 2.83
On 2/8 it's down 9 days,4 days inside LBB,on 2/9 it finally holds green with volume and goes from 2.65 to 3.34.
On 12/29/05 it's 3 days down,8 of the last 9 and at 2.19. On 12/30 it opens gapping down to 2.01 so i'm thinking another crappy day for it. Not quite,all of a sudden it appears on the HOD list and now it's just gone green. It runs from that 2.20 to close at 3.68! 2 weeks ago on 12/12 it went from 140k shrs to 3.6 mil shrs going from .26 to .43 making it a sq/vol/br watch,the next 2 days it continued up to close at .62 on 12/14. Then on Thurs it became a beautiful Muddy zone watch, the big red candle jammed right between the ema13/sma20, it fell from .36 to .31 quickly but i watched in case it went green. It did at about 10:40 running off to hod .445 closing at .43. The point of all this is to show you that history often does repeat itself in the world of stocks. Remembering former runners can give you a big edge.

Everyone have great Christmas, Muddy

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