DarylThompson: We are just about ready - Steve is getting things set up so he can be on both chat rooms.

DarylThompson: We will be chatting here and Hotto's Club on TCNet.

guest_wjanks: good afternoon

DarylThompson: The charts will be on TCNet only. TCNet better if you have access.

guest_Candlestick1: Good evening everybody,

guest_Candlestick1: we will try to make this short and concise so we all can get in thew pools

guest_Candlestick1: the market reaction was not too exciting after the FED cut today. It was pretty much expected. Now the markets looking for the next earnings guidance

guest_Candlestick1: The pullback is not very strong in the Nas or the Russell 2000, would expect the bottom to occur in the next day or two

guest_Candlestick1: As we have seen in this market, even more evident today, the DOW was weak but the Russell 2000 was strong.

guest_Candlestick1: This is an indication that the small companies are now getting looked at because the economy is slowly getting stable and growing slightly, giving a stronger basis for the small companies.

guest_Candlestick1: This is usually the signs of the maturing legs of a bull market, and it could last for a few years if the economy growth stays steady.

guest_Candlestick1: So how do we track down the stocks that are breaking out? This process is embarrassingly simple.

guest_Candlestick1: Consider what a breakout represents. Something has happened overnight that makes a stock or market so much in demand, that it shows an inordinately clear signal that the buyers are wanting to be in.

This can be caused by a general event or it can be caused by a company generated event.

guest_Candlestick1: There is no possible way that anybody, even with a huge research staff can keep track of all the positive potential announcements for the multitude of companies.

guest_Candlestick1: More so, there would be no way to anticipate when any one of these companies would be announcing positive results of some sort.

guest_Candlestick1: Fortunately, today's software search programs can easily spot the breakouts. The candlestick signals gives you an indication of whether the breakout is going to be sustained.

guest_Candlestick1: The simple sort of the biggest percentage movers is the best way to see what was moving on any particular day. That will tell you that something dramatic has happened in those stocks that day.

guest_Candlestick1: Using the scan, looking for stocks that have the biggest percentage up move and a volume surge will pinpoint something going on in a stock.

guest_Candlestick1: You may not have had any idea of what is going on in a company but it becomes clear that something dramatically altered the sentiment involved in that stock.

guest_Candlestick1: IPIX is a good example of a breakout early May

guest_Candlestick1: What is it? You will easily track that down somewhere in the news logs. If there isn't anything announced in the news logs, you can rest assured that news is going to be announced

guest_Candlestick1: The insiders know what is going on, look at Martha Stewart. The people that have the connections to a particular company will get the word before everybody else, That is life.

guest_luiso: too may dogi what it means

guest_Candlestick1: Big people in the big crowd are going to hear things faster, like all of us here

guest_Candlestick1: Those breakouts are going to be easy to see. I use all stocks May want to eliminate all stocks that are trading less than 200,000 shares that day.

guest_Candlestick1: A lot of big percent moves you will find moved on 3900 shares, nothing that you want to play with.

guest_Candlestick1: Do you chase a break out? Again, remember the definition of a breakout. It is new massive interest coming into a stock for some reason.

guest_Candlestick1: A huge majority of the time , that interest is not going to disappear. An example I can remember a few years back was KTEL.

guest_Candlestick1: KTEL has sold records usually on late night T.V. for the past two decades. Then they announced that they were going to sell records over the internet

guest_Candlestick1: The stock had traded between $5.80 and $6.20 for years. Then when they made the announcement, this all happened about 3 to 4 years ago, it moved from $6 to $12 the next day, a gap up and a white body.

guest_Candlestick1: It proceeded to go to $60 in the next three days of trading. The company had not changed but the perception of their potential changed dramatically, signaled by the breakout.

guest_Candlestick1: The best breakout are those coming off the bottom of the stochastics or have been trading in a flat range for the past lengthy time frame.

