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Daily Stock Alerts Stock Setups Signals

Setup alerts, triple moving average and Donchian crossover alerts,  Bollinger Band squeeze alerts, breakout alerts, gap alerts, signals, surge alerts, and other watch list candidates.  This scanner will, for example, generate an alert when stocks have had a Bollinger Band squeeze and a band penetration after the squeeze.  Other sites may list stocks with a Bollinger Band penetration, but a band penetration without the preliminary squeeze is of little use.  It is the squeeze that gives the band penetration meaning (see the explanation below).  Our scan results are much more significant than what you find on other sites.  For example, a gap in price without a surge in volume is not nearly as meaningful as a gap with a surge in volume our gap alerts occur when there is a gap with a surge in volume.  .

This page describes the use of alerts and signals in a disciplined strategy.

Alerts/Signals Are at 4 Other Locations on This Web Site.
 (Check them out: different pages use different screens - R.C. Allen, Surges, etc.)

Use "Directory" to see what's where on the site.  Directory 

Below, there is information about alerts and alert systems, Bollinger band squeezes and band penetrations, gaps with volume surges, Donchian signals, illustrations of stock "setups," and information about our StockAlerts subscription.  There is also a brief free sample list taken from the current list that subscribers get (updated daily), but you should read all of this page before reviewing those stocks so you will understand the alerts given.  Go to the free list.

Top Portfolio Performance Requires A Good Alert System

In order to have a list of stocks available so you can quickly replace stocks that have just been sold, it is necessary to have a "watch list."  To create a watch list consisting of stocks that are about to surge you must focus on "setups."  Develop strategies, disciplines, and systems that will enable you to find "setup" situations quickly and regularly.  You should have an alert "system" that will flash alerts for turnaround setups, alerts for price setups that signal a pending breakout, alerts on setups that signal a new trend, alerts for setups that indicate a stock is likely to break down soon, and alerts when moving average setups occur (as when they signal momentum alignments that suggest the beginning of a new trend).  The R.C. Allen triple moving average crossover system and its variants are such systems. 

You should have a heavy-duty real strength screener (see Strongest Stocks and The Valuator), not just the RSI.

Use An Alert System To Build Your Watch List

The most successful traders and investors do not want to wait 6 months to find out whether a stock will perform. They plan their purchases so that they will know within a few weeks if their decision to buy was right or wrong. They do this by monitoring a variety of alert screens. An alert screen tells you that a specific "setup" has occurred that usually culminates in a significant move.  Once the conditions of the alert have been satisfied, the trader puts a stock on his "watch list." He then waits for the alert to become validated by the commencement of the move or a "trigger event."
An example of a validated alert would be if a stock is placed on the "watch list" because an alert signaled that the stock has declined to its rapidly rising 50-day moving average. As the stock nears its rising 50-day moving average, you would put it on your "watch list."  The confirmation occurs if the stock reverses its downward direction after touching its rising 50-day moving average (institutional investors tend to be buyers at such times).  The alert announces "Here is one to watch!"  The "trigger event" says "it's time to act!"  The trader uses alerts because time is money. To achieve maximum returns on his money, the trader attempts to keep his portfolio fully invested in profitable positions. Any time a portfolio has a non-performing position, that portion of the portfolio exerts a drag on the result of all the positive work being done by the performing positions. Why buy a stock just because it has a "good story" and then wait for 6 months for it to make any progress, when a simple alert system can really direct you to stocks that are about to move now. By using alerts to create "watch lists," you can dramatically cut your wait time for performance.  Traders at Stock Disciplines generally wait no more than 2 weeks for the expected move.  If it doesn't occur, they know that the setup failed, and that it is time to look elsewhere.  They have to have a very good reason to keep holding.
Let’s assume a trader (or investor) likes to maintain 10 positions in his portfolio. Each position is a "slot" or "basket."  Every time a stock is purchased, a slot or basket is filled.  If any basket has no position in it, that basket is non-performing.  If our trader averages 7 positions over the year, then 3 empty baskets have dragged down the performance of the other 7.  Instead of averaging 40% for the year (assuming each position gained 40%), the portfolio will gain only 28% (assuming little or no interest for the empty slots).  If the trader has an alert system that tracks several thousand stocks while monitoring a variety of alert "setup" conditions, then when the portfolio sells a position, it won’t take long for the alert system to find another "setup."  The alert system also increases the odds that the trader will not have to wait long for the new stock to perform.  The alert system can notify the trader if either a "buy" or a "sell" setup is emerging.  If the trader has sold a position but the alert system cannot find a replacement buy candidate among several thousand stocks while using a variety of alert strategies, then the market is probably not trending but simply moving sideways or declining. An alert system therefore has a "built-in" discipline that keeps the trader from filling empty portfolio slots with non-performing stocks.  If the alert system cannot find any stocks that are setting up for a significant move, then why buy anything?
Why do traders at Stock Disciplines consider StockAlerts scans to be superior to scans found on most Web sites?  To begin with, StockAlerts is based on a pre-screened stock universe.  That screening eliminated many (but not all) "junk" stocks.  In addition, search algorithms are more complex, requiring more complete or better "setups."  For example, some Web sites might find stocks that have penetrated a Bollinger band but StockAlerts finds stocks that penetrate a Bollinger band AFTER a Bollinger band squeeze (a period of low volatility).  That factor alone makes a very big difference in the quality of the signal.  Let's say you are looking for stocks that satisfy the 4-week rule originated by Richard Donchian.  Some scanners will find stocks that close above their highest price for the last 20 days.  That means any stock making new highs can satisfy the filter.  Is that what you really want from the filter?  That's possible, but there is something better.  What you really want are stocks that have broken out of a 4-week consolidation pattern.  The sideways pattern is important because it represents consolidation.  That is, the old shareholders are nervous about the stock and are bailing out while new shareholders that are believers in the stock are replacing them.  You want stocks that have been going sideways but that are now resuming their upward climb.  Our Bollinger Band Squeeze alert delivers that.  A squeeze results when a stock goes essentially sideways (during this consolidation time volatility is usually low because there is a relative balance between buyers and sellers).  Our alert system is designed to signal an upper band penetration only AFTER a squeeze.  This also satisfies the purpose of Donchian's channel breakout rule.  We know of no other stock filter that can do that.  Our algorithm does not specify that the stock has to consolidate for exactly 4-weeks.  However, it does require some "consolidation" or a "quiet" period before the breakout.  That filters out far more stocks than simply aksing for stocks that are making new highs. 

