Self Directed Investor Inc
SDI: "Empowering investors with ideas and education"
Symbol Lookup »  
Topics:ChinaETFsEarningsEconomyEnergyForexGoldIncomeLessonsIdeasTrading

  • Other news: News from PR Newswire
| More

February 25 Top 5 Stocks Most Extended from 200d SMA Scan

Mon, Feb 25, 11:12 AM ET, by Corey Rosenbloom

For this month’s update of the “Top Five S&P 500 Stocks Most Extended from their 200 day SMA,” we have two very popular stock names on opposite sides of the scanning results.

After a stellar reversal and strong rally, Netflix (NFLX) takes the top over-extended spot while Apple (AAPL) makes its debut in the top under-extended list.

Let’s take a look at the other stocks that made the list and what opportunities these stocks may provide.

The Top SP500 Overextended Stocks above their 200 day SMA:

It’s not often that we see stocks more than 100% above their 200 day moving average but Netflix (NFLX) accomplished this feat after a late 2012 reversal.

It took almost a full year to carve out a classic and beautiful “Rounded Reversal” pattern through 2012 and we see the outcome of the successful reversal.

Aggressive traders – especially those with longer time horizons – look to accumulate shares gradually over time as a stock is ‘carving out’ a bottoming pattern especially with divergences present.

Conservative traders, or those with shorter time horizons, tend to wait to join trends in motion on breakouts or retracements (like flag trades or pullbacks to rising moving averages).

In fact, that’s exactly how you can use a simple stock screen like the overextended scan:

Some traders prefer reversal strategies and will note that overextended stocks in mature will eventually reverse and they want to play for that elusive top or bottom; however, other traders who prefer pro-trend strategies (trading breakouts and retracements) will use this list as a starting point to locate current or future retracement opportunities.

A sharp retracement currently occurred in the #4 overextended stock, Valero Energy (VLO):

I also highlighted two prior lengthy ‘retracements’ that took the form of larger bull flags or “AB=CD” Measured Move patterns.

Tesero (TSO), the 5th most overextended stock, shows a very similar structure and pattern as Valero (VLO) – both are in the Basic Materials sector.

While the market has been in a persistent uptrend, not all stocks have been able to participate to the upside.

The next list reveals the Top 5 Stocks Most Extended Beneath their 200 day Moving Average:

In my prior update from November, Cliff’s Natural (CLF) made the list though it traded at $35 at that point.

The stock tops the “Most Under-extended Stock” at the moment, down to the current $26.60 level.

Cliff’s stock shows a good example of how best to use this type of scan.

Aggressive reversal traders could have seen the over-extension as a chance to ‘fade’ the trend and the stock price rallied in a counter-trend retracement toward the $40 level.

At this point, pro-trend traders would have avoided the stock from the short or long side, but kept it on their watch-list waiting to trade a pullback or retracement against the downtrend.

As mentioned, the retracement occurred and the stock began trading lower from the $40 level, ending with a negative momentum and volume divergence as the $40 print occurred in early January.

It took a month, but the stock did continue the downtrend and currently made new lows and again the top spot on the most under-extended list. The same logic would apply here.

Top stock Apple (AAPL) has been downtrending since the weak and divergent peak into $700 in September.

Ever since price broke under the rising (and pro-trending) 200 day SMA, there have been at least four retracement or “flag” opportunities to swing-trade the stock short from the falling 50 or 20 day EMA.

The $440 level has held resilient and again ‘fade’ or reversal traders have a chance to play off potential support while pro-trend retracement traders will likely look for any future retracement to enter (the last opportunity triggered at $480).

Similarly, Apollo Group (APOL) was the #2 most under-extended stock in November and it remains at the #2 spot for the February update.

Keep in mind that low-priced stocks like Advanced Micro (AMD) can distort the percentage value and may not be suitable or tradable candidates compared to higher priced stocks with cleaner patterns (or that are not as distorted by sudden price gaps).

