Channel Guy Trader: Watchlist for 01/05/10

9:45 pm UPDATE FOR STOCK LOCATED BELOW

Hello Traders, starting today I will start posting my watchlist with my top 4 stocks that are weak and my top 4 stocks that are strong. I'm sure you guys will find this very useful and very profitable going foward. Included with the stocks will be a letter code that is described below:

BOL= Break Out Long

BDS= Break Down Short

SL= Support Long

RS= Resistance Short

I will also include in parenthesis the sector that the stock trades in. I was thinking about including the R1 and S1 levels, but these are sometimes viewed different by other traders, so I will let you guys handle that part. Now just a quick explanation of how I have found this list helpful to me in my intraday trading.To start off if the market is weak, I am looking at going short the stocks on the weak side and vice versa if the market is strong. I am usually looking for it to break through the key level and hold. If the market is weak at open and then reverses at the key reversal time usually around 10:30- 11 am, I am usually looking at the strong list to see which stocks are holding support levels and have the most volume and attention that will push higher easily on the swing back up. These are the basics, but I am sure you guys will know how to use the list in a profitable way. The whole concept is to have a small list of stocks that you are focused on and know the levels on, so you will be able to react quick when the market gives the stock an opportunity for you to partake in. I will have tonight's list posted in a bit. Leave comments under this post on the comment tab if you would like me to include my levels on the stock plays.


Strong-

YGE-16.48 BOL ( Solar )

WFC- 27.48 BOL ( Banks )

HAL- 31.34 BOL ( Oil Services)

CNX- 53.50 BOL ( Coal Energy )

Weak-

ACE- 49.14 BDS ( Property Insurance )

HCP- 30 BDS ( REIT )

M- 16.76 ( Retail )

NFLX - 52.96 BDS (Services music and video stores)

Commentary: The energy sector is definitely strong right now along with the banks and tech doing well. If you don't remember these three groups are like the three musketeers. So forget any other sector and focus on these three and you will make money. Play the stocks with volume and buy dips and your on your way to making money. It's that easy!!