StockAlerts is one of the tools that our company members use to find stocks that are about to move.  It tracks over 8,000 stocks with a variety of alert systems.  We create lists of stocks that have triggered any of six important alert systems.  We believe the lists provided are worth far more than the price of a subscription.    
The lists are available in the password-protected "Subscribers" section of this site.  We believe this can be an extremely valuable resource for those who want to maintain a "watch list" that is regularly updated with a fresh supply of stocks that appear to be getting ready for action soon.  What follows is a description of StockAlerts.


How could an alert be configured?  Suppose that a stock has been in a trading range for 6 months, ranging between $22 and $27.  What we are looking for is an alert system that will notify us when conditions suggest the probable penetration of the $27 barrier. Assume that our scanning computer has already identified the stock as being in a trading range.  What are some of the other conditions that we might require before an alert is generated?  We might want the stock to have diminishing volume when its price has been in decline and increasing volume when the stock has been rising.  We may want the stock to achieve a new 4-week high or give some other sign that it is breaking out of its trading range.  If we do, then we also want the volume to pick up dramatically as the stock penetrates the upper boundary of its trading range.  We want the alert to say "watch this one, it may be about to break through the overhead resistance" or "check this one out, it has just broken through the overhead resistance."  The alert should not say, "buy this!"  Alerts are not "buy" or "sell" signals.  After getting an alert, the trader might then wait to see what happens next.  Does the stock immediately collapse back into its trading range?  Does the upper boundary of its trading range ($27 in the example above) act as support after the breakout?  The point is that the alert merely prompts the trader to place the stock on the watch list so that a quick response can be made if the "trigger event" occurs (if the stock succeeds in pushing through the resistance at $27, tests support there, and then begins to climb).  Just because the stock breaks through the resistance at $27, there is no guarantee that the stock will keep rising.  For some traders, though, the breakout is enough.  For them, early entry is worth the risk of a breakout failure.  That is, the "breakout" may be a "fake-out."  That's why some traders require the satisfaction of additional conditions.  The alert might also be designed to stay mute until the stock has remained above the resistance a certain number of days.  Even so, the alert cannot guarantee a good result. However, waiting for the alert does increase the probability that the trade will have a successful outcome. A well-designed alert system also minimizes the "down time" for the slots in a portfolio when they become vacant.

All the stocks in the StockAlerts database are regularly scanned to determine if certain strategy "setups" have occurred.  A "setup" is a stock pattern of price and/or volume behavior that is often precedes a significant upward or downward move (with a relatively high level of reliability).  If our scanning system "thinks" a stock may be completing one of these patterns, it will generate an alert and identify the suspected pattern.  The StockAlerts output makes it much easier to find the stocks that disciplined strategies covet.

Once again, empty slots in a portfolio lessen the impact on the portfolio of the gains achieved by the other positions.  Therefore, high performance systems and disciplines tend to keep all slots full--and making money.  The level of performance achieved by your strategies by the end of the year will be determined by the percentage of time the portfolio is fully invested in accordance with your high-performance strategies.  The most effective traders develop systems that keep their strategies invested by quickly filling empty slots with rising stocks (or declining stocks for short-sellers).  To this end, many successful traders maintain a "watch list" of up to about 300 stocks that they constantly scan to see if any are ready for inclusion in the portfolio.

StockAlerts is intended to be a helpful tool in the development of the "watch list."  It scans for stocks that have completed or nearly completed an attractive "setup."  Thus, the stocks highlighted tend to be more timely than those of most lists.  An alert-generating stock will soon follow through with a signal or it will not.  Either way, it sould not take long to learn if the money is well-placed.  This much shorter "wait time" is extremely important, because the saying "time is money" is particularly true for traders.  Without this advantage, a person might be "involved" with a stock for months without a clear indication about its "intentions."  A regular review of the stocks that generate alerts in StockAlerts should be a very useful discipline for traders in their efforts to maintain a list of stocks that are ready for action at any given time.  Keeping and maintaining a good "watch list" is one of the more important stock trading disciplines.