Whether you are a trend follower or trend fader, you can use these scans and similar “extended-stock from moving average scans” to find candidates that you may otherwise not locate.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey's new book The Complete Trading Course (Wiley Finance) is now available!

blog.afraidtotrade.com


SDI Glossary: "CD" Definition
SDI Glossary: "price" Definition
SDI Glossary: "Finance" Definition
SDI Glossary: "Stock" Definition
This Article's Word Cloud:   Cliff   Corey   Most   Stocks   afraidtotrade   again   average   been   candidates   extended   from   future   have   level   like   list   locate   look   made   month   most   moving   occurred   opportunities   over   overextended   pattern   point   price   prior   retracement   retracements   reversal   spot   stock   stocks   that   their   these   this   time   took   traders   trend   under   update   very   will   with   would

| More

Quirks and Reversals in the Quad Market Grid Gold Oil Dollar
Fri, Jul 29, 12:31 PM ET, by Corey Rosenbloom

The weaker than expected GDP report this morning spiked volatility higher in our quad-market grid. ...

GDP Surprise Breakout from Emini Range July 29
Fri, Jul 29, 12:21 PM ET, by Corey Rosenbloom

A weaker than expected GDP report this morning was exactly the bullish catalyst needed to ...

The Seriously Strong Uptrend and New All Time High for Facebook FB
Thu, Jul 28, 1:21 PM ET, by Corey Rosenbloom

“Strong stocks tend to get stronger.” Facebook (FB) shares gave us another example of this ...

The Not New Same Emini Fibonacci Levels in the Range Update July 28
Thu, Jul 28, 1:11 PM ET, by Corey Rosenbloom

With the Fed NOT raising rates as expected, price responded with little fanfare – or ...

The Fed Does Nothing but Keep the Current Range Going
Wed, Jul 27, 3:31 PM ET, by Corey Rosenbloom

As widely expected, and with little fanfare, the Fed did absolutely nothing today except keep ...

Fed Day Emini Fibonacci Pullback Grid July 27
Wed, Jul 27, 12:11 PM ET, by Corey Rosenbloom

The Fed won’t raise rates later today at their meeting, and the market could rally ...

Triangle Midday Market Update and Stock Scan July 26
Tue, Jul 26, 4:11 PM ET, by Corey Rosenbloom

Today’s market activity was a volatile, big swing event that resulted in an intraday triangle ...

Down Goes McDonalds MCD July 26
Tue, Jul 26, 10:41 AM ET, by Corey Rosenbloom

McDonald’s (MCD) gives us another example of what can endlessly frustrate new traders. Beating earnings, ...

Same Pullback Same Emini Fibonacci Grid Plan July 25
Mon, Jul 25, 12:21 PM ET, by Corey Rosenbloom

We start the new week with clear echoes to last week. Namely, we’re still trading ...

Down Drips Crude Oil to New Swing Lows July 22
Fri, Jul 22, 2:15 PM ET, by Corey Rosenbloom

In a somewhat surprising outcome, Crude Oil dips to a new swing low at the ...

Yahoo YHOO Surprises with Bullish Breakout into Open Air
Fri, Jul 22, 12:35 PM ET, by Corey Rosenbloom

As the stock market bull continues, we continue to see stocks breakout to new highs. ...

The Raging Bull Continues Emini Grid Update July 22
Fri, Jul 22, 12:15 PM ET, by Corey Rosenbloom

Bear? What Bear? Are there any bears left in the world? Price retraced toward, then ...

Might This Be the Actual Pullback Emini Fibonacci Grid July 21
Thu, Jul 21, 2:15 PM ET, by Corey Rosenbloom

Is this our first actual pullback since the early July breakout?! Here’s today’s updated Fibonacci ...

Neverending Bull Market Breakout and Stock Scan July 20
Wed, Jul 20, 3:55 PM ET, by Corey Rosenbloom

Buyers continued to short-squeeze the market through to new all-time highs! Let’s update our levels ...

Market Cap by Sector Stock Visualization
Wed, Jul 20, 10:18 AM ET, by Corey Rosenbloom

Which stocks in which sectors have the largest (smallest?) Market Cap? Let’s take a look ...

Apple AAPL Sneaks Back to 100 Per Share
Tue, Jul 19, 11:55 AM ET, by Corey Rosenbloom

If you haven’t been watching, Apple (AAPL) quietly traded back to the $100 per share ...

