Volume Alert Trigger

[Mike]

While the volume alert trigger system is in the coding process, if it were working today the stocks below would have issued a possible buy alert trigger. The process behind the scenes is to extrapolate intra-day real-time volume to end-of-day and compare that volume to volume over the prior ten trading days. A stock that is trading close to the 50-day moving average or 10-day moving average with volume higher than any down-day volume in the prior ten trading days qualifies as a possible entry. This process runs on a preselected list of high quality growth stocks with great fundamentals. Today's list contains 59 symbols and six possible volume alert triggers developed during the trading day.

CLR looks to be bouncing off of the 10-week moving average and is considered a 50-day bounce in this method. It is a bit extended above the 50-day but the closeness to the 10-week moving average allows one to gauge the stop loss off of that average. Today's volume exceeded any down-day volume in the prior 10 trading days. This alert looked easy to enter and may remain actionable tomorrow.

EMES looks to be bouncing off of the 10-day moving average with today's volume exceeding any down-day volume in the prior 10 trading days. This opportunity also looked easy to enter and may remain actionable tomorrow.

AKRX is trading close to the 10-day moving average with appropriate volume surge but at least for my style of trading may be a bit extended being 4.5% above the 10-day. It could pull back tomorrow and allow a buy nearer the average.

THRM is like AKRX, extended 4.7% above the 10-day and would likely be a pass at least for today.

EOG would have produced a volume surge buy alert in the early afternoon but at the close it was 0.2% below the 10-day. This could have been watched to see if the price was going to surge. If this opportunity were acted upon this would be monitored for the possibility that the 10-day provides resistance and cut the loss about 2% below the average.

CBG would have produced a volume surge buy alert and is still within 2% of the 10-day, thus actionable tomorrow.

Six alerts with three easily actionable is the results of today's volume alert trading. These opportunities should be entered as close to the 50-day or 10-day moving average as possible with that line (with some porosity) representing the stop loss line going forward. This represents something like a 2-4% risk depending on how close to the stop line the buy was executed.

The idea behind the preselected list of stocks with good fundamentals is to provide an early entry opportunity into a stock that may not have set up yet with a classic pivot point with a breakout and with the good fundamentals offer the probability that the stock can rise over a medium to long time frame. I provide an example of a prior volume alert trigger opportunity in the following chart of EOG. In this case a stock with good fundamentals regains the 50-day moving average during a pull back in the stock. The 50-day moving average has turned flat giving us some confidence that the stop loss line will not be moving away from us. EOG never looked back. This buy point was 6.7% prior to the classic buy point opportunity at 94.15. Something else is noticeable about this opportunity that makes if even lower risk. The three moving averages (10-day, 21-day 50-day) have all converged at the buy point. Each moving average is a possible support line. These are very desirable set ups.