Summary
Highlights
Before diving into Finviz, it's crucial to analyze the broad market trends and patterns. The S&P index shows a bullish pullback pattern, dropping between the 9-period and 20-period moving averages. Analyzing sectors helps identify opportunities; for example, basic materials are on sale, communication is in a pullback, energy (especially nuclear) is breaking out, and technology mirrors the S&P's pullback. Tech, energy, and communication are currently the top sectors of interest for swing trading.
Begin by accessing the Finviz screener. The first filter to apply is 'Optionable and Shortable' to ensure flexibility in trading strategies. This immediately reduces the number of candidates from over 10,000 to around 5,500. Next, set the 'Average Volume' to 'Over 1 Million' to avoid illiquid stocks, further narrowing the list to about 2,200. Then, filter 'Price' to 'Over $10' to eliminate penny stocks, bringing the count down to approximately 1,600. Finally, set 'Relative Volume' to 'Over 1' to identify stocks with higher-than-average current activity, resulting in about 645 candidates.
After the descriptive filters, move to the technicals. To find stocks in an uptrend, apply three moving average filters: 'Price Above 200-Day Simple Moving Average', 'Price Above 50-Day Simple Moving Average', and 'Price Above 20-Day Simple Moving Average'. These three filters combined further reduce the candidate list to around 267, indicating a strong bullish trend. These seven core filters are essential for efficient swing trade scanning.
From the filtered list, you can add fundamental filters like 'Earnings Growth' to find financially strong companies, or focus on specific sectors identified in the market analysis. For instance, filtering by the 'Technology' sector can narrow the list to a manageable number for deeper review. The 'Signal' feature can identify top gainers or stocks with recent news catalysts, like Nvidia or Intel. Using the 'Charts' view helps visualize patterns such as high basing or cup and handle formations, indicating potential breakouts. Nvidia and Taiwan Semiconductor are examples of stocks with favorable chart patterns for potential trades.
The video highlights several potential trade setups. Albemarle (ALB) shows a wedge pattern near resistance, indicating a potential breakout. Cameco (CCJ) exhibits a bullish kicker candle after retesting a new high. Constellation Energy (CEG) is forming a large cup and handle pattern. Google (GOOG) and Taiwan Semiconductor (TSM) present clear pullback patterns matching broad market trends, making them strong candidates. It's crucial to understand systematic approaches, clear entry and stop-loss criteria, profit targets, and appropriate position sizing for effective risk management before executing any trades.