Anyways on to more important things like my preliminary watch list for tomorrow (preliminary because if I spot any interesting earnings/earnings related/FDA/new contract/geo-political etc related breakouts pre-market or during the first few hours of the trading day that I like; I will also add them to my watch list).
Although technical analysis does work and I am primarily a technical trader, history has shown that stocks breaking out technical patterns on the back of a catalyst tend to make larger, quicker and cleaner moves than stocks that do not. In other words catalysts improve you success rate and risk/reward ratio in addition to reducing event risk since the news is already out and any further news is very likely going to also be along the same lines as that just released! For example, better than expected earnings are often followed by analyst upgrades or new analyst coverage.
So it should come as no surprise to you that my ideas for tomorrow come from the oil sector which has been on fire of late on account of geo-political instability in the Middle East. All together I have found three set ups that I have deemed worthy of my time in: $BDCO, $ROYL and $DPTR. Although I like all three, my major focus will be on $DPTR since this is a long set up and the other two are shorts and I am not yet able to short stocks since my account is under the $2,000.00 level required for margin and shorting stocks. Now onto the charts:
|Details of long idea on 9 month daily chart of $DPTR|
|Daily chart of $BDCO|
|15 Min chart of $BDCO|
|Daily chart of $ROYL|
|15 Min chart of $ROYL|
Good luck and good trading!