The signals generated in StockAlerts are not recommendations to buy or sell.  We simply report the output of various search algorithms.  The reader will have to evaluate the signals generated with regard to their context (overall chart pattern, news related to the company, etc.).  Even if a scan indicates that an alert has just been triggered, a careful analysis of the chart may reveal significant resistance just above the current price.  Therefore, caution is in order.  Never act on an alert without evaluating its context.  The alert system cannot detect the difference between a great setup and something that looks good but is actually a dangerous "booby trap."  If you decide the stock is not a "booby trap" and that there is no strong resistance that must be overcome, then it can be considered for inclusion in a "watch list" and monitored to see if an appropriate follow-through buy signal occurs.  Our system currently generates the information and alerts listed in the following "EXPLANATIONS" section.  Only the "UP" alerts are defined below, but our scanning system generates both "UP" and "DN" alerts.  The "DN" alert indicates the existence of conditions opposite to those that cause an "UP" alert.

A short table listing a few of the stocks on the current subscriber list is near the bottom of this page, but you should read everything between here and there so you will know what you are seeing.  The following table resembles the reports subscribers get with a StockAlerts subscription.  The alerts shown below in the left column are fictitious and should not be construed as related to the other data shown or to current stock patterns.  Some names are also fictitious and some symbols are real but not for the indicated stock.  Charts are not included with our alerts.  Below the following table, there is a description of the alerts you might get and charts to demonstrate what those alerts might look like.  Those charts do not represent stocks listed in the following table.  Subscribers get tables resembling (in general layout) the following table, but it will be up to subscribers to enter the symbols in a charting program or Web site and evaluate whether or not the stocks should be bought, sold, included in a watch list, or ignored.

