Here are some interesting possibilities, with 20-30% upside potencial in the Basic Materials Industry:
CDII – buy at 1.55, stop below 1.45. Will be looking for a 100% return in a couple of months.
TIE – this is a real gem, check out the chart below. Looking for >50% return in a couple of months. Buy at 10-11. Stop below 10.40.
ATI – it represents the same chart pattern as TIE, though expected returns are not that exciting. Thus I would suggest buying some 45@March Call Options in this one. Target ~50$ by March Expiration.
Dear Trader Tony
It is very important to keep the big picture of macro market because despite the best setup sometimes stocks fail to pick up a direction if major market indices are down.
Just an idea.
Hi Tradingworld,
Thanks for the comment. I totally agree with you, as there is no such stock that can fight the general market trend for too long. Trading in the direction of the broader market and having great setups in place, would produce much higher returns.
Absolutely. I hope you are doing good. Do you look at macro picture of the market when scanning? I guess you sure do but how far do you see to trade?
It all depends on the market I am trading. For currencies, I never make predictions further than a day. Due to volatility and leverage my . When I am trading stocks, I am usually an swing trader, my time horizon ranges from couple of days to 2 weeks. For the broader market, which I analyze through SPX, I also look no further than 3-5 days.
Basically, when I am planning a trade, I take a look at a general market, then at some of the leading stocks, like Google, Apple, etc. Also, with the current correlation between EUR/USD and indexes, I am watching this pair also (although, the correlation has somewhat vanished since January). Also, if I am planning to trade commodity related stocks, I will also check the prices for related commodities.
I am basically a technical trader, only sometimes using Options Open Interest, Put/Call Ratio, VWAP for additional confirmation