9½ Weeks

.The 9 ½ Weeks Scan filters the entire market searching for stocks that are moving down and are making a new 47-day low on higher than average daily volume. Candidates from this scan can be for either a long or short position. If a stock is breaking down after consolidation it could be a candidate for a short position. If a stock has been going down for a while and gapped down, yet, it is trading higher than the opening price, it would be considered for a long position. Stocks that are making a 2-month low, 6-month low, or 52-week low on higher than average volume will also show up on this scan. The following examples illustrate how I use the 9 ½ Weeks Scan in my trading.

this stock is an example of a short candidate based on the 9 ½ Weeks scan. It is just breaking through support levels (bear flag), on increasing trading volume.

The following day, the stock is a candidate for a long position, because it gapped down and traded back up over its opening price. Please note that I would use the reversal day strategy for potential long positions for stocks that have traded down for a while and are making a new 47-day low just as I illustrated in the chapter that covers the Knock Down Scan

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