As much as I don't really want to do this I do want to show you how to use the 2-hour charts to set-up the next day's activities. Now before we begin I want everyone to understand - I may or may not take a position in any two of these four stocks. If I do take a position you will hear about it after the fact. If I don't take a position in any of these it will be because I found something better in a gap down or gap up scan I will run tomorrow during market hours. But these four will be on my watch list for Friday. They come from a generic 10 day low scan.
First we have Fremont General Corporation (FMT). I don't know what they do nor do I care - all I do know is that they had a BOB on the 2 hour charts today, institutions hold 66% of the float and their 10 period ATR is .53 cents.
Next we have AMD and it has the infamous Double Dummy or in the Japanese candlestick parlance - two stars in the south. The double dummy is a strong signal but I hate AMD. However, if I get a good set-up and nothing else is better I'll take the trade. The ATR is only .34 so that means it is looking to increase. And the 'toots hold 74%.
Good old ICON - a wonderful stock. They make something and sell it to someone - or something else, I think. The ATR is .59 which is OK and the institutions hold 58% of the float. The BOB coupled with a dummy is intriguing.
Last but not least and my favorite good old SVM. This one is really distressed, has an ATR of .20 and institutional ownership of 64%. What more can I say?
You must have a set-up to buy any of these stocks - no set-up = no buy - it is that simple. I'll revisit the four tomorrow evening and we will discuss the pros and cons of each one of them at that time.