July 19 Same Shallow Emini Fibonacci Retracement Grid
Tue, Jul 19, 11:46 AM ET, by Corey Rosenbloom

Until we get a deeper pullback in the market, we’ll have to turn our focus ...

New Short Term Emini Fibonacci Retracement Grid July 18
Mon, Jul 18, 12:55 PM ET, by Corey Rosenbloom

Until we get a deeper pullback in the market, we’ll have to turn our focus ...

Pullback or Another Head Fake Emini Planning Grid July 15
Fri, Jul 15, 1:55 PM ET, by Corey Rosenbloom

“Fool me once, shame on you. Fool me twice, shame on me.” That’s exactly how ...

Nonstop Bullish March Update and Stock Scan July 14
Thu, Jul 14, 3:25 PM ET, by Corey Rosenbloom

Buyers continued to short-squeeze the market through to new all-time highs! Let’s update our levels ...

Strong Stock YUM Brands Breaks to New Highs
Thu, Jul 14, 12:15 PM ET, by Corey Rosenbloom

We look for “strong stocks getting stronger” because they offer better chances of profiting from ...

Now We Can Use our New Emini Fibonacci Grid July 13
Wed, Jul 13, 2:15 PM ET, by Corey Rosenbloom

Retracement grids don’t help us when the market is breaking higher and NOT retracing! However, ...

The Top Ten Stocks Breaking with the Market to New Highs
Mon, Jul 11, 12:11 PM ET, by Corey Rosenbloom

We believe you should focus your swing trades (and longer-term investments) in “strong stocks getting ...

Extended Breakout Emini Fibonacci Grid July 11
Mon, Jul 11, 11:51 AM ET, by Corey Rosenbloom

A better than expected Jobs Report Friday and stimulus optimism set the stage for a ...

Big Jobs Breakout Market Update and Stock Scan July 8
Fri, Jul 8, 4:55 PM ET, by Corey Rosenbloom

Jobs are expanding everywhere! That’s the take-away from the stock market today to the better-than-expected ...

Good Jobs Report Extends our Emini Fibonacci Grid
Fri, Jul 8, 2:15 PM ET, by Corey Rosenbloom

A better than expected Jobs Report this morning set the stage for a breakout beyond ...

Reversal Market Update and Stock Scan of the Day July 7
Thu, Jul 7, 3:25 PM ET, by Corey Rosenbloom

We’re seeing a slight Bull Trap and continuation of our higher frame range for the ...

July 7 Short Squeeze Emini Fibonacci Level Update
Thu, Jul 7, 12:15 PM ET, by Corey Rosenbloom

Price reversed strongly off the 2,070 @ES level and now trades down from our 2,100 ...

Ten Strong Stocks Making New 52 Week Highs Today
Wed, Jul 6, 12:45 PM ET, by Corey Rosenbloom

It’s not just Amazon.com (AMZN) that’s breaking to new 52-week highs today. Let’s take a ...

Surprising New Highs in the Uptrend for Amazon AMZN
Wed, Jul 6, 11:25 AM ET, by Corey Rosenbloom

If you’re a casual observer, it might be surprising that any stock could be making ...

July 6 Volatile Range Emini Fibonacci Update
Wed, Jul 6, 11:15 AM ET, by Corey Rosenbloom

Our expected retracement continues with a break under our first Fibonacci Support Target. Here’s today’s ...

Retracing Market Update July 5 and Big Stock Scan
Tue, Jul 5, 2:51 PM ET, by Corey Rosenbloom

We’re seeing a logical sell-swing retracement in the market to a key target level. Let’s ...

July 5 Expected Emini Retracement Fibonacci Grid
Tue, Jul 5, 12:11 PM ET, by Corey Rosenbloom

With negative divergences into a resistance target, we’re seeing a logical retracement down in the ...

Make or Break Support Bounce in Goldman Sachs GS
Fri, Jul 1, 1:55 PM ET, by Corey Rosenbloom

With the Brexit chaos, shares of Goldman Sachs (GS) plunged to a critical support level ...