guest_Candlestick1: A huge day shows new reasons for buying . The perceptin has become immensely bullish. That is why AVII is still a long term good hold.

guest_Life4All: hello, have i missed it all

guest_Candlestick1: And the large white candle stands out. It lets you easily see that a new buying interest has come into the stock

guest_Candlestick1: That initial breakout day want to see a large white candle that has sustained the buying for the day, even with huge percentage gains for the day.

guest_Candlestick1: A shooting star, if the percentage move is mega huge does not mean an immediate deterrent. It means the profit taking has come in immediately.

guest_Candlestick1: A shooting star formation wants to be followed by new buying up into the upper shadow the next day, showing that the buyers were stepping right back in.

guest_Candlestick1: The effect of the huge percentage move that first day, if the news is truly bullish does have a good residue result. It brings attention to that stock and promotes the reason for the buying.

guest_fieldcrestcf: .

DarylThompson: We are having technical difficulties, please stand by.

guest_fieldcrestcf: thxs

guest_Candlestick1: The financial T.V. stations will report it, the financial newspapers will write articles about it. For those of us that are watching the market closely, minute by minute or daily, has the advantage.

guest_Candlestick1: A stock being scanned early in the day, or even before the end of the day, is going to be followed up the next day or two or three or four when those that don't follow the market on a daily basis start to learn of the news that moved the stock price

guest_Candlestick1: They buy later, hedge funds, mutual funds, money managers now research a company that they were not aware of before. It takes days and weeks for the result of that positive occurrence to fully effect the stock.

guest_Candlestick1: Who benefits from a world event? I sure do not know, but those that have researched specific companies and segments of the market will know exactly how a specific event will make a stock react.

guest_Candlestick1: 911 what stocks did it hurt the most, but more importantly, what stocks would benefit from that tragedy? Most of us could have sat and thought most of the day before we figured out what stocks to jump into.

crichter(ChuckR): Thanks for TCNet, big lag time in the forum

guest_Candlestick1: But going to the scans, finding which stocks were moving the biggest percentage would have been a clear signal as to which stocks would be benefited.

guest_Candlestick1: As seen in the INVN chart, that stock reacted that day September 11. It was up big. We learned about their product by seeing the big move up, then having CNBC show it and explaining what their products do.

guest_ed: hello to everyone

cardwell: Daryl, after this session is over, please clear up some questions for me. One:a statement comes on from guest Candlestick 1 and I assume that to be Mr. Bigalow ? and then that 3 or 4 lines stays on the screen for several minutes or what seems to me ,

guest_Candlestick1: As seen in the INVN chart, that stock reacted that day September 11. It was up big. We learned about their product by seeing the big move up, then having CNBC show it and explaining what their products do.

guest_Candlestick1: That gave it the PR that made it a wanted stock for the next few weeks and months.

guest_Candlestick1: The break out is going be a large white candle or a gap up. Both illustrate the same thing. Should you chase it? It may back off some that day and the next day, but it will have gotten the attention of investors.

guest_Candlestick1: A stock up 25% in one day, I sure want to find out why. A money manager, I will want to research what this companies product and services do that makes it a big move yesterday, or last week.

guest_Candlestick1: Who is going to benefit from well fires in Iraq? WEL came to the forefront because it kicked up 75% one day.

guest_Candlestick1: Did ISPH have a product that could be getting approved? The October breakout says that it has something that made a $3 STOCK GO TO $15 IN 5 MONTHS

guest_Candlestick1: VRA most have had something that made an 11 cent stock go to 66 cents in one day. Do I look for 20 cent stocks? No but if there is something that is going to move this stock to 60 cents again,

guest_Candlestick1: or to $1.20 or $4.00, the breakout day tells me something big is in this company's bag of tricks, I will let the candlestick signals show me when new buying is coming in.

guest_Candlestick1: As you can see , this is not rocket science. This is witnessing massive new buying coming into a stock and then I want the candlesticks to tell me when and how much the buying is going to continue.

