Every day, there are thousands of companies to select from when looking for trading candidates. This includes companies in different sectors, of different sizes and with different prices. That’s a lot of companies to choose from, so how does one go about zeroing in on the ones that might turn into profitable trades? One very efficient way is to use the scanning tools available at StockCharts.com to help you find golden opportunities.
As an example, look at the chart below on Take Two Interactive Software (TTWO). This is a stock on our Strong Earnings ChartList – companies that beat both top and bottom line expectations – that we uncovered as a promising trading opportunity by using the StockCharts.com scanning feature.
In fact, EarningsBeats.com Chief Market Strategist Tom Bowley featured the stock in his Daily Market Report this past Monday after the stock had pulled back and reversed sharply. At the time Tom shared the stock, it was trading near $129, with the stock adding on $10 points by Wednesday – a nice 4.3% pop – and so far it has held well above that level while continuing to present a high reward-to-risk opportunity.
The great thing about using scans is you can define the criteria you want to use to find trading opportunities. For example, at EarningsBeats.com we have created 5 specific scans that all of our members can use, including High Volume, Downtrend Reversal (pullback scan), 20-Day Moving Average Test (pullback scan), RSI 40-50 Test (pullback scan) and 52-Week Highs (Breakout scan.) These scans can be used to scour the entire market or, in our case, our Strong Earnings ChartList, which currently contains 289 companies that beat both earnings and revenue expectations. We can then narrow down the list even further – for example, to those stocks with the highest SCTR rankings – as we look for the “best of the best.”
In order for the trading community to gain a better understanding of the power of scanning, Tom Bowley will be conducting a FREE webinar this Monday, June 15 at 4:30pm Eastern Time. This “Scanning Strategies” session will include teaching some of the important basics of scanning, as well as uncovering stocks on our Strong Earnings ChartList that might be ripe for a good trade. If you would like to attend this FREE webinar and are currently NOT a part of the EarningsBeats.com community, just click here to sign up for our free EarningsBeats Digest that comes out every Monday, Wednesday and Friday; you will receive room instructions on Monday prior to the event. It’s going to be a good one!
At your service,