Beaten Up Plays

We have a lot of names on the list today, the 5 day market pullback has provided us with a lot of decent long set ups, however with today’s 2 point gap on the $SPY I’m not sure how useful this list will be today.  I’m starting to pay close attention to some of the name brand beaten up names like $BTU (+3.60%) which was on yesterday’s list for possible long trades.  Believe it or not, the 10 worst performing stocks in the SP500 has beaten the top 10 best performing SP500 stocks since 2001 if you bought them the last day of November and held them until the 1st trading day of the new year–another busted myth.  While some of these are not SP500 stocks $RAX $POT $MOS $ANF $CLF come to mind.

My process is based on market structure not on beliefs or myths of what works– or what doesn’t work.  They are certain behavioral patterns that have been around for 100 years that are base on market structure, these behavioral patterns are recognizable, observable, and quantifiable.  On daily basis we have 5,000 liquid stocks that we filter based on certain market structures that gives us an edge of a higher probability than a random outcome.  Once the list is narrowed to a handful of names the market will further narrow down the list by getting us in or keeping us out of these names with a range expansion move.

These are what I consider very tight set ups that will trigger if they break yesterday’s high.  On a regular trading day I would indiscriminately take every trigger because you just don’t know which one will be the big winner, you might have an idea but in the end you don’t know.

You can reach me at [email protected]

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.


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