The following is an outdated example.  Reports are updated daily

The Minimum Volume Surge Required for This Scanner's List Was Equal to 0
Alert Updated (Day) p.m. After Close (Date) Sym Price Av. $/Day Vol Ch% RSI
Gap Dn THERAPEUTICS MAYS MAYS.O 45.53 $31,108 6,632 39.8
Gap Dn OLD NATIONAL PRODUCTS RKH 54.67 $152,266 5,327 37.6
Gap Dn TELECOMMUNICATIONS TORO  JGBB.O 48.98 $172,353 3,010 31.5
5x10x20 Dn MARKET VECTORS RENMINBI BOND CHLC.K 25.07 $44,727 2,943 38.7
Gap Up BARCLAYS AMERICA  CAPE.K 78.38 $172,091 2,640 61.1
Gap Dn SPDR RUSSELL NOMURA PRIME JAPAN JPP 43.37 $483,873 2,398 42.6
5x20 Dn DENALI DNY 21.7 $73,943 2,374 34.5
5x20 Dn SOUTHERN MISSOURI BANCORP SMBC.O 36.55 $247,088 2,193 43.7
5x10x20 Dn HF2 FINANCIAL MANAGEMENT CL A HTWO.O 10.4 $434,635 2,127 49.2
5x20 Up NEWBRIDGE BANCORP CL A NBBC.O 8.5 $499,306 1,646 54.9
5x10x20 Up PROSHS ULTRSRT MSCI PAC EX JAPAN JPX 25.26 $35,152 1,500 68.1
Gap Dn IMMUNOGEN IMGN.O 6.11 $10,394,965 1,450 28.5
Gap Up DEUTSCH X TRCKS 2020 TARGET DATE TDH 28.25 $57,974 1,365 53.7
Gap Up ISHARES NORTH AMERICA REAL ESTAT IFNA.O 57.52 $199,455 1,304 59.6
Gap Up JW MAYS MAYS.O 49.1 $44,619 1,191 46.1
Gap Up ARATANA THERAPEUTICS PETX.O 16.43 $4,460,129 1,138 73.3
BB Dn CONVERSANT CNVR.O 34.44 $43,930,639 1,106 41.3
5x20 Up FATE THERAPEUTICS FATE.O 5.27 $127,751 1,074 72.2
Gap Dn ISHARES MSCI HONG KNG SMA CAP EWHS.K 26.12 $119,966 1,067 27.1
Gap Dn FINISH LINE CL A FINL.O 23.35 $18,935,184 943 26
50-day Up PHH  PHH 24.08 $13,850,492 932 60.7
Gap Up UBS ETRACS DIVERS HIGH INCOME DVHI.K 24.3 $83,745 717 34.8
50-day Up TRUSTMARK TRMK.O 24.62 $9,720,314 703 60.1
5x10x20 Dn FIRST MIDWEST BANCORP FMBI.O 16.66 $6,301,374 693 46.7
5x10x20 Up E TRACS UBS BLOOMBERG CMCI FOOD FUD 23.06 $58,438 669 53.4
Gap Up ROGERS ROG 79.15 $8,420,613 651 76.7
5x20 Up ENERNOC ENOC.O 16.27 $6,763,075 628 64.5
5x20 Dn PEOPLES FINANCIAL PFBX.O 12.65 $92,658 618 40.5
5x10x20 Dn COMPX INTERNATIONAL CIX 11.1 $68,821 613 38.4
Gap Up MADISON SQUARE GARDEN CL A MSG.O 75.07 $47,505,149 603 64
BB Dn MONARCH CASINO AND RESORT MCRI.O 15.56 $590,012 603 43.8
Gap Dn TEUCRIUM AGRICULTURAL TAGS.K 30.76 $30,176 593 42.9
Gap Dn WISDOMTREE JAPAN HEDGED RL EST DXJR.K 26.94 $486,057 572 41.4
5x20 Up BANK MUTUAL BKMU.O 6.99 $829,750 546 65.8
Gap Up NUVEEN LONG SHORT COMMODITY TOTA CTF 16.39 $2,016,967 535 80.4
Gap Dn FIRST SAVINGS FINANCIAL GROUP FSFG.O 25.75 $39,677 523 56.8
50-day Up PRETIUM RESOURCES PVG 5.9 $4,447,730 499 53.8
5x20 Up UNITED COMMUNITY BANKS UCBI.O 18.66 $4,788,995 496 59.1
Gap Up KENNEDY WILSON HOLDING 7.75% SNR KWN 25.75 $87,421 496 56.4
50-day Up CHINA XD PLASTICS CXDC.O 5.82 $619,456 494 55.4
BB Dn QR ENERGY QRE 14.35 $9,030,643 485 34.6
BB Up CYANOTECH CYAN.O 6.59 $119,143 479 62.6
5x10x20 Up PACIFIC GAS 5% 1ST RED SRS A PCG_pe 23.52 $24,067 471 48.2
BB Up JMP GROUP JMP 7.86 $854,509 450 70.8
Gap Up ISHARES MSCI QATAR CAPPED QAT.O 23.18 $460,690 450 40.6
Gap Dn WISDOMTREE JAPAN HEDGED FNCLS DXJF.K 24.45 $249,976 447 32.6
5x20 Up UNIFIRST UNF 117.26 $8,762,922 435 64.7
Gap Up ALUMINUM CHINA ADR REP 25 CL H ACH 11.55 $1,709,961 427 63.1
5x10x20 Dn EASTERN EML.O 17.45 $122,035 425 59.3
5x10x20 Dn BROWN SHOE BWS 28.79 $10,089,364 414 40.4
BB Up SPOK HOLDINGS SPOK.O 17.17 $1,244,600 410 64
5x10x20 Up SI FINANCIAL GROUP SIFI.O 11.05 $67,217 408 45.9
5x10x20 Up FIRST MAJESTIC SILVER AG 5.12 $14,175,720 406 54.3
Gap Up LEHMAN 3.50% ADJUSTABLE CORTS GO JBK 25.62 $36,742 400 70.6
5x20 Up NEWPORT NEWP.O 19 $3,496,104 399 58.7
Gap Dn SPDR S&P SMALL CAP EMERGING ASIA GMFS.K 38.21 $64,093 395 24.8
5x20 Up MB FINANCIAL MBFI.O 32.29 $11,882,819 381 59.8
5x10x20 Dn FIRST BANCORP FNLC.O 17.63 $288,690 379 49.4
Gap Up MARINE HARVEST ADR REP 1 MHG 13.96 $1,908,952 376 49.5
Gap Up ISIS PHARMACEUTICALS ISIS.O 65.09 $173,317,421 360 70.4
5x20 Dn FOOT LOCKER FL 53.86 $140,837,571 359 40.8
Gap Up MITTS LINKED TO THE D J INDUSTRI DFF 18.23 $49,147 356 55.9
Gap Up PROSHARES ULTRA MSCI EAFE EFO 98.5 $1,846,161 353 48.5
BB Dn SANMINA SANM.O 22.87 $18,075,621 352 40.3
50-day Up ENGILITY HOLDINGS EGL 40.96 $5,032,990 351 49.9
5x10x20 Dn DIODES DIOD.O 26.65 $7,407,206 346 52.8
Gap Up RBS GLOBAL BIG PHARMA DRGS.K 53.37 $47,202 311 55.1
5x20 Up PRIVATEBANCORP PVTB.O 33.26 $19,490,449 302 61.6
5x20 Up RETAILMENOT SRS 1 SALE.O 14.99 $19,290,631 300 54.8
5x20 Dn GUGGENHEIM CURRENCY SWISS FRANC FXF 99.12 $1,238,409 299 37.7
5x20 Up CHASE  CCF 35.75 $320,590 293 55.5
