10½ Weeks

The 10 ½ Weeks Scan filters the entire market searching for stocks that are moving up and are making a new 53-day high on higher than average daily volume. Candidates from this scan can be for either a long or short position. If a stock is breaking out after consolidation it could be a candidate for a long position. If a stock has been going up for a while and gapped up, yet, it is trading lower than the opening price, it would be considered for a short position. Stocks which are making a 2-month high, 6-month high, or 52-week high on higher than average volume will also show up on this scan. The following examples illustrate how I use the 10 ½ Weeks Scan in my trading

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This stock showed up on my 10 ½ Week Scan when it was trading at 48 and was on pace to trade higher than average volume. The stock gapped up open and traded as high as 48.19. Then, sellers took over, and the stock traded through the opening price of 47.70. I was looking to enter a short position on the stock. My conservative price target for a short position on an up-trending stock in a bull market based on the corrective phase approach was 45.50. My entry price was 47.65 and my stop loss was placed at 48.31.

Stock trades down to 45.50 over the next two trading days and hits the price target right on the nose. This is an example of how I use the 10 ½ Weeks Scan to find potential short candidates.

The setups I use for long positions from this scan are basically identical to the examples in the Usual Suspects or the Power Trader page pages.

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