How to find short opportunities :Part 1
The market has had a approximately 10% move from its bottom in last 30 trading days before reversing hard. In the last 30 days some stocks have made big moves and some stocks lagged the market. Both of these kind of stocks offer opportunities for short sell. During market corrections or bearish phase stocks which have ran up a lot correct 20 to 25% and laggards start going down. You have short opportunities at both end of the market. You can look for buyer exhaustion setups in stocks that ran up a lot and you can look at breakdowns move in stocks which were under performing during the rally.
The following 100 stocks are top ranked stock by % gains in last 30 days. Stock priced below 5 are eliminated and stocks with less than 100000 average volume in last 4 days are excluded to calculate top 100 list.
Some leading stocks by price % change in last 30 days are:
ARNA up 109%
JKS up 102%
And you can see more stocks ranked by % change like this...
To find these 100 stocks using Telechart, you need to be familiar with the "Custom Date Sort" function. Using the "Custom Date Sort" you can sort the "Common Stocks" for the period between July 1st (the lowest point in the rally) and August 9th (the highest point in the rally). July 1st was the bottom of this uptrend. Once you get the sort you need to select Top 100 stocks by % change between those 2 dates. You can also look at Top 200 stocks instead of 100 if you are looking for more opportunities
If you want to use the filters I used to eliminate low priced and low liquidity stocks then you need to first apply the filter and create a Easyscan and then sort the Easyscan list by the Date sort.
Here is a step by step way to do this:
- Create a liquidity PCF: MINV3.1 >= 1000 This gives you stocks which had minimum 100k volume in each of the last 3 trading days excluding todays trading day.
- Create a Easyscan with following conditions:
- Common Stocks
- Price per share>5
- Liquidity PCF =true
Once you have this list setup go to Custom Date Sort and set sort date as:
Start Date: 07/01/10
This will sort your newly created Easyscan by the % change between those two dates. Select top 100 or 200 stocks from that and create a new watchlist "Rally Leaders". On this list you can use two kinds of scans to further reduce number of opportunities:
Stockbee Breakdown Scan
C <= .96 * C1 AND V >= 1000 AND V > V1
Keep an eye on these leaders for breakdown opportunities. If market continues its correction many of them will offer 10 to 25% opportunities.
In second part I will talk about how to find laggard 100 to 200 stocks during this 10% rally and look for short opportunities in them. In Part 3 I will have a video to show you how to do this. I showed a quick way to do this in Daily Market Analysis Video today.