5x20 Up MS MARKET VECTORS DOUBLE SH EURO DRR 48.41 $450,147 285 60.2
50-day Up ALEXANDER AND BALDWIN ALEX.K 40.5 $9,176,035 283 65.6
Gap Dn SENECA FOODS CL B SENEB.O 30.9 $45,170 279 48.5
5x20 Up INNOPHOS HOLDINGS IPHS.O 57 $10,095,946 275 59.7
5x20 Up BANC OF CALIFORNIA BANC.K 11.51 $2,106,161 274 59.9
5x20 Up OLYMPIC STEEL ZEUS.O 18.17 $1,055,477 268 58.5
5x20 Up BANNER BANR.O 42.5 $3,502,120 263 53.4
5x10x20 Dn NETGEAR NTGR.O 35.31 $8,314,371 260 55.2
Gap Up POWERSHARES FUND EMG MKTS DEBT PFEM.K 20.34 $31,108 257 47.7
5x10x20 Up NATIONAL GENERAL HOLDINGS NGHC.O 18.91 $2,723,143 256 55.3
5x10x20 Up DILLARDS CAP TRUST I 7.50% CAP  DDT 26.07 $115,413 255 61.7
5x20 Up PRIMERICA PRI 54.24 $14,442,025 255 60.1
5x20 Up UMH PROPERTIES  UMH 9.6 $749,923 253 53.8
Gap Dn SPDR WELLS FARGO PREFERRED STOCK PSK 43.35 $1,322,628 250 28.7
5x20 Up MCCORMICK MKC 76.29 $47,817,232 240 71.4
50-day Up ASTEC INDUSTRIES ASTE.O 38.33 $3,436,985 239 51.5
5x20 Up GENCORP GY 17.51 $7,960,882 238 59.2
5x10x20 Up CASCADE BANCORP CACB.O 5.17 $405,829 237 63.4
5x10x20 Dn WR BERKLEY WRB 50.52 $29,973,493 233 47.5
5x20 Up PIKE  PIKE.K 12 $3,006,106 232 61.1
5x10x20 Dn ENBRIDGE ENERGY PARTNERS CL A EEP 38.49 $50,855,008 228 51.1
5x20 Up CBS CL A CBSa 57.06 $414,361 228 64.2
Gap Up COLUMBIA LARGE CAP GROWTH RPX 45.05 $68,238 227 60.5
5x20 Up OCEANFIRST FINANCIAL OCFC.O 17.23 $589,358 226 60.9
Gap Dn MRKT VCTS MSCI EMRG MRT QLTY DIV QDEM.K 46.52 $77,263 224 27.6
StepsDn UP MGP INGREDIENTS MGPI.O 15.4 $922,066 222 59.5
Gap Up PUMA BIOTECHNOLOGY PBYI.K 221.3 $66,815,497 218 54.9
5x10x20 Dn UNVL HEALTH RTY  UHT 47.79 $2,341,565 215 49.4
5x20 Up AMERICAN STATES WATER AWR 35.44 $5,838,980 213 57
Gap Dn SPDR MSCI EM BEYOND BRIC EMBB.K 57.35 $94,344 211 34.3
5x20 Up COHU  COHU.O 11.88 $1,360,697 208 56.1
BB Up EPIQ SYSTEMS EPIQ.O 16.7 $2,254,705 206 56.8
5x20 Up SHENANDOAH TELECOMMUNICATIONS SHEN.O 31.44 $2,667,333 205 61.2
5x20 Up EBIX  EBIX.O 16.73 $5,503,905 204 64
50-day Up TORO  TTC 62.26 $11,418,963 204 47.6
Gap Up LIBERTY MEDIA SRS B LMCB.O 34.76 $48,787 203 30.8
50-day Up WEYCO GROUP WEYS.O 28.32 $376,334 202 54.8
50-day Up STANDEX INTL SXI 76.93 $3,976,350 202 56.5
5x20 Up CONSOLIDATED TOMOKA LAND CTO 53.5 $585,671 198 52.2
Gap Up SPDR MORGAN STANLEY TECHNOLOGY MTK 101.69 $439,426 197 61
5x10x20 Dn ANACOR PHARMACEUTICALS ANAC.O 33.41 $18,078,698 192 52.8
5x20 Up SUPREME INDUSTRIES CL A STS 7.98 $164,631 191 68
Gap Up DIREXION KOREA BULL 3X SHARES KORU.K 33.7 $87,585 188 45.6
5x10x20 Up AMERICAN PUBLIC EDUCATION APEI.O 35.5 $5,555,812 188 61.1
50-day Up INSTEEL INDUSTRIES IIIN.O 23 $1,293,773 182 52.8
5x10x20 Dn CABLEVISION SYSTEMS CL A CVC 20.1 $59,764,033 182 54
50-day Dn WISDOMTREE CHINA DIVIDEND EX FIN CHXF.O 51.3 $145,201 181 46.2
50-day Up EMCOR GROUP EME 43.81 $15,489,367 178 52.6
5x20 Up EL PASO ELECTRIC EE 38.87 $8,238,432 178 61.1
5x20 Up WINTRUST FINANCIAL WTFC.O 46 $8,764,191 176 55.7
5x20 Up CHEMICAL FINANCIAL CHFC.O 30.18 $2,520,440 175 61.1
5x20 Up LEGGETT & PLATT LEG 42.06 $49,167,188 175 62.9
BB Up OREXIGEN THERAPEUTICS OREX.O 6.33 $23,745,325 173 66.8
BB Up EXTENDED STAY AMERICA STAY.K 19.28 $13,123,616 168 53.1
5x20 Up IXIA  XXIA.O 10.59 $4,845,305 167 59
5x10x20 Dn SILICON LABORATORIES SLAB.O 46.43 $16,468,150 166 56.5
5x10x20 Up HAWAIIAN TELCOM HOLDCO HCOM.O 26.8 $1,184,762 166 58.4
Gap Up PIER 1 IMPORTS PIR 15.18 $33,786,558 165 76
Gap Up PROSHARES ULTRA RSL 2000 GROWTH UKK 104.52 $132,479 165 62.9
Gap Up ISHARES MSCI USA ESG SELECT KLD 87.16 $1,124,653 163 61.8
50-day Dn FBR  FBRC.O 24.85 $1,608,703 163 47.1
50-day Up KYTHERA BIOPHARMACEUTICALS KYTH.O 35.69 $7,519,685 161 49.2
5x20 Up BOSTON PRIVATE FINANCIAL HOLDING BPFH.O 13.26 $5,683,492 160 55.5
50-day Up CONNECTICUT WATER SERVICE CTWS.O 35.91 $920,237 160 59.3
5x20 Up BADGER METER BMI 56.17 $2,747,631 159 54
50-day Up AMERICAN SCIENCE AND ENGINEERING ASEI.O 50.83 $2,887,125 157 56.1
5x20 Up FIRST FINANCIAL BANCORP FFBC.O 18.42 $4,344,477 157 61.1
5x20 Up SENSIENT TECH SXT 61.15 $12,103,952 152 65.5
5x20 Up OLD NATIONAL BANCORP ONB.O 14.68 $9,825,400 152 55.7
5x10x20 Dn DONEGAL GROUP CL A DGICA.O 15.49 $288,389 151 47.2
5x20 Up DESTINATION XL GROUP DXLG.O 5.2 $601,334 151 54.5
5x20 Up GENERAL CABLE BGC 14.97 $14,867,366 150 60.1
Gap Dn IPATH GEMS ASIA 8 AYT 43.21 $296,817 150 31.2
5x10x20 Up FARMER BROTHERS FARM.O 30.11 $1,243,917 149 60.1
5x10x20 Up MARINE PRODUCTS MPX 7.57 $163,057 148 63.4

