Trolling the bottom looking for treasure

A few times a week I do some tasks involving stock screeners and tonight I thought I would share one of the scans I use when I go bottom fishing:

Show stocks where close is below lower bollinger band(30)
and Average Volume(90) is above 250000
and close is between 5 and 250

 

The above is the syntax I use within StockFetcher that does the following:

  • show me stocks where price is below the lower Bollinger Band(30)
  • Average volume is above 250000
  • Price has a close between $5 and $250

If you run this scan now, here are your Top 5 results:

  1. $QQQ
  2. $F
  3. $GMCR
  4. $VALE
  5. $RIMM

Each of these stocks presents an opportunity where the stock is under selling pressure, but price is at a point where Dip Buyers should show up looking for price to move back inside the lower Bollinger Band.

Here is a sampling of charts for $VALE & $RIMM:

4 thoughts on “Trolling the bottom looking for treasure

  1. I see the light on Rimm and have purchased 24 call options today. August 13 14 and 20 strikes. It was a real bargain.  I have done the math using Gann and see
    Rimm coming back up in the near future. Look at the move it had last week in just three days! That could happen again this week or next week. I called today’s low $11.72 on Friday and only missed it by $00.02. Gann was right on. There should be a change in direction tomorrow.

  2. Hello Derald,

    Appreciate you taking time and posting your ideas. How do you keep all the different ways you trade organized in your head 🙂

    I am a follower on twitter and read your blog posts, and you amaze me on the endless knowledge you share.

    I am trying to learn how to trade and mainly keeping it simple. 

    I like $F, $QQQ, and $GMCR. Wen looking at a trade, how do you evaluate if you plan to use and option setup or equity setup?

    Appreciate the education and time you take to post.
    Thank You
    Ron

  3. There will be several things I look at when deciding to use options in a trade. 1) current positions, capital available 2) liquidity of the options, and if there are Weekly options available 3) ATR of the stock 4) price of the stock does come into play on stocks over $100 for sure, especially if I want to get heavy.

  4. I do like GANN and use it from time to time when looking at Weekly or Monthly charts. Nicely done.

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