Tuesday, January 3, 2012

scanner trade

As said before, I have been using a scanner lately, and I have been finding it a useful tool in specific situations. Today we had a big gap up, and on these days I find little use for it at the open, but on weak openings I have the scanner set to identify stocks that have gapped up and are near highs of the day. On the 29th we had such a morning, and one name that popped up right away was DHI. I took a position on a breakout of the early consolidation and the stock never looked back. It turned out the homies were very strong that day and so with the help of the scanner I got in the hot industry for the day. Here is the visual:

I am starting to hold positions like this that give a good cushion in case the market is starting a serious uptrend. It would be nice to get a stable of 5-10 stocks or more as long term holds in hot industries. Not my strong suit. We'll see, the market has not offered that up in a while, so I will slowly build into it and only hold ones in the strongest industries with safe cushions.

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