that has Scottrade Elite
Scottrade NASDAQ Velocity and Forces.
If so please leave a comment, thanks
Video here:
Saturday, June 7, 2008
A FEW LATE PRE HITS
and a few other things:
There were some very late premarket leader board hits that ran awesome right after the opening bell this week:
From live chat Tuesday:
(Jun 03-09:26) 13th_FLOOR: SPDE just hit
(Jun 03-09:32) 13th_FLOOR: SPDE 1.75
Jun 03-09:35) 13th_FLOOR: SPDE 2
(Jun 03-09:37) 13th_FLOOR: SPDE 2.20
(Jun 03-09:38) 13th_FLOOR: 2.40 SPDE
(Jun 03-10:21) 13th_FLOOR: SPDE 2.57
(Jun 03-10:21) Laura: shew, SPDE a double
(Jun 03-10:23) 13th_FLOOR: SPDE 2.98 weeeeeeeee
(Jun 03-12:16) 13th_FLOOR: SPDE 3 hit
(Jun 03-12:17) omar: nice call on spde
(Jun 03-12:17) 13th_FLOOR: thank you
SPDE went on to hit a hod of 3.25
SPDE was also a former 0 vol stock that I've spoken of quite often.
(Jun 03-09:28) 13th_FLOOR: BSHF just hit
(Jun 03-09:49) 13th_FLOOR: very late hit pre BSHF near hod
(Jun 03-09:49) 13th_FLOOR: that was pump awhile ago
(Jun 03-09:50) 13th_FLOOR: is hod now 1.89
(Jun 03-09:54) 13th_FLOOR: BSHF at 2
BSHF opened at 1.64 and closed right near hod 2.03
From Thurs:
(Jun 05-09:17) 13th_FLOOR: PCYC just hit,news
(Jun 05-10:43) Laura: PCYC nice call 13th, up 21% now, 1.27
(Jun 05-13:25) 13th_FLOOR: plus i love IB pre board
(Jun 05-13:25) 13th_FLOOR: you can scan by amount of time in list
(Jun 05-13:25) 13th_FLOOR: thats how i caught PCYC today
(Jun 05-13:38) johnnyvento: what the hell PCYC
(Jun 05-15:53) johnnyvento: PCYC jiggy at the close
(Jun 05-15:53) 13th_FLOOR: PCYC again now 1.54
(Jun 05-16:02) johnnyvento: PCYC ends on hod even w/ all the selling pressure
PCYC closed at 1.55 from 1.07 open.
From Fri:
(Jun 06-09:30) 13th_FLOOR: ROYL late hit
(Jun 06-09:35) 13th_FLOOR: ROYL going some
(Jun 06-09:36) 13th_FLOOR: ROYL nice so far
(Jun 06-09:40) TomT: there goes ROYL
Opened at 9.05, hit hod 10.25
(Jun 06-09:11) 13th_FLOOR: destroyed last 2 days DESC just hit pre leaders
DESC opened at .165 , hit high of .2199, closed at .20
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Oh and I short ones up huge (20%+ )on pre board and that in the last 5 mins before the open start to come down fairly quick as did ISPH if anyone was watching it in pre.
(Jun 06-09:49) 13th_FLOOR: shorted 6.4 ISPH
(Jun 06-10:13) 13th_FLOOR: yes i got out 6 from 6.40
(Jun 06-10:13) 13th_FLOOR: may try again in 5.80's if
(Jun 06-10:31) SlowPoke: i shorted ISPFH @ 5.85(Jun 06-10:31) 13th_FLOOR: me too aqgain short 5.85
(Jun 06-10:56) 13th_FLOOR: ISPH might break 5.7 downside,if does i think to 5.50's
(Jun 06-10:58) sheezo: here we go ISPH
(Jun 06-11:13) omar: 13th are u still holding isph
(Jun 06-11:15) 13th_FLOOR: yes
(Jun 06-13:24) TomT: damn ISPH IS down
(Jun 06-13:24) TomT: well was down to 5.10
(Jun 06-13:24) 13th_FLOOR: ISPH more down
Reshort at 5.85, covered at 5.25
16% total short profits on ISPH
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Also I look to go long on any of the top 10 or so preleaders in price PLUS volume that have reported earnings since yesterdays close.
my list to scan were:
ISPH TMWD PARL MBRK XJT NSM FPP ONXX NOG PDO
PARL fit the bill perfect:
5:01 p.m. EDT June 5, 2008
Jun 05, 2008 (MARKET WIRE via COMTEX) -- Parlux Fragrances, Inc. (PARL:
announced its results for the fiscal year ended March 31, 2008. Sales from continuing operations were $153,696,374 compared to $134,365,094 in the prior year, an increase of 14%.
