So this was a slow couple of weeks for me. I was out of the country on vacation for most of that period, so I was trying not to do much trading. Also, I don't like to do a whole lot in the heart of earnings season, because the market can often become choppy from one day to the next based on how the reports are each day.
First an update on the positions (CENX & MNTA) I mentioned in the previous Trades of the Week.Read More ➞
I'm going to try to do a post like this at least every other week. My goal here is to show a bit of my process and the scans I use to find these trading candidates. They certainly won't be the best trades one could have possibly made, it will just highlight those I found and chose to take.
First up is CENX. This stock has been on my watchlist for a few weeks because I traded it in December. I bought above that consolidation pattern at $16.14 (with a stop loss under that rectangle at 15.30 -- a great example of a classic Darvis Box or a flag) and sold it on December 28th at 19.82. So my initial risk (1R) (read more about R and R multiples here) was 84 cents per share, so I made 4.4 times my initial risk (4R). I liked how the stock was acting, so I kept an eye on it by adding it to one of my watchlists.Read More ➞
For a long time I've wanted to make it easier to keep my SwingTradeBot portfolios in sync with my actual brokerage portfolios. Today I've come one step closer to that goal. I just released a new feature which allows you to import stocks into a portfolio from a CSV file. There's now an 'Import Stocks' button next to the portfolio's name:
Clicking that button will open a pop-up which will allow you to select the CSV file to upload.Read More ➞
I apologize to those of you who were met with errors*** and/or the "down for maintenance" message on Thursday night. The site has been experiencing some performance issues, exacerbated by the changes I made to the way things are stored in my database about a month ago. As a result of those changes, the site is storing a LOT more data. In addition, the introduction scanning across date ranges has but more load on the database. The other new feature, displaying a page full of charts, puts even more of a workload on the database.Read More ➞
I just released a new feature which will be a huge time saver when looking through scan results. There's a new option which allow you to see up to 20 charts at a time. It looks like this:Read More ➞
Scanning for a given pattern / signal over a range of dates is a feature I've wanted for a long time. A nice side-effect of the recent change I made to the way things are stored in the site's database is that it's now much easier for me to build that capability. Over the last couple of weeks I received a few requests for adding a date range to the scans. So starting today paid subscribers will be able to run scans across a date range. You'll see that there's now an end date as part of the search / filter criteria.Read More ➞
I had a really good email exchange with somebody (Jason) the other day. He shared with me how he incorporates SwingTradeBot's data into his research process. Here's part of our exchange:Read More ➞
I've added a new "Articles & Podcasts" section to the site. Throughout the day it pulls in new content from several sources I've selected (some of my favorite sites and podcasts). It'll will contain a mix of stock-specific comentary as well as more general trading information / education. I'll also be manually posting links from time to time. (You can find the link to it in the site's navigation menu under Research > Resources > Articles & Podcasts)Read More ➞
I just had a conversation with somebody who asked me if SwingTradeBot has a mobile (iOS or Android) app. That's a question I've gotten a lot. I understand why people want an app. -- as an iPhone user, I like the convenience & ease of an app and the (hopefully) faster & better interface.Read More ➞
I've been thinking a lot about stocks which have undergone parabolic rises based on (what I consider) a lot of hype and little substance. That's been fueled by where the bulk of my trading profits have come from over the last few months -- shorting those type of parabolic moves. (Some call those stocks "flying pigs".)
For example, I've shorted VERI 3 times after the crash through 60:
OSTK 4 times (breaking even on the first 3 attempts but a nice winner on the 4th)
XNET was the biggest short-term winner I've had this year...
— Michael Seneadza (@TraderMike) November 29, 2017
So after that XNET success I really started thinking "I need a way to find these kind of movers quickly." So I'm thinking about adding a "Gone Parabolic" scan. I have some ideas on how to do it. Some criteria:
- Must be above the Upper Bollinger Band
- Must be trending up very strongly (can use ADX and Directional Movement for that determination)
- Must be up over 70% in the last few months
- Must have Overbought Stochastic (almost a certainty if the above are all present)
I'll be playing around with that over the weekend to see what I can come up with. But in the mean time, a pretty good approximation is to use the Percentage Gainers scan, looking at the last 90 days and checking the charts of those stocks which are up more than 70% over that period.
Of course with any of these scans, you'd want to investigate why the stock has been rallying and then decide a course of action.
*** Note that shorting these kind of moves is not for the faint of heart! You can get slaughtered if you jump in too early. So if you want to wade into these waters, be sure to have a well thought out plan and control your risk (scaling in may help).Read More ➞