4/21 Rejected

A change in method with today's scan. I looked at everything with a volume of 1 million shares or higher (at the time of the scan).

I rejected out of hand -- didn't even look at -- stocks that had earnings coming soon. This speeds up the scan, a good thing, and allows broader coverage, also good.

Here's what parabolic sar signals didn't make the Watchlist, all because their average directional index readings were too low (i.e., no trend):

• HON, bull, adx=23
• IBB, bear, 22
• JBL, bull, 16
• MTU, bull, 17
• SPXU, bear, 28 (this is an ultra fund for SPY)
• STD, bear, 12
• TSL, bear, 16

For my directional trades, I like an adx reading of 30 or above, and the psar signal  must be in the direction of the broader trend (generally, as seen on a three-month daily chart).

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Technical Analysis Explained : The Successful Investor's Guide to Spotting Investment Trends and Turning Points

Technical analyst Martin Pring reveals the secrets of the craft. No trader should be without this book.

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Abbreviations:
psar - Parabolic Stop and Reverse
adx - Average Directional Index
pps - Person's Proprietary Signal
ma20 - 20-day moving average
macd - Moving Average Convergence-Divergence
mfi - Money Flow Index
sto - Fast Stochastic

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