(Jun 06-09:40) 13th_FLOOR: PARL hod 4.26
(Jun 06-12:51) 13th_FLOOR: PARL not stopping on earnings
(Jun 06-12:52) TomT: damn it just hit 5.
PARL opened at 4.21, hit hod 5.19, closed at 4.90
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
and go short on "fluff" news ones when they hit red
TRX fit that bill:
(Jun 06-08:24) 13th_FLOOR: TRX kinda fluffy news imo yest,watching for red
(Jun 06-09:34) 13th_FLOOR: TRX nice red
Opened at 4.92, hit lod 4.34, closed at 4.46
Alot of different ways to make money in the markets,just gotta find yours i guess
There were some very late premarket leader board hits that ran awesome right after the opening bell this week:
From live chat Tuesday:
(Jun 03-09:26) 13th_FLOOR: SPDE just hit
(Jun 03-09:32) 13th_FLOOR: SPDE 1.75
Jun 03-09:35) 13th_FLOOR: SPDE 2
(Jun 03-09:37) 13th_FLOOR: SPDE 2.20
(Jun 03-09:38) 13th_FLOOR: 2.40 SPDE
(Jun 03-10:21) 13th_FLOOR: SPDE 2.57
(Jun 03-10:21) Laura: shew, SPDE a double
(Jun 03-10:23) 13th_FLOOR: SPDE 2.98 weeeeeeeee
(Jun 03-12:16) 13th_FLOOR: SPDE 3 hit
(Jun 03-12:17) omar: nice call on spde
(Jun 03-12:17) 13th_FLOOR: thank you
SPDE went on to hit a hod of 3.25
SPDE was also a former 0 vol stock that I've spoken of quite often.
(Jun 03-09:28) 13th_FLOOR: BSHF just hit
(Jun 03-09:49) 13th_FLOOR: very late hit pre BSHF near hod
(Jun 03-09:49) 13th_FLOOR: that was pump awhile ago
(Jun 03-09:50) 13th_FLOOR: is hod now 1.89
(Jun 03-09:54) 13th_FLOOR: BSHF at 2
BSHF opened at 1.64 and closed right near hod 2.03
From Thurs:
(Jun 05-09:17) 13th_FLOOR: PCYC just hit,news
(Jun 05-10:43) Laura: PCYC nice call 13th, up 21% now, 1.27
(Jun 05-13:25) 13th_FLOOR: plus i love IB pre board
(Jun 05-13:25) 13th_FLOOR: you can scan by amount of time in list
(Jun 05-13:25) 13th_FLOOR: thats how i caught PCYC today
(Jun 05-13:38) johnnyvento: what the hell PCYC
(Jun 05-15:53) johnnyvento: PCYC jiggy at the close
(Jun 05-15:53) 13th_FLOOR: PCYC again now 1.54
(Jun 05-16:02) johnnyvento: PCYC ends on hod even w/ all the selling pressure
PCYC closed at 1.55 from 1.07 open.
From Fri:
(Jun 06-09:30) 13th_FLOOR: ROYL late hit
(Jun 06-09:35) 13th_FLOOR: ROYL going some
(Jun 06-09:36) 13th_FLOOR: ROYL nice so far
(Jun 06-09:40) TomT: there goes ROYL
Opened at 9.05, hit hod 10.25
(Jun 06-09:11) 13th_FLOOR: destroyed last 2 days DESC just hit pre leaders
DESC opened at .165 , hit high of .2199, closed at .20
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Oh and I short ones up huge (20%+ )on pre board and that in the last 5 mins before the open start to come down fairly quick as did ISPH if anyone was watching it in pre.
(Jun 06-09:49) 13th_FLOOR: shorted 6.4 ISPH
(Jun 06-10:13) 13th_FLOOR: yes i got out 6 from 6.40
(Jun 06-10:13) 13th_FLOOR: may try again in 5.80's if
(Jun 06-10:31) SlowPoke: i shorted ISPFH @ 5.85(Jun 06-10:31) 13th_FLOOR: me too aqgain short 5.85
(Jun 06-10:56) 13th_FLOOR: ISPH might break 5.7 downside,if does i think to 5.50's
(Jun 06-10:58) sheezo: here we go ISPH
(Jun 06-11:13) omar: 13th are u still holding isph
(Jun 06-11:15) 13th_FLOOR: yes
(Jun 06-13:24) TomT: damn ISPH IS down
(Jun 06-13:24) TomT: well was down to 5.10
(Jun 06-13:24) 13th_FLOOR: ISPH more down
Reshort at 5.85, covered at 5.25
16% total short profits on ISPH
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Also I look to go long on any of the top 10 or so preleaders in price PLUS volume that have reported earnings since yesterdays close.
