A bunch of stocks climbing rapidly right now,I'm listing my top 40 that when they start to decline should be worth the effort of following them.
I'm just hunting down those in my mind fall the furtherest,the fastest.
These are listed in order of highest ADR10 to lowest......
You can also compare the ADR10 to the ADR30 to find the "hottest" stocks in the last week or so.
Alot of folks don't understand how important this is but here's the deal.....
I KNOW which ones are without even having to look.
Why?....cause I'm watching the market/stocks every minute from premartket around 8:30 am to the close at 4 pm.EVERY trading day!
That is a HUGE advantage.
I know when I take even 2 days off in the past...I come back and I feel lost concerning what's been hot.
If you work and can't follow the intraday action well or at all,think about comparing different ADR periods against each other,it should give you a big advantage over those that don't.
And to quote Adam over on his blog http://stackyourcream.blogspot.com/
"Keep in mind that these are to keep your eye on. If they start to run, run with them until they show that they are breaking down".
XDSL SRZ CHRS QTM NCT FCH TLB PLD GVHR CMLS GRT RDN SAH PRKR HIG BZH DRYS OGXI PSS BBX CIT LNC GRA ABG DXCM OMX ABD CHS XJT ANN BWS CCRT SBH PFG PODD NZ PLA OFG SFD ASPM
I'm seeing alot of newer traders in the chat that don't understand the premise of this shorting process,I've seen it asked quite a few times if stock XYZ is a short now and the stock is hitting HODS,you're playing with fire if you short at or near hods,you wait for a technical breakdown,whatever you use or RED.
These stocks we find in our scans are set up as stocks that have risen theoretically too far too fast.
Wait for some kind of confirmation of a breakdown.
Shorting near hods certainly isn't confirmation.
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6 comments:
"You can also compare the ADR10 to the ADR30 to find the "hottest" stocks in the last week or so."
Does that mean if a stock has ADR10 > ADR30, the stock is considered hotter, since it is more volatile in the last 10 days?
Muddy,
What are some of the signals or confirmations when a stock is at HOD (or LOD as well)? I often have wondered what to do when a stock is on the Scottrader Market Movers list or there is an alert in chat about HOD/LOD. Its also similar to the stocks that run in pre-market and gap up - how do determine if you should go short or long?
Its seems to me that when a stock gets to a HOD/LOD quickly (especially), the stock often continues in the same direction or does a reversal because of momentum inertia.
For a HOD stock, some signals it may continue higher or even pop:
1) Obviously, the price bars continue moving up.
2) Volume is strong.
3) There's been a 10/60 cross.
4) The stock has reached a whole or half dollar mark and continues to be strong.
5) The bid-ask is jiggy.
6) The stock is still within its normal day range, e.g. it usually bounces between $2 and $3, if the price at HOD is $2.50 this means it would not take anything extraordinary for it to continue up to $3 where there is the closest resistance.
Is there anything else to consider?
And on a HOD, these come to mind that would signal a reversal down:
1) Red price bars as it drops.
2) Volume decreases.
3) You hit resistance or the stock didn't remain strong when it a $1 or .50 mark.
4) There's no news, especially the drug companies not good to short on first day of news.
5) Bids are significantly lower than current price.
Is there anything else?
Much thanks for everything.
thanks for answering my question Laura, in that other post
Thanks Rick...my long winded question above clouded my main question "What does a stock at the H.O.D. mean?". I can definitely see the value of knowing / remembering a stock's past patterns.
Hello Muddy,
What does ADR 10 and ADR 30 represent?
Thank You
Ron
Ron, read the greenonthescreen.blogspot.com blog.
Discussed there a bunch.
Average Day Range.
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