Alerts in the StockAlerts System

Currently, the following alert signals are included in a StockAlerts subscription.  The alert signals do not come with charts.  Subscribers get lists similar to the above table.  Lists have a maximum of 90 stocks (those with the greatest surge in volume on the day of the alert).  At any given time, there may not be any stocks generating a particular kind of alert.  The signals generated are not recommendations to buy or sell.  We simply report the output of various search algorithms.  Even if an alert is triggered, a careful analysis of the chart may reveal that there is significant resistance just above the current price.  If there is no strong resistance that must be overcome, stocks highlighted with an alert signal can be considered for inclusion in a "watch list" and monitored to see if an appropriate follow-through signal occurs.

The "UP" and "DN" alerts described below do not necessarily indicate that a stock has started to rise...yet.  For example, an "UP" signal is an ALERT that a rise has begun or that the setup is nearly complete that could result in a rise soon.  In other words, it is merely intended to be an attention grabber that draws your focus to a potential move and the probable direction of that move.  Our system currently generates the following information and alerts.  First we will show a chart, and then we will describe the alert.

This Chart Illustrates The HIGH DN & UP System.

HIGH DN & UP System (The "StepsDn UP" Alert in the table above).  If a stock is at a new recent high that the stock has not seen for at least 6 months (for example, see the white arrow in the chart) and then "stair-steps" its way down with each successive high lower than the previous high (as between the white and blue arrows), an alert is generated when a high occurs that is higher than the previous day's high (the day after the day marked by the blue arrow).  See if volume declined as the stock fell and increased on its rise.  Declining volume on the price decline shows that it is probably only some profit taking rather than panic selling.  The thinking behind this alert is that the stock has been strong and climbing to new highs.  Then a wave of profit-taking set in that caused the stock to decline.  After that, new buyers take positions and the stock resumes its climb as the demand for the stock once again overwhelms the supply provided by the sellers.  Swing traders like to buy the day after the blue arrow (just above $75 in the chart) and hold for the surge in price that follows (up to about $95 in this case).  Then they sell and look for other opportunities.  The gains on such moves tend to be huge relative to the time invested.  No "DN" alerts are generated.

This Chart Illustrates The

GAP System ("Gap Up" and "Gap Dn" alerts in the above table).  If a stock gaps or makes an aggressive move so that its low for the day is at least .25 above the previous day's high and if volume rises at least 50%, then an "UP" alert is generated.  We had been requiring a .15 gap and a smaller volume surge.  However, market conditions were such that too many meaningless gaps were signaled.  The reverse conditions will trigger a "DN" alert.  Expect a little pullback or consolidation shortly after such moves.  In the above chart, a little consolidation takes place at $24 before the next surge.  Also, be wary of overhead resistance nearby.  That is, if there is overhead resistance just above the gap price, "Walk away."  

This Chart Illustrates The Buying Support Near A Rapidly Rising 50-Day Moving Average When It is Approached From Above The Average..

NEAR 50-Day moving average (dotted black line). If the stock’s 50-day SMA (simple moving average) is rising at a good rate (we measure the daily rate of change for the average) and the stock declines to a point that is or was near it within the last 3 days and is now rising (but was recently declining), an "UP" signal is generated (the "50-day Up" alert in the above table). Institutional investors tend to be buyers of a stock when it declines to its 50-day moving average.  Therefore, the 50-day SMA will often offer support for a stock.  Traders monitor such stocks to see if they begin to climb again when they touch or come close to this average.  If the stock "jumps" on increasing volume, traders consider it a buy signal.  If it does not rise after touching this average, the stock is not getting the expected support.  This is a warning of possible trouble ahead. 

This Chart Illustrates The Selling Pressure As A Stock Nears The 50-Day Moving Average From Below The Average.

