Here is a stock that came up on one of my new scans. I may buy this stock today, but only if it is able take out it's previous day's high.

I've been posting a lot of long candidates recently, and very few short candidates. This is because my long positions that I have are doing very well, and the short positions I have are going against me, or are going sideways.

The fact that longs are rising, means that I am not touching them. The fact that shorts are going against me means that I am weeding them out from my portfolio. This effect has caused my account to become overwhelming long; about 80% long in fact.

It is this through this process of blind selection that makes it appear as though my account is always "trying" to get on the right side of the trend. And the stronger the trend, the more it "tries" to align itself with the trend.

Broke: The New American Dream video

The following is a clip from Michael Covel's new documentary, Broke: The New American Dream. The amount of wisdom compressed into a 1 minute and 16 second clip is amazing:


Psychologically, I know, it is difficult to buy a stock after it has already risen 30%, but I have learned that your entry price is actually not a particularly important piece of information:


Unless something dramatic happens on the open Monday, I will buy this stock:


This stock's price made a new high:


This stock exhibited favourable price action on Friday:


Here's a stock that I find interesting. Notice how this stock is continuing to fall even though the general market is now up for a 6th straight day. This stock is, therefore, very weak on a relative strength basis.

This stock was taken from my public chart list:

Jack Schwager Interview

Last weekend, I stumbled upon an interesting interview of Jack Schwager by the Financial Sense News Hour. Jack Schwager is, of course, the author of the Market Wizards series of books, which I consider absolutely essential reading.

One great dilemma I find when it comes to trading books is that the traders that are the most successful, tend to be the least likely to bother to take the time to write a book. Put another way, if you are a trader working with, say, 100 million dollars in the market, why write a book revealing your technique?

In my opinion, this is a very major catch-22, and contributes to making learning how to trade successfully quite difficult. And this is why I believe that Schwager's books are so interesting, as they shed light on traders who otherwise would be still be unheard of today.


Here is a new stock that came up on one of my scans. I find this stock appealing due to it being in an uptrend, and also because it is forming a 20-day breakout.

I bought this stock $6.23, which was the high for the day at the time. My rationale for buying a new high for the day is that, in my experience, if a stock puts in a fresh high, then it will usually make another high later on.

If this breakout fails (which happens most of time), then my stop at $5.74 will be hit, and this will result in me losing 1.8% of my total account equity. Otherwise, I will hold the stock for as long as the trend persists:


This stock is currently in an uptrend. On top of that, it also has a very favourable chart formation:


I have seen a ton of failed breakouts this summer, but I still think this breakout has potential. The reasons I think this breakout has potential are as follows:

  • Breakout occurring on strong volume
  • Most other commodities and commodity currencies are falling, so gold is doing well on a relative strength basis. For example, yesterday, stocks were down, oil was down, natural gas was down, the Canadian dollar was down, the Euro was down, but not gold and silver.
  • The long, medium, and short term trends are up (this is key):


This ETF, which follows the price of Sugar, is currently in a strong uptrend. The ETF is a bit illiquid though:


There is a lot of talk about this correction signaling the top of this rally. This is entirely possible, but I really do not know what the market will do next, personally. My game plan is if the market continues to decline, then I will replace the weakest longs with new shorts. On the other hand, if the market resumes its uptrend, I will hang tight.

Below are some stocks that my scans picked up that either are weak, or look like they are rolling over: