[theory6453]

Went long in GGAL this week as it looks to be entering Stage 2A. Picked this up from Isa's Daily Breakout charts from mid-August. Broke above resistance in the $6.50 range and pulled back a little last week but held tight at it's new support. Nice spike in average volume since the breakout and relative performance popped above the zero line.

Has been basing for over a year and Ichimoku Clouds show that it has cleared any overhead resistance levels. Financials sector and Banks sub-group could also be heading into Stage 3 so that could potentially be a concern at this point. Also, the MA is trending upwards but still a little flatter than I would probably like to see. Hoping that will continue upwards in the next few weeks. My current stop is just under 5 bucks.

***Sorry if this seems to have posted multiple times. I was trying to post a New Reply regarding GGAL and a 2nd separate response to a completely different post and it kept combining the two. I'll save my 2nd comment for later.

[isatrader]

JOE (St Joe) in the Real Estate Development sector ($DJUSEH) is another potential Stage 4A for the watchlist. Attached is the weekly chart and the relative performance chart versus it's major and sub-sectors.

[isatrader]

***Sorry if this seems to have posted multiple times. I was trying to post a New Reply regarding GGAL and a 2nd separate response to a completely different post and it kept combining the two. I'll save my 2nd comment for later.

It's done that to me a few times, but is just a glitch in the forum software I use that they haven't ironed out yet. Should be working fine again now for you that I've done another post in the thread after yours.

[theory6453]

Did you like RMTI? If not, could you explain why. I know, it did not form a base for long.

It had a very big volume move from it's lows (possible short squeeze) and has formed a new swing high near 6, so that would be the Stage 2A breakout point to watch imo. But currently the 30 week MA is strongly declining and relative performance is still well below the zero line, as well as being under a fair amount of resistance from the 2012 price action. So I only rate it as Stage 1A personally.

*** Here's the 2nd comment I was trying to post last night.

RMTI's big volume move was b/c they received Stage 1 FDA approval on one of their new dialysis drugs. I was actually long in it at the time and turned a nice little profit. That being said, I agree that it's still in a Stage 1, however look for another pop if the Stage 2 FDA approval comes thru in the near future.

[isatrader]

Stage 2 Continuation move with strong monthly volume in FLDM to new all time highs

[isatrader]

I just wanted to post a follow up chart to NVAX which I posted in the traders watchlist thread in Post#126

NVAX continued higher last week on decent volume and strong relative performance versus the S&P 500 to close the month at two year highs. But if you scale out onto the long term monthly charts you can see that it was the heaviest monthly volume in four years, and coincided with a monthly Stage 2A breakout.

[isatrader]

I've gone back through Augusts charts in the Watchlist - Investor method thread to see which stocks managed to close the month strongly against the headwinds of the falling market averages over the last month. So attached are the long term monthly charts of BFR, GGAL, FB, MAKO and SBLK, of which my personal favorite would be FB on a pullback in the next few months, so I'll be keeping my eye on that.

[theory6453]

Since the general consensus seems to be that the overall market is moving into a Stage 3, I decided to browse one of the recent worst sectors (Utilities) for some good Stage 3/4 short setups. Of the 5 Utilities sub-groups, Fixed Line Telecommunications, Multiutilities, and Conventional Electricity seem to be in Stage 3s, while the other 2 sub-groups are not far behind them in Stage 2Bs.

Here (in no particular order) are some potential good future short opportunities. I did not filter these on volume or anything else so be advised that some may not meet your own volume requirements and may be too “thinly traded”. You will need to do your own due diligence on them.

Many of these will probably not be ready to short until the first of the year once consolidate in Stage 3 for a bit and clear some of their support levels. Throw them on a watchlist and periodically check in on them over between now and Xmas. As it comes closer, you can start to pare this list down by relative performance and volume and relative performance to find the best setups.

The full list is below. My two current favorites so far are: BCE and SO

       

BCE
CTU
HLTOY
T
TLK
TLSYY
TU
STR
DUK
AEP
CPN
DRU
DYN
EIX
SO
XEL

Happy Shorting!