MarketSmith Analysis Tools
MarketSmith’s Growth 250 is a curated list of high-potential stocks delivered to you before they break out. The list is updated every Friday after the market closes, perfect for plotting your trading strategy for the week ahead. Additionally, you’ll see intraday updates every 60 seconds for stocks nearing the pivot area or stocks breaking out to higher territory.
For the past couple of weeks, we have been testing our favorite MarketSmith Research and Analysis Tools for use in our trading room. We set out to track various performance metrics while making some money in the process.
What follows are two stocks that we traded fitting our criteria and style of trading.
California Resources (CRC) – MarketSmith Alert
CRC was already on our radar, as one of our members, aka @pizzamaker, noted option activity on the evening “before” earnings were released. He’s an invaluable asset for options traders in the trading room.
California Resources (CRC) broke out Friday 05-04-2018 on heavy volume when the stock opened for trading at 27.58. We received a breakout alert shortly after the Opening Bell. After 18 days of trading, the stock is up 37% and +5.50 for the week. Tres bien!
Technically speaking, RS line (99) is rising, showing its relative strength compared to the S&P500. Funds own 50% of the stock. Volume confirms institutions were accumulating shares. The stock formed a handle. The depth of the cup is approximately 12 points so we were looking for 37 (+/-) as a target this week. Winner!
ARCB – MarketSmith Breakout Alert
The ARCB alert came early Friday, at 9:55 AM, so we used a “ToD” strategy for entry, targets, and stops. “ToD” is an acronym for “Trade of the Day.”
Another cool feature is MarketSmith audio alerts. The software sent us an alert to the MarketSmith mobile app seconds before the email.
Here’s what the 60 minute chart printed on Friday.
Several members in the trading room benefited from the “LIVE” trade alert during the morning broadcast. Note at midday the stock was nearing an apex, what we commonly call an “ABCD” pattern, trading at the “A” pivot, at the time of day where price action usually fades. Time to take profits (+8) if you were day trading this breakout alert. Winner!
There were dozens of examples like ARCB and CRC, which triggered alerts last week. For the sake of brevity, we’ll keep the list short.
Now let’s look at a few stocks that might break above pivot highs next week. Once again, we’ll cull the MarketSmith Growth 250 list for ideas.
MarketSmith Growth 250 Breakout Alerts for the Week Ahead
“Stock Ideas” is a convenient feature at the top of each chart window, with a direct link to the following screen:
Clicking the MarketSmith Growth 250 feeds the user the following list of stocks. I’ve truncated the list with only 5 candidates to illustrate a point. Click the image to enlarge.
Weight Watchers (WTW) is a stock we like to trade on breakouts, so let’s take a look.
Technically speaking the stock is basing. It’s tested the breakout zone twice on above-average volume and its relative strength to the S&P500 illustrate how well it is performing relative to the big-cap index. It scores a 97, with room to the upside. In addition, it’s trading in the top of its range on an earnings beat noted just above the volume graph. (+999%).
While there are no guarantees that WTW will break out and perform like ARCB or CRC, it does warrant our attention. We’ll set up a trade and save it for use if and when we the alert triggers this week.
Institutions Drive the Market! MarketSmith Tracks Their Footprints with Breakout Alerts.
While we could spend hours researching to find the best technical setups, with the best earnings and sales potential (ie; fundamentals), we decided to give MarketSmith a go; so far it hasn’t disappointed this trader nor our members. Check it out for yourself.
Disclaimer: Do your Own Research
Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise.
We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.