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.





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2 comments:

  1. Rock TruebloodFebruary 25, 2010 at 12:48 PM

    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

    ReplyDelete
  2. John C. LeeMarch 2, 2010 at 12:40 AM

    Hi Rock,

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

    ReplyDelete