my list to scan were:
ISPH TMWD PARL MBRK XJT NSM FPP ONXX NOG PDO
PARL fit the bill perfect:
5:01 p.m. EDT June 5, 2008
Jun 05, 2008 (MARKET WIRE via COMTEX) -- Parlux Fragrances, Inc. (PARL:
announced its results for the fiscal year ended March 31, 2008. Sales from continuing operations were $153,696,374 compared to $134,365,094 in the prior year, an increase of 14%.
(Jun 06-09:40) 13th_FLOOR: PARL hod 4.26
(Jun 06-12:51) 13th_FLOOR: PARL not stopping on earnings
(Jun 06-12:52) TomT: damn it just hit 5.
PARL opened at 4.21, hit hod 5.19, closed at 4.90
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
and go short on "fluff" news ones when they hit red
TRX fit that bill:
(Jun 06-08:24) 13th_FLOOR: TRX kinda fluffy news imo yest,watching for red
(Jun 06-09:34) 13th_FLOOR: TRX nice red
Opened at 4.92, hit lod 4.34, closed at 4.46
Alot of different ways to make money in the markets,just gotta find yours i guess
Wednesday, June 4, 2008
Which Came First - Sykes or SYKE?
Actually it was Sykes. The famous (or infamous) Timothy Sykes stopped by our chat room this morning for a visit. Strangely enough, a few hours after he left SYKE hit a new 52 week high. 'Sup with that Timmay????? Coincidence? I don't think so.....
LOL, looks like Timmay has discovered new found powers to move the markets, influence traders, and single-handedly start a grassroots PTD rule revolt against the SEC. Wowser!
Just kidding Tim, nice to see you stop by.
Tuesday, June 3, 2008
Market Movers aka HOD list
Scrolls from bottom to top. Low of day on the left, high of day on the right. 52 week high and lows highlighted in green and red. This screenshot is a good example as it shows ACOR hitting 52s penny by penny.
Edit: In chat today someone asked me how to set up the Market Movers. Unfortunately you can't do ANY setup. I would love to be able to get rid of low volum
e and true penny stocks from the list, but no way to do it. To set it up, all you have to do is click on the Market Movers button shown in the picture below. Hope this helps.
Monday, June 2, 2008
Chat Room Rocking Again!
Nice to see so many new people here!
We used to have 30-40 peeps everyday, but what with Muddy on hiatus everyone disappeared. As most of the chat regulars here know, I have been very sick for the past few months and that has taken its toll on both of us. We are just trying to get our life back and hopefully we can get things in full swing again. Thanks go out to 13th, Muddy's (and my friend) for helping out. He and Muddy have known each other a long time and 13th's calls are right on the money.
Nice to see people getting the "red floater" thing for example, and great that 13th posted all of the methods we use in one post. Muddy is generally too lazy to post that much!
Only gripe I have dudes, you both gotta stop using me as your secretary to post the frigging charts!
We used to have 30-40 peeps everyday, but what with Muddy on hiatus everyone disappeared. As most of the chat regulars here know, I have been very sick for the past few months and that has taken its toll on both of us. We are just trying to get our life back and hopefully we can get things in full swing again. Thanks go out to 13th, Muddy's (and my friend) for helping out. He and Muddy have known each other a long time and 13th's calls are right on the money.
Nice to see people getting the "red floater" thing for example, and great that 13th posted all of the methods we use in one post. Muddy is generally too lazy to post that much!
Only gripe I have dudes, you both gotta stop using me as your secretary to post the frigging charts!
Sunday, June 1, 2008
I'M GONNA TRY
...to put everything that I do to prepare for the next trading day, the scans I run and the different styles I use to chose stocks to trade both long and short.
No doubt I will forget a few things and will update this post as I remember different things.
I'm gonna try to get it all in this 1 post because the last month I've been asked by quite a few a bunch of questions regarding my trading style.
Please note that very few of these ideas are mine.
Most have come from Muddy and his blog.
It took me many months but I think I'm on the track for a very bright trading future, thanks to him.
First, every weekend I run the top 40 dayrangers from last week. These are great to watch for green to red or red to green.
The stockfetcher scan:
"show stocks where the average day range(10) is above 8 percent and close price is between 1 and 10 and volume is above 300000."
With this scan I have a column added ADR(30) and I rank the top 40 in order top to bottom highest ADR(30).
