The list below is meant to be an aid to investors, swing traders and option traders. We have combined our analytical work into an easy-to-read table, which includes “Momentum rankings” in three different time frames, plus notes and “Trade Setups.” The list is composed of our “Focus List” of stocks, ETFs and futures. In the stock list, we tried to include the best stock(s) from each major group with the best option volume. Here is how it is meant to be used:

Investors: Look at the Long-Term (L-T) color for major trend and Intermediate-Term (I-T) rankings for momentum and trend condition.

Swing and Directional Traders: Look at the Intermediate-Term (I-T) and Short-Term (S-T) rankings for momentum and trend condition.

Strategic Option Traders: Look at the Option Bias (OB) rankings for momentum and trend condition. Option Bias is reflective of a 10-50 day time frame.

Trade Setups: At askSlim, we do not believe in giving buy or sell recommendations. We believe each trader has their unique style, risk parameters and level of market engagement, and that traders should be responsible to confirm their own analysis and for the proper entry and exit of a trade.

Based on our analysis across multiple time periods, a Trade Setup is generated when conditions exist for a favorable entry. We expect to release 1-3 setups a week, but some weeks may not produce any additional setups. New setups will have three stars (***) on the day they are added. When a condition exists that a setup is no longer favorable, you will see the setup turn grey. This is not meant as an “exit” signal, that will be up to you.

The first column of the table will indicate if the Notes column was updated or a Trade Setup was added. When there is an update to the Notes column, we will add an “N” and when there is a new Trade Setup, we will add “TS.”

We will tweet out when changes are made. Follow @askSlimRS16 on Twitter

*** Today’s Setup


LEGEND

TRADE IDEAS

 

Intermediate (I-T) Momentum and Cycle Phase Rankings
Pending P-1 Slightly Positive N-1 Slightly Negative
Average P-1 Positive Level 1 N-1 Negative Level 1
High P-2 Positive Level 2 N-2 Negative Level 2
Highest P-3 Positive Level 3 N-3 Negative Level 3

 

Long Term (L-T) & Short Term (S-T) Momentum Rankings Legend: Trade Setup Legend:
Condition Confidence Level Long Short
Positive Average L1 Long L1 Short
Negative High L2 Long L2 Short
Neutral Highest L3 Long L3 Short

 

Option Bias Rankings Legend:
P-3 The intermediate and short-term momentum are positive. There are no signs of overbought conditions. The momentum is either early in an up wave or the security is self-correcting. The underlying security is expected to continue rising for the near-term and the pace may accelerate.
P-2 The intermediate and short-term momentum are positive. There is a slight overbought condition which may slow upside movement. The underlying security is expected to continue rising for the near-term at a lesser pace. Short-term pullbacks may be more likely within the upward trend.
P-1 The intermediate and short-term momentum are positive. There is an extreme overbought condition which will likely slow upside movement. Upside movement is expected to stop soon. A downside reversal may be imminent.
The intermediate and short-term momentum are in conflict. Until there is a confirmation of momentum, the security may be range bound.
N-1 The intermediate and short-term momentum are negative. There is an extreme oversold condition which will likely slow downside movement. An upside reversal may be imminent.
N-2 The intermediate and short-term momentum are negative. There is a slight oversold condition which may slow downside movement. The underlying security is expected to continue declining for the near-term at a slower pace. Short-term bounces may be more likely within the downward trend.
N-3 The intermediate and short-term momentum are negative. There are no signs of oversold conditions. The momentum is either early in a down wave or the security is self-correcting. The underlying security is expected to continue declining for the near-term and the pace may accelerate.