The market's set for a good sized pop on the open thanks to the cease fire in the Middle East. In pre-market trading QQQQ is up 0.79% and SPY is up 0.5%. The Nasdaq and S&P 500 both flased stochastic buy signals on Friday so this is a good place for the bulls to mount a rally attempt. However, we're still range-bound and this gap will likely bring out some sellers. I'm hoping this doesn't turn into one of those days where the market has a furious 15 or 30 minute rally and then just drift for the rest of the session...
Potential swing trades:
See one of the recent 'Chart Reading' posts for some potential swing candidates.
Potential day trades:
(From Briefing.com)
Gapping Down
CVTX -6.7% (stock offering), NVAX -6.8% (reports Q2), MSTR -3.3% (Roth downgrade), ATI -2.2% (Pru downgrade), IHP -1.9% (files 10-Q).
Gapping Up
Gapping up on strong earnings/guidance: BBC +8.1%, BDCO +4.1%, HWCC +15% (light vol 1,000 shares), CLEC +26% (also to merge with Paetec)... Other News: CAL +4.2% (airlines are strong as oil is lower in pre-mkt), AMR +4.2% (same), WFMI +4% (JP Morgan upgrade; also mentioned positively in Barron's), AHO +3.3% (shareholders call for break-up -- FT), HSOA +3.8% (ticking up ahead of Q2 report after the close), ENCY +3.6% (extends late rally on Friday on Thelin news), XNL +3% (extends Friday's 10% move), F +2.7% (Bear Stearns upgrade), PMCS +2.6% (completes review of stock option awards), ASEI +2.5% (positive JMP Sec comments), CIEN +2.4% (BofA upgrade), NTES +2.3%, CYNO +2.3% (positive comments frm Jefferies, says stock extremely undervalued), BOBJ +2.2%, BRCM +1.9%, ADI +1.6%, AKAM +1.3%, CSCO +1.3% (announces it will accelerate network security for US govt)... Under $3: QEE +8% (reports Q2).
Disclaimer & How I use this list
Hi Michael,
Just wondering, with your stochastic formula which has been customized from the default settings, do you change them based on the market behaviour (tight range or trending) or have you found your settings to work well in all conditions?
Stan
Stan,
5,3,3 is a pretty common setting. It *is* rather fast though. No, I don't change the settings for market conditions. Any oscillator will work better in range-bound markets vs. trending ones.