Mid-November Setups

Stocks closed near their highs for the first time in nearly a month on Friday, with the S&P500 bouncing off a key 61.8% fib level (June low to September high retracement).

On its own, a decent candle, and accompanied by good volume. Follow through is key and it would seem that a lot of folks are expecting a relief rally into year end.  We shall see.

JEC short setup still valid.. trigger below $38.5 w/ requisite volume

LM clear laggard as shown here on weekly basis

TSLA squeeze watch >>> Short % of Float (as of Oct 31, 2012): 62.50%

AWK supported nicely by 100ema and looks able to buck an otherwise weak market

GGC new highs on deck

GNMK getting perky again

TUP high and tight bull flag

RCMT watch action above $5.7

PYDS posted record earnings last week

TPNL superb microcap chart, also announced record results last week

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Epictetus – Words To Live By

>>>>>Immediately prescribe some character and form of conduct to yourself, which you may keep both alone and in company. Be for the most part silent, or speak merely what is necessary, and in few words. We may, however, enter, though sparingly, into discourse sometimes when occasion calls for it, but not on any of the common subjects, of gladiators, or horse races, or athletic champions, or feasts, the vulgar topics of conversation; and principally not of men, so as either to blame, or praise, or make comparisons. If you are able, then, by your own conversation bring over that of your company to proper subjects; but, if you happen to be taken among strangers, be silent. Don’t allow your laughter be much, nor on many occasions, nor profuse.

Avoid public and vulgar entertainments; but, if ever an occasion calls you to them, keep your attention upon the stretch, that you may not imperceptibly slide into vulgar manners. For be assured that if a person be ever so sound himself, yet, if his companion be infected, he who converses with him will be infected likewise.

Provide things relating to the body no further than mere use; as meat, drink, clothing, house, family. But strike off and reject everything relating to show and delicacy. 

As far as possible, before marriage, keep yourself pure from familiarities with women, and, if you indulge them, let it be lawfully.” But don’t therefore be troublesome and full of reproofs to those who use these liberties, nor frequently boast that you yourself don’t. 

If anyone tells you that such a person speaks ill of you, don’t make excuses about what is said of you, but answer: ” He does not know my other faults, else he would not have mentioned only these.” 

It is not necessary for you to appear often at public spectacles; but if ever there is a proper occasion for you to be there, don’t appear more solicitous for anyone than for yourself; that is, wish things to be only just as they are, and him only to conquer who is the conqueror, for thus you will meet with no hindrance. But abstain entirely from declamations and derision and violent emotions. And when you come away, don’t discourse a great deal on what has passed, and what does not contribute to your ownamendment. For it would appear by such discourse that you were immoderatelystruck with the show. 

Go not [of your own accord] to the rehearsals of any authors , nor appear [at them] readily. But, if you do appear, keep your gravity and sedateness, and at the same time avoid being morose. 

When you are going to confer with anyone, and particularly of those in a superior station, represent to yourself how Socrates or Zeno would behave in such a case, and you will not be at a loss to make a proper use of whatever may occur. 

When you are going to any of the people in power, represent to yourself that you will not find him at home; that you will not be admitted; that the doors will not be opened to you; that he will take no notice of you. If, with all this, it is your duty to go, bear what happens, and never say [to yourself], ” It was not worth so much.” For this is vulgar, and like a man dazed by external things. 

In parties of conversation, avoid a frequent and excessive mention of your own actions and dangers. For, however agreeable it may be to yourself to mention the risks you have run, it is not equally agreeable to others to hear your adventures. Avoid, likewise, an endeavor to excite laughter. For this is a slippery point, which may throw you into vulgar manners, and, besides, may be apt to lessen you in the esteem of your acquaintance. Approaches to indecent discourse are likewise dangerous. Whenever, therefore, anything of this sort happens, if there be a proper opportunity, rebuke him who makes advances that way; or, at least, by silence and blushing and a forbidding look, show yourself to be displeased by such talk.

http://classics.mit.edu/Epictetus/epicench.html

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The Discovery Process

Recently I was asked how I find stocks.

It’s basically a combination of scans & input from colleagues.

I’ve been hanging out in a free chatroom on IRC for the past decade.

Small place, centered on technical analysis.  $ISR came from there.

Aside from that I watch twitter, specifically @vince8675 & @stt2318.

I check their charts and nearly always a couple of them will jump out at me.

Then after the market closes, I run through about a half dozen scans:

1.) New Highs – Be familiar with these names; sometimes when you see a new one, pounce

Can also be used as a sentiment gauge, over 180 hits is a boiling hot market

2.) Momo – Seek out uptrending stocks making another move on above average volume, join in the fray

$ACCL and $CSIQ get top honors for Monday potential

3.) Unusual Volume – These are more obscure, sometimes thin stocks, again solid volume

$RLH recently revealed itself & looks about as juicy as it gets

4.) Strong Volume Gainers – similar to the above, except this one includes OTC stocks

$ZERO deserves an eye here

finally,

5.) Anti Momo – look for downtrenders which are falling again on heavy volume, sell short

$GMCR for instance, is in the trash heap

When an individual name shows up amidst both my peers and my scans, the setup is perceived as having increased legitimacy.

For more detail on how I create actionable watchlists, visit this post.

Happy hunting!

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5 Short Setups

Watching these for more downside:




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February Setups

Resilient market yet. We could get a blow off top early next week. Suggestion is to keep high flyers on a very tight leash. Will be stalking SPXU under $10.5 and TVIX sub $14. Meanwhile, there are still a few nice long setups popping up. I’ve listed a half dozen of them below, and then there’s a handful of shorts. Follow me on twitter for more frequent charts.

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LONG
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SHORT
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PENNY
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MagneGas Corporation produces and distributes bottled gas to the metal working market in the Untied States. It offers MagneGas, a natural gas alternative and metal working fuel made from industrial, municipal, agricultural, and military liquid wastes. The company’s patented Plasma Arc Flow process gasifies liquid waste, creating a hydrogen based fuel for use in metal working, cooking, heating, and for powering bi fuel automobiles.

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