Friday, August 29, 2008

Pre-Market

Futures trading lower this morning with the NASDAQ pacing the way following disappointing earnings from DELL last night. Oil spiking as storm approaches and dollar modestly weaker.

Gapping Down: DELL, ABK, BPOP, SIGM, FNM, KLAC, TOL

5 comments:

Kogi said...

Jamie,

What are your specifications of the NR7 scan, should it be declining volume from the prev couple of days ? When I run my NR7 scan it gives me around 250-300 shares per scan, while I have found very difficult to review all. How can I minimize the number of shares and at the same time get an effective scan. (filter Volume MA(20)=300,000, price 10 to 120.

thanx in advance
Kogi.

Jamie said...

Kogi,

Are you sure that you want to scan such a large universe of stocks for NR7? The way I do it is I scan my watch list and industry sector lists for NR7. In addition, I run two separate scans for NR7 on gaps, one up and one down.

For my watch lists I don't specify any window specific filters. For the gappers, I use 150,000 min. volume and $15.00 min. price for stocks gapping 1% or more.

If you want to continue scanning with the criteria you are currently using, add a min. % volatility filter. This will reduce the number of hits. For example if you use 20% you might find that the number of hits are too few on choppy NR days, so you can adjust it to a lower figure. Using the history time frame as opposed to real time, you can test it after hours to see what kind of results you would get under different levels.

Do not use lower volume for previous days. Basically, you want find gapping or trending stocks with high volume that have paused to consolidate and will continue with another big, high volume, move.

Kogi said...

Jamie,

thanx for a quick reply. It clarifies a lot.
On the other hand my monthly watchlist is relatively small and I can review it manually without running any smart scans. I am aiming to extend my daily watchlist by adding shares which were revealed by daily scan (NR7, RSI .. etc) watch a potential trade for today and then remove it from this dynamic daily list.

From your explanation it appears that for instance NR7 scan is not the scan which has created your watchlist, you're using NR7 scan to fetch proper shares from already built WL, means that the WL is created using another specs, I assume something like "above 200MA, RSI, MACD ... " any hints which scans are you running monthly to create this static list ?

thanx, Kogi

Jamie said...

Hi Kogi,

Okay, I think I may have misunderstood your original question. I thought you were using the Trade-Ideas scanner to scan for NR7 intraday. Now it seems that you are using another software to scan for NR7 on the daily timeframe. Is this correct?

Kogi said...

Jamie,

Yes right, I am using AmiBroker with custom code to perform all kinds of scans. I can do what ever I want and scan entire market :)

So, as I mentioned NR7 appears to be a good scan to pick right shares for the trading, but it can not be a first level scan and requires additional scan to be performed prior to running the NR7.

thanx,
Kogi