guest_Candlestick1: I will be more tolerant of pullbacks, because it is now more out of the realm of trending and pulling back versus quick profit taking.

guest_Candlestick1: A company that has a cure for cancer and could have the biggest potential in the world is still going to have traders that are happy with a 20%, 40% , 100% profit is hard to pass up, even though that stock could still go up another 5000%.

guest_Candlestick1: As you will notice, the big percentage moves usually come from the lower priced stocks. Companies that may have been working on developing a new product.

guest_Candlestick1: They now hit the market , coming out of the negative earnings now have a much better future.

guest_Candlestick1: To review ,very simple, use all stocks, you may want to scan them by all stocks that traded more than 200,000 shares today, and have had the biggest percent moves.

guest_Candlestick1: These scans can be run as early as the software programs have updated info. TCNET sometimes will not have the percent movers until a good while after the market opens.

guest_Candlestick1:If the big move is co
ming off a bottom or a flat trading range , look to see what is breaking that stock out, and do not be afraid to get in it

guest_Candlestick1:
sorry for the technical lock up

DarylThompson:Sorry for the technical difficulties, looks like the website bogged down for awhile. If y'all are still out there, send me any questions you have and I will forward them to Steve. Thanks.

guest_wjanks: thanks you

guest_wjanks:have a good evening

DarylThompson: Question:Do you update TC Net 20 minutes after the open to scan for these stocks?

guest_jkb: any thoughts on ENMD? thank you

guest_Candlestick1: yes or as fast as their updates occur

DarylThompson: Any thoughts on either WFMI or INGN both had Bull Engulfing pattern yesterday?

guest_Candlestick1: WFMI good chart

guest_Candlestick1: INGN good also but want to see strength immediately tomnorrow

DarylThompson: Is it good to use buy stops and sell when the stock drops about .10 cents?

guest_Candlestick1: I only use stops on the initial buy day or when it has moved up to the overbought area

DarylThompson: Any thoughts on ENMD?

guest_Candlestick1: doji today, look for move up in the next day or so

DarylThompson: Your PCF formulas work well I only hope I can learn to make the proper interpretation. Thanks

DarylThompson: Question:I got stopped out several times recently. Is it necessary to put a stop order, or just watch closely??? Thanx

guest_Candlestick1: if you are able to watch, use an area that looks like the sellers are still in control, if you can't watch all day, use a stop, but do not be afraid to take three 4% losses before getting in the fourth time for a 35% gain

DarylThompson: Stephen spoke a lot about stocks that went up strong on large volume - some event caused this that will eventually be known. What is his feeling about stocks, e.g. SIRI, that doesn't move greatly but whose volume spikes up and stays there?

guest_tom175: jsiri

guest_Candlestick1: big volume on a small body day is a good sign that the spring is coiling

DarylThompson: I shorted SHRP Yesterday, what do you think?

guest_Candlestick1: a doji yesterday would have had me out immediately on a positve open today

DarylThompson: Question:my internet connection broke so I missed a big chunk of the chat. Pls review for me:you scan for the breakouts after the mkt has been trading for a while and enter during the day?

guest_Candlestick1: see that is one of the few times that I will buy during the middle of the day is seeing a breakout move and big volume going with it

DarylThompson: Question:do you ever buy at the end of the day if the stock is showing a strong bullish signal and the index and sector look good also

guest_Candlestick1: yes usually in the last 20 minutes of the day

guest_harry: what does a "brakout move" look like

guest_hulk: have a good evening...

DarylThompson: Thanks again. And sorry for the technical difficulties. We hope you got enough benefit to overcome those.

DarylThompson: We are testing new chat room and Forum software for more robust solutions. And to avoid these types of issues.

DarylThompson: Steve and I need to make a meeting at 7:00. We will have this chat posted to the site in a few minutes, barring any other technical difficulties!

DarylThompson: Good night, everyone!

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