July 1 New Month Emini Fibonacci Grid Morning Update
Fri, Jul 1, 12:25 PM ET, by Corey Rosenbloom

Believe it or not July begins afresh today. Here’s today’s updated Fibonacci and Emini (@ES) ...

June 30 Brexit Never Happened Emini Fibonacci Update
Thu, Jun 30, 12:15 PM ET, by Corey Rosenbloom

We’re collectively waking up to a dream where the Brexit happened but in the real ...

June 29 Bullish Surge Emini Fibonacci Update
Wed, Jun 29, 12:11 PM ET, by Corey Rosenbloom

We’re nearing our 61.8% Fibonacci Target rapidly on our Emini grid. Brexit? What Brexit? Here’s ...

Bouncing Market Update and Stock Scan for June 28
Tue, Jun 28, 4:11 PM ET, by Corey Rosenbloom

What goes down must eventually come back up in the market. Yesterday we saw additional ...

June 28 Bounceback Emini Fibonacci Target Update
Tue, Jun 28, 11:41 AM ET, by Corey Rosenbloom

The Daily Chart traded all the way down to our 38.2% Fibonacci Target and bounced ...

Charting Risk On and Risk Off with Utilities XLU and Financials XLF
Mon, Jun 27, 1:11 PM ET, by Corey Rosenbloom

When we’re talking about “Risk-On” or “Risk-Off” Money Flow in the market, there’s many ways ...

Down Goes Delta DAL on Weekly Reversal
Mon, Jun 27, 11:21 AM ET, by Corey Rosenbloom

Delta Airlines (DAL) shares reversed their uptrend into a downtrend on the weekly frame as ...

Expanded Emini Fibonacci Grid after Crash June 27
Mon, Jun 27, 11:11 AM ET, by Corey Rosenbloom

The Brexit Fall-out continues in equity markets including our own S&P 500. Let’s expand our ...

Brexit Aftermath Market Update and Big Stock Scan June 24
Fri, Jun 24, 2:51 PM ET, by Corey Rosenbloom

Well that was surprising. I’ll leave the explanations for you to read elsewhere as we ...

Quick Quad Market Chart of First Brexit Reactions
Fri, Jun 24, 1:11 PM ET, by Corey Rosenbloom

If you’re like me, you’re surprised by the U.K. “Brexit” vote. ...

Even with the Brexit our Emini Fibonacci Levels Hold June 24
Fri, Jun 24, 12:51 PM ET, by Corey Rosenbloom

I think we can safely say most of us didn’t see THAT happening. By a ...

How to Use Our Daily Emini Fibonacci Planning Posts
Thu, Jun 23, 7:11 PM ET, by Corey Rosenbloom

Each morning I post a quick Fibonacci Target Grid for your reference. We use this ...

All is Saved Bullish Market Update and Stock Scan June 23
Thu, Jun 23, 3:51 PM ET, by Corey Rosenbloom

We’re all saved! The United Kingdom is expected to remain within the European Union, and ...

June 23 Bullish Breakout Emini Fibonacci Grid
Thu, Jun 23, 12:11 PM ET, by Corey Rosenbloom

With expectations that the U.K. will remain within the European Union, stock prices surged right ...

June 22 Intraday Reversal Market Update and Stock Scan
Wed, Jun 22, 1:51 PM ET, by Corey Rosenbloom

Price retested the 2,100 key level… but failed to hold it this afternoon. Let’s update ...

Breakout from Fibonacci Grid Emini Update June 22
Wed, Jun 22, 11:11 AM ET, by Corey Rosenbloom

While price bounced between our upper Fibonacci Grid Levels, this morning we’re seeing a possible ...

  More articles:  1 2 3 4 5 6 7 next »

ABOUT US »   ADVERTISE »   CONTACT US »   TERMS OF USE & PRIVACY POLICY »

February 25 Top 5 Stocks Most Extended from 200d SMA Scan | Self Directed Investor | Copyright © 2008 - 2016, All Rights Reserved

Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

SDI is associated with: ValueForum.com -- a subscription-based online social networking forum of serious individual investors. | MarketNewsVideo.com -- videos appearing on SDI are produced by Market News Video. | TickerTech.com -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | GoldStockStrategist.com -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.