For next week the list is:
DCR HYHY FPP LNG SSBX PFB WCI XRIT YTBLA TPLM SYNM KIRK SPF UNCL RTK ROIAK ICOG MMPI LCC TGC PEIX DCGN EEE UAUA XJT ENT QTWW KYUS NWA BSHF DSUP GFG CPSL BCON RCH EGR EBHI AKNS ATSG LGND
Next I scan for stocks over 8% gain from yesterday,this I run every night. This scan is long biased as the stocks may have more in them to run another day or two.
The scan:
"show stocks where close gained more than 8 percent over the last one day and price is between 1 and 20
average day range is above 3
Mondays list:
HYHY WCI KIRK UNCL ROYL EGR SWTX LGND PTEK CALC NCOC GLOB DGLY LLNW DPDW MERX MAG FRPT ALLI VITA NSU TRR JUPM ITI OZN QBIK COOL VVTV QUIK IDIX NENG EXAS HGRD TGX PLX SLTN FIRE VG SHFL MRVL
Next I scan for over 15% gainers over the last 2 days. This is run nightly too and is short biased.
show stocks where close gained more than 15 percent over the last 2 days and price is between 1 and 20
average day range is above 3
Mondays list:
HYHY SSBX UNCL MMPI DSUP PCSV EGR SWTX KOSN LGND TRX PTEK TRMP MAG FRPT ALLI TRR ITI QUIK ULBI HGRD TGX PLX FIRE SHFL MRVL TRIB WIND MESA GNTA NEXC HSOA GNLK SNUS CHTR SPSN SLTN QBIK COOL NENG
Next I run the The Combo scan which is stocks that have run the highest amount of times 10 to 19% in the last 100 days ranked in order of highest times to lowest times run. This is run on the weekend too as the watches change little from day to day. This scan is long biased.
On Stockfetcher.com it's known as the RunForestRun scan.
I then cherrypick the ones over 9% in the ADR(30) column.
EDIT:At the time of this post the average ADR(30) was lower than the average ADR(30)than now at the date of this edit,2/17/09.
Therefor I now use ADR(30) 12% and above to cherrypick.
Thus the name Combo, combo of the RunForestRun scan ( found on Stockfetcher) and Muddys high ADR(30).
Here's the SF code for the scan:
close is between 1 and 15
average volume(90) above 50000
average volume(10) above 250000
offset is 0
set{volcnt, count(volume above 50000, 100) }
set{volzero, count(volume equal 0, 100) }
set{x1, high - open}
set{Long_Profit, x1/open }
set{C1A, count(Long_Profit > .04 , 100)}
set{C2A, count(Long_Profit > .09, 100)}
set{C0010, C1A - C2A}
set{D1A, count(Long_Profit > .09 , 100)}
set{D2A, count(Long_Profit > .19, 100)}
set{D1020, D1A - D2A}
set{E1A, count(Long_Profit > .19 , 100)}
set{E2A, count(Long_Profit > .29, 100)}
set{E2030, E1A - E2A}
set{F1A, count(Long_Profit > .29 , 100)}
set{F2A, count(Long_Profit > .39, 100)}
set{F3040, F1A - F2A}
set{G1A, count(Long_Profit > .39 , 100)}
and add column daychg2
and add column C0010 {4_9}
and add column D1020 {10_19}
and add column E2030 {20_29}
and add column F3040 {30_39}
and add column G1A {40+}
and add column C1A {ttl}
sort column 6 descending
Here's this weeks watches:
SPF SYNM QTWW ABK DCR GETG ICOG UNCL RTK MBI XJT FBR NYNY FBTX EEE MMPI BDCO PKT FTWR KUN FPP ENT PFB KOG HDSN TNRO IMB WCI SSN ROIAK LGDI GFG ROYL HDY JAZ HEV GRZ NBF YTBLA LCC
Next I scan for red candles at, or even better, out of the UBB (called floaters). This of course is run nightly and is short biased. The red floater is often the kiss of death imo.
I use this for watches to short in addition to watching those to short
from the 15%+ gains in 2 day scan mentioned above. I always watch the ones with a date offset of 1 also cause these tend to go down pretty nice over a few days period.
Here's the scan:
stocks where close is above upper bollinger band(20) and close is below open and price is between .5 and 20 and volume is greater than 200000
offset is 0
Mondays watches:
WTSLA UFS CWTR COCO CKR CMGI SINO SCS NSIT STSI HRZ RDEN ITI TRMP PCSV SMRT MMSI CYBX TMM
Then I scan for the top 120 RunForestRun stocks for next week. You really need not do this but since I use 3 monitors, ONE IS ALWAYS RUNNING THE SCOTT SCROLLING HOD LIST, I can watch a bunch of stocks in seconds by flipping fast from watchlist to watchlist.
