Looking through the Watchlist
I wanted to spend tonight looking through the watchlist and highlighting several setups. Although Friday was some what volatile in the overall indexes, several stocks on the watchlist continued to push higher or setup stronger technical patterns.
As I've mentioned in the past, I don't always take every trade that breaks out on the watchlist. The portfolio portion of Trade Anatomy is meant to represent trading scenarios that I prefer for myself. Like me, you are also faced with the challenge to pick and choose what goes into your portfolio. Sometimes, the stocks that make it into the portfolio perform extremely well, while other times not so well.
There will be times that other stocks from the screens perform better than some of the portfolio holdings. The key is to make sure that a good portion of the best performers make it onto the watchlist and then into your portfolio.
To make sure this happens, the first step is consistency in your trade setups. As you look through the watchlist, make note of how many have long weekly and monthly chart setups. The majority of the watchlist stocks will be on their first or second leg of a potentially bigger move. Rarely will you see a stock that has been trending for several years and has distanced itself from a proper base.
Below are several setups to continue to watch or trade.
Below are a few examples from the watchlist that are also displaying a strong monthly pattern setup. Notice how they are just now switching their longer term trends.
The watchlist and our trailing stops will be updated later this evening and ready for download.
Have a great night,