Lately, I have been thinking that with all the stocks available to trade each day, we are surely missing many good setups, by only focusing on the IBD50, FANG or leading stocks. Even scanning the “Most Active” lists guarantees only so much. Most of the time, the stocks have already made a huge move to be on the most active list to begin with.
In this case, we were looking for unorthodox scan parameters, that were more fundamental than technical. To put it another way, I fed the scan engine with fundamental parameters then looked at the resulting charts for familiar, trade-able patterns. Below are a couple of candidates that deserve further scholarship and study. We’ll look for candidates or competitors that match IBD standards as an example.
Hint #1 – Find stocks wherein management owns more than 30%/50% of shares outstanding. It makes sense that stock ownership by insiders or lack thereof, should be something of interest to us as traders.
Hint #2 – Institutional purchases and activity is bullish. If institutions are buying it means they’ve done their homework.
Hint #3 – EPS growth quarter to quarter greater than 30%. We’re looking for companies that are growing, along with 1 and 2 above.
Then we simply scan the candidates for bullish patterns. We will need to do this daily/weekly since some of the better candidates may be experiencing a pullback.
While the stocks below are not recommendations, the process does make you think. What if we find one good setup to trade each week? It’s worth our time and effort.
Imagine running this scan on Wednesday and finding this setup on RDCM? Sure, its a thinly traded stock, but we would normally look at the competitors and run RDCM through IBD “Stock Checkup” feature anyway. Still Radcom was and is a pretty chart. It fits all the criteria for a 10e/STO/MACD setup for sure.
Checking the competitors to RDCM with the IBD “Stock Checkup” feature yields Tucows (TCX). We’ve traded this stock before. The triangle pattern looks pretty impressive, even if it takes a few days to break out. Price is above the 9/20ema, with RSI above 50.
SYNC popped on this scan as well. This candidate was an IPO several years ago, as we can see on the monthly chart. Sure it’s inexpensive, but the pattern is bullish none-the-less. I have no idea if this pattern will yield the results it suggests, but price looks ready to break out into a massive Kirby. Remember the Kirby on INFI at 1.75? It’s up 100% now.
The weekly looks pretty interesting as well. No overhead supply is my immediate thought. Bollinger bands will probably open pretty quickly if this acceleration lasts.
I really love clean charts like OMAB.
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., through its subsidiaries, develops, operates, and maintains airports in Mexico. It also operates NH T2 Hotel in Terminal 2 of the Mexico City International Airport. The company operates 13 international airports in Monterrey, Acapulco, Mazatlán, Zihuatanejo, Ciudad Juárez, Reynosa, Chihuahua, Culiacán, Durango, San Luis Potosí, Tampico, Torreón, and Zacatecas cities.
To reiterate, these are not recommendations. I am only pointing out that, in changing our approach and criteria for todays scans, from purely technical parameters to fundamental, it produced some interesting candidates. Expect more to come. About a dozen charts look good, though I only had time to show you these few……..
Taking the wife out to dinner.
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.