Near 50-day moving average (with average declining rapidly).  This is a pattern attractive to short sellers.  This setup is the reverse of the conditions in the previous chart, and these conditions will trigger a "DN" alert (this is the "50-Day Dn" alert).  Here, the rapidly declining 50-day SMA (dotted black line) acts as resistance that turns the stock down each time it "tries" to rise.  Our StockAlerts system flagged this stock with "Dn" alerts as it approached the 50-day moving average from below.  Those alerts would have been very helpful to a short seller.  However, now that the stock has risen above the 50-day average, short sellers will not have much interest in the stock.  [Additional comments: A beginning trader might look at the last days of this chart and conclude that it is a good time to buy.  However, notice the resistance where we drew the blue line.  When the stock was above the line, that line acted as support.  Once the stock plunged below the line on heavy volume, the line became resistance.  Therefore, we would reject the stock as a buy candidate.  We would not be interested in this stock unless it managed to move above that line, preferably on a surge in volume.  We might even wait for the stock to test the support of that line after it climbs above it.  As it is, we think the highest probability scenario is for the stock to continue consolidating below that blue line a little longer.  We would look for a pattern in which volume increases as the stock rises and declines as the stock falls.  Then, a surge in price through that blue line on a surge in volume would be of interest to us.]

This Chart Illustrates The Bollinger Band Squeeze Alert and Subsequent Surge In Price.. 

BOLLINGER BAND SQUEEZE (the "BB Up" and "BB Dn" alerts in the above sample table).  A period of low volatility often precedes a strong move by a stock.  The ensuing move may be a downward thrust or an upward thrust.  Traders monitor stocks that have a Bollinger band squeeze (showing that the stock is experiencing a period of low volatility), waiting to see if the expected breakout is to the upside or downside.  A "squeeze" is taking place when the upper and lower Bollinger bands are close to each other relative to their recent separation (in the above image, the Bollinger bands are the lavender lines that envelop the stock's price pattern).  After a squeeze, a thrust above the upper Bollinger band is seen as bullish and a thrust below the lower Bollinger band is seen as bearish.  If the stock thrusts above the upper Bollinger band, the "UP" signal is generated.  If the stock thrusts below the lower Bollinger band, the "DN" alert is generated.  Because what constitutes a good Bollinger band squeeze is relatively subjective, we add the following notes. 

1. Sometimes, our way of looking at a chart convinces us that a squeeze has not taken place even though it has.  For example, we tend to view magnitude of separation by noting distance between bands along a line like the green dashed line in the chart below.  That is, they make the mistake of comparing the distance along the green line with the distance along the vertical blue line, and deciede that not much of a squeeze has occurred.   Instead, they should compare the black vertical line with the blue vertical line.  The length of the green line may even be less than the length of the blue line at the same time the length of the black vertical line is two or three times the length of the vertical blue line.  The spread between the Bollinger bands at specific points in time is given in the chart below by the black line and the blue line, not by the green line. The green line is not determined at a single point in time.  Therefore, the correct procedure is to draw vertical lines at the two dates of comparison and note the difference in their lengths.

Bollinger Band Squeeze

2. The scanner is intended to cut down on the number of stocks we have to review, but we don't want it to do our thinking for us.  The user has an opportunity to examine the squeeze relative to a stock's squeeze pattern and relative to the current context.  There are hundreds of stocks that penetrate a band without any squeeze (this is what you get at other Web sites).  A band penetration without a previous squeeze is nearly meaningless.  With this filter, we are provided with a handful of stocks to review (the best candidates) rather than hundreds (most of which are of no interest at all).  Of the relatively small list we get we will reject a few because the squeeze or context is not acceptable (for us).  

3. Some signals are generated even though the first band penetration did not just take place but took place several days ago.  If the bands still have narrow separation relative to the average separation before the squeeze, we are still interested in reviewing them. 

4. A squeeze does not have to last for a week, a month, or any other set period to mean a squeeze has taken place.  If the two bands narrow their separation for even a day, that is a squeeze.  Why?  the Bollinger band equations are based on a 20 day measurement.  When a squeeze is registered, it is based on data covering 20 days and is plotted on a chart relative to the period before that.  Some traders consider only squeezes that have lasted for at least one or two weeks to be worth while.  Others consider any squeeze to be worth while.  Rather than filter out all squeezes that have lasted less than several weeks, we have decided to show even those of short duration so that subscribers can decide for themselves which are actionable.  Our own traders have had great success acting on very short-term squeezes.  Of course, the context of a squeeze is extremely important. 

5. The standard approach is to look for squeezes in which the band separation is less than at any time in the previous 6 months.  We focus more on the amount of squeeze that is taking place rather than how long it has been since band separation has been that small.  The latter will flag stocks with the slightest contraction in band separation if the separation between the bands is the narrowest it has been for 6 months.  It is our experience that very good alerts can be based on a significant narrowing of band separation, regardless of how long it has been since the last separation of comparable magnitude.  Rather than have the computer automatically eliminate stocks that have had a greater squeeze within the last six months, we want to examine the patterns for ourselves.  We really don't care very much if there has been a tighter squeeze within the last 6 months.  We have found that sufficiently tight squeezes (regardless of how long it has been since the last tighter one) are well worth our attention.

