THE IMPORTANCE OF KNOWING FORMER RUNNERS

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

RE: HOW TO FIND THE NEXT ONSM FILTER

Any filter i play i use a 3-4% mental initial stop and same with the trailing stop.
With this filter you should always wait for GREEN hold and watch not only the ones that hit the filter for today but the failures from the last 3 days.To do this date offset 1,2,3 days and look for the ones in red or very small green.These "fails" have a good success rate when they hold green finally.
So for Tues you have the 7 from Fridays results plus fails ESCL TRMM WGDF CUP BPA RBY, a very manageable list of 13. Remember you can't take any filter i post just on sight results alone because it is ONLY a play on green hold,like you see for Fri ESCL was a big loser,that is actually very GOOD. It opened red and never came close to green.The farther they fall as a fail many times the bigger the gain they produce once they hold green.Anyone familiar with our old chatroom associated with the Stockfetcher/Muddy method yahoo group,BNG,will remember how we used to actually hope for a few of the matches to continue not only to fall over the next few days but get hammered.

HOW TO FIND THE NEXT ONSM (and MAMA) :)

A friend with a limited amount of time to chart/research stocks asked me how to find uptrending stocks that have pulled back a bit but if/when they pop they have a good chance of a decent gain over a few days.
I suggested he play around with this:

price lost between 3 and 7 percent over the last 1 day and close is above ema(13)and rsi(2)is above 50 and volume is greater than 200000 and close is between 1 and 15
date offset is 0

As you'll see it doesn't give a bunch of matches but can give some nice hits
Remember, GREEN hold/Average or above the stocks daily volume.

WATCHES 12/22

SYNM CPNLQ TRMM ROHI DCTH FORG LOCM TSTC DKAM MOVI ITKG SOFO URZ
Penny GTEM

All have been hit some in recent day/days
Wait for GREEN hold.

WATCHES 12/21

On the top of my watches from charts i find interesting:

MEMY WBTO PANC ACOR URXE GTEM TERN UFI HIMX GNVC

GREEN hold/avg. or above vol

RE: HIGH FLAG POST 12/15

Of the 20 stocks listed in the High Flag 12/15 post, today there were HAYZ 4% GNVC 38% MAMA 7% SKNN 11% NYNY 4% ALIF 15% TSTC 11% and for the 3 day gains there are NYNY 12% ALIF 19% MAMA 35% TSTC 40% GNVC 56%.

These are volatile stocks i watch/play,please remember that if you are newer to trading,they can run big in a very short time, and being volatile they can fall just as fast.
Always use the stop of your choice and only play these very small until you have the confidence to do otherwise.

Remember until the stock has broken the flag pattern it should be kept on watch for a new entry.
Some like SKNN will break that flag pattern to the downside but the good news is that many of these, like SKNN did, then turn into ZONE ( ema13/sma20 ) plays.

Muddy

A FEW ZONE PULLBACKS FOR 12/18

4 volatile stocks in the zone : XNN PXPL SKNN NWACQ

Of course i'll wait for GREEN hold on large vol/and or vol spikes.