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Charting the StockTwits50

By the end of Wednesday, this post may either prove me wrong or very right, but at least I’m brave enough to take a stance on my views at this point.  After a -2% day in the $SPY and -2.8% day in the $QQQQ many people have found themselves either redeemed after months of being under-invested, or feeling like they are left “holding the bag”.  Every investor, especially home gamers, need a way to strategy to prevent them from being complacent or worse yet, falling victims to their own analysis paralysis.  For the past couple of months, my strategy has been to leverage the power behind the algorithmically developed StockTwits50 by @ivanhoff and @howardlindzon at StockTwits50.com.

With nearly 10 years of history working for a hedge fund, I have a great deal of knowledge of the markets I’ve developed over the years, but there is no doubt in my mind that the knowledge that can be gathered, filtered and analyzed through the @StockTwits community is invaluable.  The advantage that young investors have, being surrounded by the minds and mentors of @ZorTrades @1nvestor @chessNwine @traderstewie @TraderFlorida @TA_Trader @StevenPlace and countless others, allows the inexperienced investor to accelerate their learning process.

It is no surprise to me that the momentum found in this social network of traders, scalpers and investors is a perfect fit in the middle of a market that has massive momentum behind it.  Therefore, I find it extremely fitting to rely on charting the StockTwits50 on a daily basis to help determine my course of action for the next trading day.  Each trader, sticking to their style or strategy, has to make up their own minds on a daily basis and stick to an objective plan if they are to survive long term in the market.  This includes adapting to ever-changing markets.

In my opinion, after reviewing the charts of the StockTwits50 leads me to believe that the bull market momentum is still in tact.  My indicators point to a temporary blip in an ongoing uptrend, with many of these high-octane momentum stocks showing healthy pullbacks, basing patterns, pulling back to (and holding above) key 50SMA levels or 20day VWAP levels.  Some stocks are continuing to stay within basing patterns they have been building for weeks, and others, like $LVS are showing a repeat of the pop-drop and chop pattern.  There are even some gems like $WLK and $GPOR that had stellar days. There’s even one stock that looks like a “pocket pivot” play, like $CPWM.

Sure, many of these stocks may be drawing their line in the sand here, but the fact is, in the context of a broad bull market with massive momentum, the key is to ride it until it stops.  $SPY & $QQQQ weekly charts are looking fine.  I’ll be posting each of the 50 charts for this week’s StockTwits50 with important basing / support levels indicated on the charts.

http://chart.ly/users/CoderTrader

Trade ’em well.  ~ @CoderTrader

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Categories: stocks
  1. February 27, 2011 at 10:36 pm

    keep journaling. at worst you will become a better investor

  1. February 23, 2011 at 7:44 am

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