September 26, 2011
Uncategorized
By Geoff Bysshe
Several posts ago I pointed out the SMH (the Semiconductor ETF) was breaking some key upside resistance, and worth keeping an eye on as a measure of potential strength in the Q’s as well as trades in the group. You can find that post here: https://marketgauge.com/?p=4270
The markets have since rallied, and in the case of the Q’s, returned to about the same level as they were trading at the time of the post. So on Friday, I used HotScans to quickly build a list of stock that may be worth trading from the long side if the pull back holds.
Here’s an easy way to scan a specific group of stocks to find the ones that are most interesting. You’ll see from the image below the settings / sorting features I used circled in red. The first thing I did was select a default “Rallying by % Price” scan which you’ll find right below the tabbed navigation at the top of the page. Then I used the setting circled at the bottom of the HotScans table to select only Semiconductor stocks. Finally, I used the links circled at the top of the HS table to resort the result by percentage price move and relative volume.
By doing this I was able to focus on the best performing and/or high volume stocks in the group and then quickly look at the daily charts to look for the pattern I’d like to see. In this case I’m looking for either extraordinary volume patterns or the daily moving averages (10-20-50) turning up and acting as support on this pullback. Here’s the short list I came up with. TXN does not have the moving average pattern I’d like to see but the 10 and 20 are shaping up, the volume was decent on a much stronger move than the SMH and between it and INTC they are 40% of the SMH. So it’s on the list.
SMH
NVDA
RMBS
CRUS
MRVL
MCHP
INTC
TXN
HotScans set up to filter a specific industry group:
