Recently, I had posted my hurricane stock picks for 2008. As this is the first day of the hurricane season, let’s take a look at the track record of those who predict the number of expected hurricanes. Looking at the chart below makes me wonder if the stock picking monkey (you know…the one that throws dart at the stock board) has changed professions.
Probably the greatest benefit of hurricane prediction is to remind those who could potentially be in harms ways to prepare for the worst. Having a plan and getting ready for whatever lies ahead can pay off in a big way.
Similarly, you can be far more successful as a trader by preparing for tomorrow’s market action, and acting accordingly, instead of attempting to predict price change. Having a plan and knowing what to do when price and volume change is vital to your success. Awareness of some of those “under the radar” stocks undergoing price contraction or expansion can give you an additional advantage. The two charts below are examples of price patterns that have potential for huge moves one way or the other. This doesn’t mean back up the truck and load up. Just as hurricane prediction allows for preparation of your survival kit and maybe a refresher of your evacuation route, posting charts such as these allow you to be aware of new profit potential and to prepare accordingly.
Quazimoto picked these two stocks even though the set ups are completely different. New Century Financial (Stock Symbol: NEWCQ) has come off the bottom after a catastrophic fall over the last several months. It is now building a new base that will either slide back toward zero or attempt another leg up. Regardless, it is worth keeping an eye on.
Voyant International Corp.(Stock Symbol: VOYT) is coming off some huge gains with volume and may form a new base or bounce back toward the current high. This could provide quick and profitable opportunities. Quazi likes both set-ups and has watch-listed them both for the short term.
