One of my daily trading preparation routines is to use IC...

One of my daily trading preparation routines is to use IC software to scan for new 52-week high stocks. Providing the 52-week high is in a steady uptrend, without any short-term sharp parabolic increases, the stock is kept in a dedicated watchlist for further daily monitoring. The stocks in this folder tend to subsequently make new 52-week highs for weeks and months after. NEC (Nine Entertainment) made a new high last week. This is very bullish for the stock. The 100 and 200-day longer-term moving averages are both headed up. These are the type of stocks I want in my portfolio.

I also sometimes scan for new 52-week low stocks. One of the standout features is that the stock is declining below falling 100 and 200-day longer-term moving averages. SWM came up on the latest 52-week low stocks scan. These stocks out of all those listed on the ASX, are at greatest risk of going into a trading halt and subsequently being suspended from quotation. Stocks such as ABS, DSE, and BNB were all near their 52-week lows before finally being suspended. Traders usually lose everything.

Fortunately, the majority of 52-week new low stocks survive. However, professionals have long exited these stocks. The last line in the sand is a decisive move on relative large volume below the 200-day moving average. This first occurred back in Oct 2007 when SWM was trading around $12!

SWM could well be referenced as an archetype dog stock, ideally suited for shorting. Any short-term intraday or daily price increases are viewed as micro dead cat bounces. Until SWM can eventually rise above the 200-day moving average, SWM long holders are swimming in dangerous waters.

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