Do you ever look at a chart and go....'wow...did that ever move...too bad I missed that?
With Gold up $20 today is there anywhere else we could find some shiny investments?
Well, absolutely there is!!!! Have you figured out the home page is the Shiny Road to Riches? What home page? Well, the Stockcharts home page. Let me show you some beautiful ideas from the last week.
Here is LEG.TO. After a 40% surge it went into a sideways base.
Where can you find these great bases setting up? Well, you can run scans every day. That's valuable too. However, check out these patterns from the TSX box on the homepage.
These red arrow buttons are a quick place to look for what is going on.
After selecting the tab from the top of the list, you can get to a candle glance view by clicking the candleglance link under the list. I've marked the link with a blue arrow.
So you can see PVG.TO breaking out from a base. You can also see EFN.TO is trying to breakout from a plateau base. You can also visually scan and see that 4 of 10 charts are precious metal stocks. That's important information.
I changed the setting to add the MACD, changed it to 6 months from the drop down box and I have a quick view of the top 10 stocks on the $TSX. I can instantly see the chart patterns I like to trade. Day traders might like Sears Canada or Second Cup after the fall. Others might want to buy CG.TO if it can break a down trend line. Then go set an alert! Easy to do.
All the red arrows are tabs I like to Candle Glance. If you are in the strongest ETF's going forward, what are the odds your going to be making more money than the average?Pretty good. Knowing what the top ten ETF's are can help you. Finding the top 10 movers on the day might be more valuable. Then you can try to find a Canadian Equivalent.
The Nasdaq typically hosts the most dynamic new issues. It is also a stock exchange where growth stocks have listed. Knowing what strong stocks are there is important. FB is just getting up from suntanning for 3 months. Breaking out of that base is very important. I saw FB multiple times in the last 2 weeks on the lists.
Michael KORS broke out of a base below $45. When it finally popped, it went up 25% in a few weeks.
New IPO stocks have a great feature. Once they make their first base, and most investors lose interest, the Institutions love to buy those bases as they set up. Check out FRAN on your own to see how profitable trading breakouts from IPO bases can be. When volume and price moves both come into the stock as it breaks out of bases, it is a nice time to be watching, earning and learning. So look at the price and volume action in FB here.
Full disclosure, I own both TCK/B.TO and FB. Both of them were chosen because of the basing patterns.
Good Trading,
Greg Schnell, CMT
