Using one, two, and three month LR channels (definition) show something exciting today. There are a ton of names that appear to be at an inflection point. That is a point where the prevailing trend returns or a new trend begins. For instance: the Dow is sitting on the middle of its price channel for the year.
Twenty-two Names
Out of a couple hundred active stocks today there are 22 names sitting on 60 day LR2 lines. This means they’ve had a 2 standard deviation move down and should return to the middle of their price channel. Half the names line up cleanly on all three (30/60/90 day) time frames. There are also several (not as clean) at the 50day sma. This is a clue that we either resume business as usual tomorrow, or early next week, or this is a major trend change. From this scan there are few juicy shorts other than these same names. Often the best swing shorts are stocks at their lower channel line.
We’re looking for a return into the channel or acceleration out of it. It’s make it or break it time!
Cleanest symbols: CAKE HIG LEN LNN LVS LZB MA OII TNA V ZN
50day smas: DVN EGO FCX OII TNA
Examples
Here you can see all 3 time frames line up: 90bar 60bar 30bar
V didn't close cleanly on the line, but that's one fat hammer on x2 avg volume. Looks like a strong reversal might come.
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