6. The alert is given if there has been a Bollinger Band squeeze and the closing price is above the upper band or below the lower band. It does not require that the penetration be the first penetration. If the squeeze is still relatively tight and there is a band penetration for 5 days in a row, then each of those days would result in an alert if the scan were conducted each day. Therefore, you will see some stocks listed for which a band has been penetrated one or more times already. However, if the bands are still in a squeeze pattern, those stocks are still of interest. Hence, they are reported. It is a simple matter to loosen or tighten the squeeze parameters, and we will make such adjustments as the need arises (or if enough subscribers express a desire for a similar type of modification).

This Chart Illustrates The Donchian Buy And Sell Signals (See The Arrows)

 Richard Donchian's 5x20 Dual Moving Average Crossover System (a variation).  If the 5-day MA (moving average) crosses from below to above the 20-day MA, if both moving averages are currently rising, and if the 3-day moving average of the volume is greater than the 30-day moving average of the volume was before the last 3 days, an "Up" alert is triggered (the "5x20 Up" alert).  The opposite conditions with an increase in volume triggers a "Dn" alert (the "5x20 Dn" alert).  

 This Chart Illustrates The signals of the 5x10x20 Triple Moving Average System.

5x10x20 Triple Moving Average Crossover System (a variation on R.C. Allen's 4x9x18 system).  Our tests on thousands of stocks over many years and under a variety of market conditions has convinced us of the power of this system. If the 5-day moving average is above the 10-day moving average and the 20-day moving average, and the 10-day moving average has just crossed from below to above the 20-day moving average, a "5x10x20 Up" alert is displayed.  If the 5-day moving average crosses below the 10-day moving average and the 20-day moving average, and the 10-day moving average has just crossed from above to below the 20-day moving average, a "5x10x20 Dn" alert is displayed (see the sample table above).  Our lists of alerts also show the 1-day percentage change in volume for all stocks generating an alert.  Each of the alerts also includes a 14-day RSI reading. 

Note: R.C. Allen's original 4x9x18 system is available as a separate subscription, and is not included with StockAlerts

StockAlerts is also attractive because... 

Our StockAlerts subscription costs less than the price of a subscription to the average monthly stock market newsletter.  On January 22, 2001, Money reported on a survey it made of 61 market letters.  The average annual subscription price for these newsletters was $220.46.  In most newsletters, the author states that he or she thinks a particular stock should perform well over the next year.  This is an opinion.  It may take the stock six months before it even begins to make a move.  StockAlerts, on the other hand, lists stocks that have just triggered an alert (this is a fact, not an opinion).  If there is follow through, it will be evident shortly (usually within 2 weeks).  You will not have to wait for a year to see if it performs as expected.  This should make it easier to find stocks that satisfy the particular requirements of your own discipline.  You have our permission to print your own hard copy of the lists from this Web site (for your own personal use only).   

A variety of alerts based on different pre-surge conditions is more likely to provide some worthy candidates for your watch list.  The kind of "setup" that produces the best candidates varies over time with changing market conditions.  For example, gap alerts may yield the most attractive candidates at one time, but Bollinger Band squeeze alerts may yield the most attractive candidates at another time.  In other words, at any given time, a particular alert system may not yield many attractive candidates but may do so at another time.

The following table shows the twelve stocks listed at the bottom of the list subscribers get.  Subscribers get up to 150 top-ranked out of about 8000 stocks.  These are the entries starting at the 138th position on their list.  The higher on a list a stock is, the more likely the significance of the alert, and the more likely it is that the stock will follow through with the expected action (but there are no guarantees it will happen).  Even so, the following stocks came from a very select group taken from a very large database.  The list is intended to be a kind of "teaser" to entice you to subscribe. 

The Minimum Volume Surge Required for This Scanner's List Was Equal to  0
Alert Updated Fri p.m. After Close    04/17/2015Sym Price Av. $/Day    Vol Ch%RSI
Gap Dn SPDR S&P TRANSPORTATION XTN 102.60 $7,000,875 111.29 38.66
5x10x20 Dn CSS INDUSTRIES CSS 28.51 $571,449 110.50 40.84
5x10x20 Up FLUIDIGM FLDM.O 43.97 $8,517,006 108.49 57.59
5x20 Up GOLDMAN SACHS GROUP 6.125% GSF 25.98 $1,441,072 107.81 58.88
5x10x20 Dn ELECTRONIC ARTS EA.O 56.03 $168,856,840 107.64 44.88
5x10x20 Up OPOWER OPWR.K 10.56 $3,172,924 106.60 48.12
Gap Dn GUGGENHEIM CHINA SMALL CAP HAO 32.34 $4,974,940 105.68 68.17
Gap Dn PROSHARES ULTRAPRO QQQ TQQQ.O 103.79 $268,895,291 104.64 45.47
5x10x20 Dn AVENUE INCOME CREDIT STRATEGIE ACP 15.16 $752,924 104.61 50.22
Gap Dn ZUMIEZ ZUMZ.O 32.77 $8,872,680 104.30 25.87
5x20 Up BOISE CASCADE BCC 38.53 $18,817,057 104.06 59.94
5x10x20 Dn PEOPLE BANCORP PEBO.O 23.01 $1,586,852 104.05 40.61

See a list of the stocks we scan for our reports.

For a brief summary of the main features and an opportunity to place an order, click on the word "Summary" in blue text. Summary

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