EarningsBeats.com Digest for April 1, 2022
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Monitoring Morning Weakness For Trading Opportunities
One short-term trading strategy I have is to look for stocks that appear to be under accumulation and buy them during morning weakness, particularly if other bullish indications appear as well (price support or moving average test, light volume on selling, etc). One of our ChartLists that we regularly update on the StockCharts.com platform is our
Strong AD ChartList (SADCL). Periodically (perhaps once a month or so), I update this ChartList, looking for companies that show nice relative strength, but more importantly, a very strong AD line (accumulation/distribution line). If you'd like to read more about this technical indicator, you can CLICK HERE. We provided one such stock to our EB members
on Wednesday in our Daily Market Report - McCormick & Co (MKC). Here's the chart:
Currently, we have 332 stocks on our Strong AD ChartList. By pulling them up in "Summary" form on StockCharts.com every morning and sorting by "% Change", I have access to a large number of potential trades similar to MKC. Like any other trade, they provide us no guarantee, but we do know that these companies have a history of finishing trading days at the upper end of each day's trading range. That's how a company develops a strong AD line to
begin with. I usually review this ChartList in "Summary" form around 11am ET or so to see if I'm interested in trading any of these stocks that are down in the morning.
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Tom Bowley
Chief Market Strategist
EarningsBeats.com
Better Timing. Better Trades.
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