A number of quality stocks appear to be forming, or just coming out of, short-term cycle lows. After yesterday's close, my list of possible stocks to focus on in today's newsletter was pretty lengthy. But after further reflection, I began crossing one after another off the list.
The complete uncertainty of the Syrian situation and today's jobs report coming out before the open, the weekend being ahead, and coupled with all the other concerns (suddenly rising interest rates, vagueness about QE ‘tapering', a new Fed chairman due to be appointed, and the debt ceiling, …) makes me hesitant to analyze trade possibilities today.
If there didn't seem to be a rush to go bomb a certain country in the Middle East, I would highlight several setups for bullish trades.
For example, something that caught my attention were the auto dealer/parts stocks. Carmax (KMX), a chain of used car dealerships, has broken above recent consolidation to set a new high. Autozone (AZO) and O'Reilly Automotive (ORLY), parts distributors, have been in two-week tight consolidations. If they break upwards out of those tight ranges, they should go a ways.
In Monday's newsletter I'll cover which of those three have strong seasonals, meaning track records of likely institutional accumulation this time of year. I will also cover which one(s) are ideal for a particular trade strategy that is very high probability and can handle 10% to 20% drops in the stock yet still return maximum profit. This is the time for conservative trades and one or more of these auto-parts stocks are about to offer ideal setups.
Of course, there's much more you need to know and many more stocks you can capitalize upon each and every day. To find out more, type in www.markettamer.com/seasonal-forecaster
Copyright (C) 2013 Stock & Options Training LLC
Unless indicated otherwise, at the time of this writing, the author has no positions in any of the above-mentioned securities.
Gregg Harris is the Chief Technical Strategist at MarketTamer.com with extensive experience in the financial sector.
Gregg started out as an Engineer and brings a rigorous thinking to his financial research. Gregg's passion for finance resulted in the creation of a real-time quote system and his work has been featured nationally in publications, such as the Investment Guide magazine.
As an avid researcher, Gregg concentrates on leveraging what institutional and big money players are doing to move the market and create seasonal trend patterns. Using custom research tools, Gregg identifies stocks that are optimal for stock and options traders to exploit these trends and find the tailwinds that can propel stocks to levels that are hidden to the average trader.
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