And then the morning an hour before open I begin loading the Pre-market leaders from Interactive Brokers onto a watchlist as possible long/short opportunities.
It's not as many watches as you might think because many of the stocks are on multiple lists.
Ok, now some of my thoughts on what is important to me for successful trading.
1. I can not live without the scrolling Scott hod lists.
Muddy showed me how it was possible to get 20,30,40,even over 50% profits in minutes to a few hours using this. Last week I caught MESA and LGND almost at the start of their runs.
Never had them on any lists,only saw them on the hod list,which brings me to this.......
2. KNOWING former runners and stocks that have hit these scans I run more than normal stocks do. Both MESA and LGND I knew from that way.The only way to get them in your head is to study each nights scans and either write down multiple repeaters or try to remember them.
Watching hours of scrolling hod list helps a bunch too.
3. I like to trade around even dollar marks for under $10 stocks plus .50 marks for the $3 and unders.
4. I really watch the "late hits" that appear on the pre-market leaders board, the ones in the 20 minutes before the opening bell. Many of these run longer than the ones that had been on it since 8 am EST as West coasters tend to wake up late:).
5. I really like the ones I scan for for the "red to green" and "green to red" reversal.
Red to green means going from negative to positive on the day and vice versa.
Since almost all my scans include high dayrangers I think you can see why.
6. If I can I really like to daytrade the lower float stocks.
7. I also like to trade lower volume new 52 week high stocks.
8. I love finding pump and dumps and fluff press release and/or paid promoter stocks.
You need to watch like a hawk cause when they come down they can fall super fast without warning,if you can catch the start of the fall they make great shorts.That's what I'm always looking for,the short opportunity which brings me to.....
9. I like trading with IB,not just for low commish but mainly because you can short almost any stock there regardless of price plus their premarket leader list rocks, it shows in order the amount of time the stock has been on the list,you can catch the real late hits in the last 20 minutes real easy this way.
10. Besides Muddy's blog I read only one other ( since I daytrade I really don't care which direction these other bloggers think the market is going ) Its http://www.timothysykes.com/ for pennystocking and shorts.
11. IMO Stockfetcher is the best $9 a month you can spend if you are looking for a screening service.
12. Both Muddy and I have been in the mutual fund CGMFX for a long time, good place we've found to park trading profits.
13. I like to watch for the high gap open stocks,that are NOT due to earnings, for a fade between 10 am and 10:45 especially.
14. Intraday chartwise I really like the 10/60 sma cross for entries and exits. I used it a bunch when I first started not so much now cause I trust myself a lot better knowing the symbols.
Do a search for "10/60" in the search blog box to see some charts .
15. Daily chartwise I like the "Muddy zone" on UBB pullbacks and "waiting for green " with these to bounce out of this zone.Do search blog box for "Filters I Use". Muddy explains how to use this zone.He recently has widened the zone a bit to EMA10/SMA30 for better visability.
I like to follow stocks like ROYL that had a white candle being pierced by the UBB on a vol increase,see ROYL chart 5/2/08, 5/13 the bottom shadow went right into this zone,the next day it went green at 3.32,it's now at 5.79, ironically bouncing off the EMA twice during this run.
16. Also daily chartwise I like to use RSI(2) as an indicator of STRENGTH when the white candle is being pierced by the UBB. I like to see 90+ RSI2 in this situation,the nearer to 100 the better.
Most look to short these kind and I say they are dead wrong; this is an indicator of a strong stock not a sign of weakness.
Using ROYL again as an example look at RSI2 on its price/vol breakout day 5/2
Its RSI2 that day was 99.62 about as high as it can get!
17. As mentioned in the scans I run, I love to find red candles at the UBB and especially red "floaters" above the UBB. Then I wait for red the next day to go short. As Muddy used to tell me, "Red floaters kill!"
If I think of other tips that might be useful I will update on this post. I hope this will help clarify what I've been taught and how I try to put it into play for the average person just like me.
I feel I have a tremendous edge with this stuff, hope some of you find this helpful.
Edit by Muddy 1/1/09
Here's another filter/scan written by TheRumpledOne,TRO,that I know Mike ran and that I run that I guess Mike forgot to include in his original post.
TRO graciously gave this to me after we had talked about trying to find these.
