Professor’s Comments Something to Think About 11/22/20

Posted by OMS  at November 22nd, 2020

Good Morning!   Do you want to have some fun while watching football today?

Ok, then turn on your computer during the game and put up the Scalp Trading Indicators on your Think or Swim Platform.

I want you to start by looking at look at the volume indicator on the Dow.  We’re going to use the volume indicator to trigger trades on the top stocks on the Member’s Watch List (MWL).  So anytime the volume indicator on the Dow turns positive….anytime,  I want you to note what happened to the top three stocks  (I only looked at the top 3), during the next week or so.  I think the results will amaze you.  I’m certain they will be more interesting and rewarding than watching the game.

For instance, when the volume indicator on the Dow turned positive on 5/14/20, the top three stocks on the MWL were FTNT, SA, and TSLA.  FTNT went from 138.06 to 148.85 two days later (5/18).  SA went from 14.86 to 20.44 on 7/28.  TSLA went from 160.67 to 359 on 7/13 and then to 500 on 8/31.

When the volume turned positive again on 6/29, the top three stocks were BBBY, AU, and NBR.  BBBY went from 10.05 to 26 on 10/20.  AU went from 28.676 to 38.5 on 7/27.  NBR went from 33.77 to 59.09 on 8/11.

On 8/20, the volume indicator turned positive again.  TSLA, UNG, and SAM were at the top of the List.  TSLA went from 400.37 to 502.49.  UNF went from 13.43.  SAM went from 852.60 to 896 on 8/27.

The volume turned positive again on 9/25.  The top five were BBBY, BYD, and DDS.  BBY went from 14.53 to 25.75 on 10/13.  BYD went from 29.79 to 35.03 on 10/6.  DDS went from 30.62 to 61.5 on 10/12.

More recently. The volume turned positive again on 11/3.  Heading the List were TCBI, ADS and ACHC.  TCBI went from 45.29 to 55.76 on 11/16.  ADS went from 57.37 to 70.72 on 11/10.  ACHC went from 37.27 to 44.25 on 11/17.

Here’s the point.  There were NO Losers!   I went back and checked several dates in 2019 and 2018.  In every case I looked at, if you bought the top three stocks on the MWL when the Scalp Trading Volume Indicator on the Dow turned positive, you made money.   I didn’t post these dates because you don’t have any way to check them.  But you do have the data for most of the other dates I posted above.  Dave keeps about three months of past Lists on the web site.

So, while you’re watching your favorite team today, just for fun, pull up a few past Lists and look for yourself.  You might also want to look at what happened to the top NASDAQ stocks on the List when the volume indicator on the Q’s turned positive.   If you trade options, putting on a Bull Spread or buying straight calls on these the top stocks might be something to consider.

Anyhow, this week, several energy stocks are at the top of the List, including NBR, HP, DVN and SLB.  Also, DIG is at the top of the Dean’s List.   Hmmm?  Are the Lists trying to tell us something?

I don’t know about you, but I know what I’ll be watching on Monday.

Enjoy the game and have a great rest of the weekend.

h

Not sure of the terminology we use? Check out these articles

The Hockey Stick Pattern
The Creation of Waves and Trends
FAQ

All of the commentary expressed in this site and any attachments are opinions of the author, subject to change, and provided for educational purposes only. Nothing in this commentary or any attachments should be considered as trading advice. Trading any financial instrument is RISKY and may result in loss of capital including loss of principal. Past performance is not indicative of future results. Always understand the RISK before you trade.