Everyone always asks us how do we find the best stocks to trade? The first thing we tell them to do is to read our eBook, which explains how we find the best stocks that outperform the market and the sectors they are in. Scanning and analysing stock market data does take time and effort but the reward of finding the next hot stocks far outweighs the work we put in.
We at Stock Market Strategy pride ourselves on being professional chart technicians and all our analysis boils down to finding the best stocks to trade. This in turn means we can find the best chart to trade enabling us to make the most amount of money possible. Easy right? Easy if you consider that part of this process is software driven (details of which can be found in our stock market trading platform recommendation page). The other part is going through the stocks one by one and each of the charts. We then identify the criteria we use in our plan and by using our basket of stocks we then trade the best stocks in that basket.
Identifiying the Best Stocks to Trade Video
The stock market video update today runs through the analysis of the SP-500 (ES), the YM and the Nasdaq. Philip identifies the pull back flag in the ES and how it has come back into the sideward's price action range. This is a chart pattern we call the bull flag and it is a bullish signal. To learn more about flags and pennants visit our stock market education section and watch the video.
The YM's price action is trading a little different to the ES and is trading sideways into its MA. This is still classed as a continuation pattern but it is something to keep an eye on. Our last index on the list is the Nasdaq. This is not trending anything like the other two indices with the price action creating lower highs and lower lows.
The conclusion to our market analysis is that the markets are definitely not congruent and with all these mixed signals we need to position size according to our plan.
Philip briefly touches on gold and how it is relatively weak compared to the market and how he will be sitting on his hands till he sees further evidence to trade it.
Today's Best Stocks to Trade Recap
These are stocks that we have been observing in previous videos. The FFIV is one which has seen a big momentum shift and found support at gap fill with decreasing selling volume and support at 150 MA. Potential targets are also identified on the chart using over head resistance areas and Philip talks you through the thought process of looking at the price action to the left.
Stock Ticker REE is also setting up a potential trading opportunity with the gap in price action and the break of phase 1 into phase 2.
If you have any questions relating to this Market Update or wish for us to talk about a trading subject that you're interested in, please don't hesitate to contact us.