Hawk’s Scan Sentry Report July 24
Welcome to Hawk’s Scan Sentry Report. This is Sunday night with stock recommendations for for the week beginning July 25.
This week I was interested in determining which stocks are becoming the ‘new leaders’ within the recent rally. In order to qualify, the stock must make two consecutive new highs (or lows) over a specified look-back period, and then continue to make new highs afterward. Therefor, I also wanted to know how many of these signals have occurred in that same look-back period and how long ago the previous signal occurred. So, being a technical analysis toolmaker, I created a new indicator which would plot a dot on the chart when this signal occurred; and then this new tool would tag the dot with an ‘H’ for ‘High’ or an ‘L’ for ‘Low’ followed by a number which represents the instance of the of the signal over the look-back period. For instance, if this was the fifth time the price had made consecutive highest closes over the look-back period, the plot would be tagged “H,5”. Below that tag I plot the number of bars since the last occurrence of this signal. This tool doesn’t have a name yet so I currently refer to it in my technical analysis toolbox as simply HighestLowest.
I used this tool today to scan my usual universe of stocks which include all stocks in the NYSE and NASDQ which are over $5 and have an average daily volume >300000 shares . Below are some of the results of that scan. Since these are generally stocks which recently broke out of a trading range, you may want to look for a pullback toward the support level (which would be the previous highs before the recent breakout) for entry opportunities. I generally look for confitrmation in the Arps Fear/Greed indicator and I like to use a bullish cross of the Arps Price Acceleration Oscillator Radar2 to time my entries.
Let’s see how this new tool works out.
And now for the stock recommendations….
Longs____ Shorts
KSS AF
FTK IR
APOL AU
HP
May the trend be with you,
Hawk
