The Stock Market Cook Book’s resident expert on Modern Portfolio Theory and ace software programmer, Professor Pat, has developed an addition to the right sidebar per my request. It’s going to be a short, mid-day feature highlighting stocks that are making new highs on strong volume, stocks that are making new lows, stocks breaking out (on strong volume) as well as those breaking down, and low-priced stocks in strong, bullish trends. Think of it as a the daily blue plate specials.
So what does this feature mean to you? Well, if you’re an active trader, you might want to check these out for short-term plays. Stocks breaking out of bases might entice the longer-term trader and investor while those breaking to new lows or breaking support might provide savory tidbits for all you hungry bears.
The stocks will be named by symbol only. Those on any short list will be either priced more than $5 (at the time of writing) as most brokerage firms will not let you short stocks under that price. If a potentially shortable stock is currently trading under $5, it will only be listed if it has options, and those stocks will be designated with a * next to their symbol.
No research is done on these issues. That, dear reader, will be left in your hands. Space permitting I might also include a thought on general market trends or note anything else of interest. Please be aware that penny stocks will not be included (unless there’s a spectacular reason why one should be), and most of the stocks I’ll mention will be trading over $2 on decent volume (generally over 150,000 shares on average).
I hope you find this feature valuable since some of these categories, especially the breaking out and breaking down ones, are something not found in too many other places, if at all. (I’m not aware of any.)
Although it’s after market hours, I’ll still post today’s blue plate specials. This is a trial run so we’ll see if the software works the first time through.
Bon appetit!