5/10 Scan

Today's scan was a bit on the strange side. There were many parabolic sar bull signals as the markets responded to the EU's aggressive action to preserve the euro's value.

And many issues are showing strong trends on the average directional index.

The problem comes when look at the adx more closely, for it shows the adx readings went up quickly with the sell-off during the extreme few days of fear that the euro would collapse.

That means any bull signal would in fact be counter-trend, and so rejected from the Watchlist.

Here's the list, based on a scan of stocks with volume of 3 million shares or more at around 2 p.m. Eastern.

Parabolic sar bull signal, adx of 30 or greater, counter-trend: AA, AFL, AKS, AMT, BBL, BHP, DP, EWA, FCX, JNPR, JPM, KG, LLY, MOS, MT, NWSA, NVB, ONNN, PG, PM, SID, SNY, STD, TBT, VALE, VALE/P and X.

Parabolic sar bull signal, adx 30 or greater, extreme intra-day low during May 6 mini-panic: PG and PM.

Parabolic sar bull signal, adx less than 30 (weak or marginal trend): BK, BSBR, DTV, EEM, EWJ, FXI, GNW, ILF, JNJ, KMB, MTL, PEP, TCK, TLM, VWO, XL and XLP.

Parabolic sar bear signal, adx 30 or greater, counter-trend: TLT.

---

The Investor's Guide to Active Asset Allocation: Using Technical Analysis and ETFs to Trade the Markets

Martin Pring's detailed deconstruction of the economic cycle: What sorts stocks to look for at each stage of the recovery. A masterful analysis.

---

Skynet Panic of May 6
Panic Looks Like This
Skynet Panic Poisons Technical Tools

New to Private Trader? Check out the Reader's Guide.

New to private trading? Here's a look at How to Become a Private Trader.