Thursday, February 25, 2010

BREAKOUT SETUPS

I like to scan the 52-week highs list regularly to see if there are some sweet swing setups. I did find a few that 1) broke and closed at or above resistance, 2) all made 52-week highs. It is an obvious sign of strength when stocks are breaking out to new 52-week highs while the market remains in a neutral range. In addition, follow up checks on a stock's sector group is encouraged as you may find those stocks mimicking the same patterns.

First chart is a 3-mo of the SPX. It is still caught between the 50/100-day MAs.





Posted by John C. Lee at 2/25/2010 05:02:00 AM

2 comments:

Rock Trueblood said...

Hello John,

I love your blog. I've been reading it now for a few months now.

I just noticed something looking over your post of 2/25/2010 which shows the breakout setup:

You do not use a logarithmic chart look. Please, sir, could you explain if this is a preference of yours just for short term trading, or maybe it is your chosen method for all time frames?

Curious,

Rock in Key West

February 25, 2010 at 12:48 PM
John C. Lee said...

Hi Rock,

I use both. The parabolic ones shouldn't be used in log scale for best picture.

March 2, 2010 at 12:40 AM

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