Category: accumulation
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Today’s Entry: GS
I entered GS today. Nice triangle pattern formed post trend breakout. Nice volume within triangle as well.
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Today’s Entry: STP
I entered STP today on weakness. The stock has shown strong strength in relation to the market, and shows a strong volulme pattern on the recent move up. My target is the September high.
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AIG is a Great Low Risk Setup
AIG’s volume pattern shows that it is under accumulation. This pullback offers a low risk setup. If entered around $37, with a stop under the 20 day moving average at $34.50 and target near the recent high at $50, we are looking at a 6:1 reward ratio. If you find…
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CX Chart
CX has a great looking chart that shows strong accumulation (volume pattern) and is breaking out to highs. The stock is extended, so I will wait for a pullback for entry.
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Today’s Trades: SKF and SRS
I used today’s strength to enter two bearish focus list stocks today, SKF (financials) and SRS (real estate). Both are inverse shorts. Note that strong volume pattern during the price consolidation range. There is still room to pullback, so I used small position size. 300 shares SKF at $44.11 400…
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Strategy Session: Using Distribution Patterns to Predict Trends and Trend Failure
The second most important aspect of my trading strategy (behind support and resistance) is using volume to classify stocks that are under accumulation and distribution. Distribution is under way when, over a period of time, stocks show higher volume on down days and lower volume on up days. In a…
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On the Radar: Residentials
Residential Real Estate and homebuilders is one of the hottest sectors right now, showing strong accumulation, price patterns and relative strength. One of my favorites is DHI. The chart speaks for itself . . .
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A Crappy Picture That Clarifies the Ideal Volume Pattern
This picture I created ain’t pretty, but it does a good job of showing the type of volume pattern I look for during bottom formations:
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Chart: DIG
There’s a lot to like about the DIG chart: 1. Postive RSI divergence 2. Successful test of bottom support 3. Long tail price bar at support 4. Oversold stochastic turning up 5. Strong obv and volume action
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The FXI Answer
I left my analysis of FXI open ended in the last post and a few of you seem to think I was bearish! The pattern is in fact quite bullish, and points to a bottom formation. Compare the current volume pattern to that during the top and bear run. For…
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China’s Chart Give’s a Clear Answer
The FXI weekly chart is quite illuminating and a good example of the importance of volume. What does the current volume pattern tell us? Compare to the previous volume patterns during the top and bear run, and the answer is clear . . .
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Education Stocks Showing Accumulation and Relative Strength
A few sectors asserted themselves during last week’s market up move. Education stocks are on fire and showing buying interest from the big boys. While most stocks are coming off bottoms and nearing resistance levels, education stocks are near recent highs. Focus list stocks include EDU, DV, CPLA and APOL.
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The Line
I could not have imagined the QLD trade working better than it has. I took partial profits at $72.88 today (entered at $67.88, as noted in the free trial of the Trade Report) for a $1250 gain (+7.3%). I’ve moved my stop on the remaining position up to my entry…
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Trade Entry: TRA
I bought 500 shares of TRA at $53.12. Setup: A combo platter of a breakout and trend-pullback and entering within a forming high and tight flag. I expect a continuation of the trend. Great volume pattern and RSI and stochastics confirm price highs. The stock is under accumulated here. Risk:…
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Trade Portfolio Charts: GTLS and DZZ
GTLS is an earnings breakout play that has shown accumultion as it consolidates the breakout move. A key day was early last weak when it confirmed the hammer the stock printed at the breakout point. The RSI and OBV trends are positive and the volume pattern has favored up days.…
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Homebuilders are Hard to Ignore
It’s tough to ignore the strong move in residential construction, aka, homebuilders. While my head tells me to stay away, the charts tell me otherwise. For months I have been using bounces in the sector to reload shorts, but not this time. There is something different about this bounce. Take…
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Analyzing Today’s Trade: WMS
I bought 400 shares of WMS at $39.05, based on my breakout-pullback trading setup. The stock broke on strong volume earlier this month, while pulling back on diminishing volume. Today’s confirmation candle at two tiered support (20 day moving average and price) provide the entry signal. Also note that OBV…
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Is the Market Speculator Really Long a Homebuilder?
I’ve been very busy, so I haven’t had a chance to update my trades. As stated in the comments section this morning, I unloaded a bunch of shorts and entered a few longs. I would like to add some more shorts on bounce. My bias is still to the down…
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Anatomy of a Broken Momentum Stock – Bad Signs For Market
I am seeing a lot of momentum stocks which have broke down below their trend lines. CPLA is a good example. During the trend, the stock has continually bounced off either the 20 day or 50 day moving average. Just as important, down moves have not shown much distribution. That’s…
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Earnings Breakout Chart: EDU
EDU broke out from a cup and handle formation and is currently digesting gains. Notice the positive volume trend, which signals that big players are accumulating the stock. I am looking for a breakout-pullback play, and will look to enter on a pullback to the $70-72 range.
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Strong Accumulation Pattern in NILE
One of the most important factors I look for in selecting a stock to trade is a stong accumulation pattern. NILE is a good example of a stock under accumulation. Take note of the strong volume on up days versus the low volume down days. This is our first que…
Paul J Singh 