He has posted his version on Stockfetcher that can be found on the RFR forum thread,3rd page dated 11/15/07 8:44am
The version Mike and I use is a modification showing the highest risk/reward(in our opinion)stocks,ranked in order of total points for 10%+ runs plus ADR(10). This scan is for stocks $1-15. We also run it with price between .20-$1.
The SF code....
/* RUN FOREST, RUN for 1 day 8 pct loss, 2 day 10 pct loss or more */
/* and fails */
set{ DayChg1 , day change}
set{ DayChg2x , close - close 2 days ago }
set{ DayChg2y , DayChg2x / close 2 days ago }
set{ DayChg2 , DayChg2y * 100 }
set{CCb,days(close is above close 1 day ago,100)}
set{CCa,days(close is below close 1 day ago,100)}
set{ClxCl , CCa - CCb}
set{ pick1 , count( DayChg1 below -7.9999 , 1 ) }
set{ pick2 , count( DayChg2 below -9.9999 , 1 ) }
set{ pickx , pick1 + pick2 }
set{ pickx1 , pickx 1 day ago }
set{ pick3 , count( ClxCl below 0 , 1 ) * pickx1 }
set{ pick , pickx + pick3 }
add column DayChg1 {Day1}
add column DayChg2 {Day2}
/* Long Profit Percent Statistics Display */
set{volcnt, count(volume above 1000000, 100) }
set{volzero, count(volume equal 0, 100) }
set{HiOp, high - open}
set{Long_Profit, HiOp/open }
set{B1A, count(Long_Profit > .01 , 100)}
set{B2A, count(Long_Profit > .05, 100)}
set{B0010, B1A - B2A}
set{F1A, count(Long_Profit > .05 , 100)}
set{F2A, count(Long_Profit > .10, 100)}
set{F3040, F1A - F2A}
set{I100, count(Long_Profit > .10 , 100)}
and add column B0010 {1_5}
and add column F3040 {5_10}
and add column I100 {10___}
pick above 0
close is between 1 and 15
average volume(10) above 250000
sort column 10 descending
set{total,I100+average day range(10)}
and add column total
and add column average day range(10)
No doubt I will forget a few things and will update this post as I remember different things.
I'm gonna try to get it all in this 1 post because the last month I've been asked by quite a few a bunch of questions regarding my trading style.
Please note that very few of these ideas are mine.
Most have come from Muddy and his blog.
It took me many months but I think I'm on the track for a very bright trading future, thanks to him.
First, every weekend I run the top 40 dayrangers from last week. These are great to watch for green to red or red to green.
The stockfetcher scan:
"show stocks where the average day range(10) is above 8 percent and close price is between 1 and 10 and volume is above 300000."
With this scan I have a column added ADR(30) and I rank the top 40 in order top to bottom highest ADR(30).
For next week the list is:
DCR HYHY FPP LNG SSBX PFB WCI XRIT YTBLA TPLM SYNM KIRK SPF UNCL RTK ROIAK ICOG MMPI LCC TGC PEIX DCGN EEE UAUA XJT ENT QTWW KYUS NWA BSHF DSUP GFG CPSL BCON RCH EGR EBHI AKNS ATSG LGND
Next I scan for stocks over 8% gain from yesterday,this I run every night. This scan is long biased as the stocks may have more in them to run another day or two.
The scan:
"show stocks where close gained more than 8 percent over the last one day and price is between 1 and 20
average day range is above 3
Mondays list:
HYHY WCI KIRK UNCL ROYL EGR SWTX LGND PTEK CALC NCOC GLOB DGLY LLNW DPDW MERX MAG FRPT ALLI VITA NSU TRR JUPM ITI OZN QBIK COOL VVTV QUIK IDIX NENG EXAS HGRD TGX PLX SLTN FIRE VG SHFL MRVL
Next I scan for over 15% gainers over the last 2 days. This is run nightly too and is short biased.
show stocks where close gained more than 15 percent over the last 2 days and price is between 1 and 20
average day range is above 3
Mondays list:
HYHY SSBX UNCL MMPI DSUP PCSV EGR SWTX KOSN LGND TRX PTEK TRMP MAG FRPT ALLI TRR ITI QUIK ULBI HGRD TGX PLX FIRE SHFL MRVL TRIB WIND MESA GNTA NEXC HSOA GNLK SNUS CHTR SPSN SLTN QBIK COOL NENG
Next I run the The Combo scan which is stocks that have run the highest amount of times 10 to 19% in the last 100 days ranked in order of highest times to lowest times run. This is run on the weekend too as the watches change little from day to day. This scan is long biased.
On Stockfetcher.com it's known as the RunForestRun scan.
I then cherrypick the ones over 9% in the ADR(30) column.
