Looking back at the picture perfect set up in the markets this past week, It's amazing to see how exact the level played out across all time frames. This market might not have the volatility, or volume at times, But the setups continue to show themselves in a very clear manner. As we pulled back into the lower portion of the flag on the $SPX. We also had the majority of the HPS 100 set up in a Huge buy signal. The HPS100 is the list of stocks I scan each week for the HPS watch list. I don't limit myself to the 100 but created that to keep focus on quality stocks and generally good trading stocks. When I sit down to start researching for the HPS watch list It starts off with a process of going through most of the S&P 500 index, Looking at sector performance, and what sectors didn't perform. Those visual scans 1 chart at a time is the first part of weeding out the next money makers. I break the stocks down and weed out anything that does not have at least 2 indicators setting up in sync. I keep future potential set ups in a list that I check through out the week, and separate the 3-4 indicator stocks into a narrower focus list. The I break those down and take the best of the best. It's a process that takes time but when you see the results of the HPS stocks it is something that I just want to continue to do. Now back to the HPS 100 this is not something I mention every week, and the fact is the HPS 100 was once the HPS 40 and the number of stock in it will always be changing. The key is to continue to go back to the "Quality" stocks that set up in repeating patterns and low risk entry zones. I will be working on a Trend Line Alert section of the HPS site that will have the HPS100 in its focus and will automatically alert us of those perfect channels that have been key in trading this market. 

Today I have a great watch list video for you. Nothing less then the best Hope you all profit from it next week

Video can be found here along with a New Cheat Sheet for "Channel Breakout Stochastic Rotation"

http://daytradingradio.com/10for1000

DayTraderRockStar