EDIT:At the time of this post the average ADR(30) was lower than the average ADR(30)than now at the date of this edit,2/17/09.
Therefor I now use ADR(30) 12% and above to cherrypick.
Thus the name Combo, combo of the RunForestRun scan ( found on Stockfetcher) and Muddys high ADR(30).
Here's the SF code for the scan:
close is between 1 and 15
average volume(90) above 50000
average volume(10) above 250000
offset is 0
set{volcnt, count(volume above 50000, 100) }
set{volzero, count(volume equal 0, 100) }
set{x1, high - open}
set{Long_Profit, x1/open }
set{C1A, count(Long_Profit > .04 , 100)}
set{C2A, count(Long_Profit > .09, 100)}
set{C0010, C1A - C2A}
set{D1A, count(Long_Profit > .09 , 100)}
set{D2A, count(Long_Profit > .19, 100)}
set{D1020, D1A - D2A}
set{E1A, count(Long_Profit > .19 , 100)}
set{E2A, count(Long_Profit > .29, 100)}
set{E2030, E1A - E2A}
set{F1A, count(Long_Profit > .29 , 100)}
set{F2A, count(Long_Profit > .39, 100)}
set{F3040, F1A - F2A}
set{G1A, count(Long_Profit > .39 , 100)}
and add column daychg2
and add column C0010 {4_9}
and add column D1020 {10_19}
and add column E2030 {20_29}
and add column F3040 {30_39}
and add column G1A {40+}
and add column C1A {ttl}
sort column 6 descending
Here's this weeks watches:
SPF SYNM QTWW ABK DCR GETG ICOG UNCL RTK MBI XJT FBR NYNY FBTX EEE MMPI BDCO PKT FTWR KUN FPP ENT PFB KOG HDSN TNRO IMB WCI SSN ROIAK LGDI GFG ROYL HDY JAZ HEV GRZ NBF YTBLA LCC
Next I scan for red candles at, or even better, out of the UBB (called floaters). This of course is run nightly and is short biased. The red floater is often the kiss of death imo.
I use this for watches to short in addition to watching those to short
from the 15%+ gains in 2 day scan mentioned above. I always watch the ones with a date offset of 1 also cause these tend to go down pretty nice over a few days period.
Here's the scan:
stocks where close is above upper bollinger band(20) and close is below open and price is between .5 and 20 and volume is greater than 200000
offset is 0
Mondays watches:
WTSLA UFS CWTR COCO CKR CMGI SINO SCS NSIT STSI HRZ RDEN ITI TRMP PCSV SMRT MMSI CYBX TMM
Then I scan for the top 120 RunForestRun stocks for next week. You really need not do this but since I use 3 monitors, ONE IS ALWAYS RUNNING THE SCOTT SCROLLING HOD LIST, I can watch a bunch of stocks in seconds by flipping fast from watchlist to watchlist.
And then the morning an hour before open I begin loading the Pre-market leaders from Interactive Brokers onto a watchlist as possible long/short opportunities.
It's not as many watches as you might think because many of the stocks are on multiple lists.
Ok, now some of my thoughts on what is important to me for successful trading.
1. I can not live without the scrolling Scott hod lists.
Muddy showed me how it was possible to get 20,30,40,even over 50% profits in minutes to a few hours using this. Last week I caught MESA and LGND almost at the start of their runs.
Never had them on any lists,only saw them on the hod list,which brings me to this.......
2. KNOWING former runners and stocks that have hit these scans I run more than normal stocks do. Both MESA and LGND I knew from that way.The only way to get them in your head is to study each nights scans and either write down multiple repeaters or try to remember them.
Watching hours of scrolling hod list helps a bunch too.
3. I like to trade around even dollar marks for under $10 stocks plus .50 marks for the $3 and unders.
4. I really watch the "late hits" that appear on the pre-market leaders board, the ones in the 20 minutes before the opening bell. Many of these run longer than the ones that had been on it since 8 am EST as West coasters tend to wake up late:).
5. I really like the ones I scan for for the "red to green" and "green to red" reversal.
Red to green means going from negative to positive on the day and vice versa.
Since almost all my scans include high dayrangers I think you can see why.
6. If I can I really like to daytrade the lower float stocks.
7. I also like to trade lower volume new 52 week high stocks.
8. I love finding pump and dumps and fluff press release and/or paid promoter stocks.
You need to watch like a hawk cause when they come down they can fall super fast without warning,if you can catch the start of the fall they make great shorts.That's what I'm always looking for,the short opportunity which brings me to.....
9. I like trading with IB,not just for low commish but mainly because you can short almost any stock there regardless of price plus their premarket leader list rocks, it shows in order the amount of time the stock has been on the list,you can catch the real late hits in the last 20 minutes real easy this way.
10. Besides Muddy's blog I read only one other ( since I daytrade I really don't care which direction these other bloggers think the market is going ) Its http://www.timothysykes.com/ for pennystocking and shorts.
11. IMO Stockfetcher is the best $9 a month you can spend if you are looking for a screening service.
12. Both Muddy and I have been in the mutual fund CGMFX for a long time, good place we've found to park trading profits.
13. I like to watch for the high gap open stocks,that are NOT due to earnings, for a fade between 10 am and 10:45 especially.
14. Intraday chartwise I really like the 10/60 sma cross for entries and exits. I used it a bunch when I first started not so much now cause I trust myself a lot better knowing the symbols.
Do a search for "10/60" in the search blog box to see some charts .
15. Daily chartwise I like the "Muddy zone" on UBB pullbacks and "waiting for green " with these to bounce out of this zone.Do search blog box for "Filters I Use". Muddy explains how to use this zone.He recently has widened the zone a bit to EMA10/SMA30 for better visability.
I like to follow stocks like ROYL that had a white candle being pierced by the UBB on a vol increase,see ROYL chart 5/2/08, 5/13 the bottom shadow went right into this zone,the next day it went green at 3.32,it's now at 5.79, ironically bouncing off the EMA twice during this run.
16. Also daily chartwise I like to use RSI(2) as an indicator of STRENGTH when the white candle is being pierced by the UBB. I like to see 90+ RSI2 in this situation,the nearer to 100 the better.
Most look to short these kind and I say they are dead wrong; this is an indicator of a strong stock not a sign of weakness.
Using ROYL again as an example look at RSI2 on its price/vol breakout day 5/2
Its RSI2 that day was 99.62 about as high as it can get!
17. As mentioned in the scans I run, I love to find red candles at the UBB and especially red "floaters" above the UBB. Then I wait for red the next day to go short. As Muddy used to tell me, "Red floaters kill!"
If I think of other tips that might be useful I will update on this post. I hope this will help clarify what I've been taught and how I try to put it into play for the average person just like me.
I feel I have a tremendous edge with this stuff, hope some of you find this helpful.
Edit by Muddy 1/1/09
Here's another filter/scan written by TheRumpledOne,TRO,that I know Mike ran and that I run that I guess Mike forgot to include in his original post.
TRO graciously gave this to me after we had talked about trying to find these.
He has posted his version on Stockfetcher that can be found on the RFR forum thread,3rd page dated 11/15/07 8:44am
The version Mike and I use is a modification showing the highest risk/reward(in our opinion)stocks,ranked in order of total points for 10%+ runs plus ADR(10). This scan is for stocks $1-15. We also run it with price between .20-$1.
The SF code....
/* RUN FOREST, RUN for 1 day 8 pct loss, 2 day 10 pct loss or more */
/* and fails */
set{ DayChg1 , day change}
set{ DayChg2x , close - close 2 days ago }
set{ DayChg2y , DayChg2x / close 2 days ago }
set{ DayChg2 , DayChg2y * 100 }
set{CCb,days(close is above close 1 day ago,100)}
set{CCa,days(close is below close 1 day ago,100)}
set{ClxCl , CCa - CCb}
set{ pick1 , count( DayChg1 below -7.9999 , 1 ) }
set{ pick2 , count( DayChg2 below -9.9999 , 1 ) }
set{ pickx , pick1 + pick2 }
set{ pickx1 , pickx 1 day ago }
set{ pick3 , count( ClxCl below 0 , 1 ) * pickx1 }
set{ pick , pickx + pick3 }
add column DayChg1 {Day1}
add column DayChg2 {Day2}
/* Long Profit Percent Statistics Display */
set{volcnt, count(volume above 1000000, 100) }
set{volzero, count(volume equal 0, 100) }
set{HiOp, high - open}
set{Long_Profit, HiOp/open }
set{B1A, count(Long_Profit > .01 , 100)}
set{B2A, count(Long_Profit > .05, 100)}
set{B0010, B1A - B2A}
set{F1A, count(Long_Profit > .05 , 100)}
set{F2A, count(Long_Profit > .10, 100)}
set{F3040, F1A - F2A}
set{I100, count(Long_Profit > .10 , 100)}
and add column B0010 {1_5}
and add column F3040 {5_10}
and add column I100 {10___}
pick above 0
close is between 1 and 15
average volume(10) above 250000
sort column 10 descending
set{total,I100+average day range(10)}
and add column total
and add column average day range(10)
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