In the context of this article, the only Canadian Stock Alerts that I follow are stocks with volume.
I follow them because the unusual volume indicates that they are "in play" stocks.
And quite simply, a stock that is "in play" is more likely to return a decent profit in short order.
More specifically I follow stocks that have unusual volume.
By unusual I mean stocks that have 3, 4 or more times their usual daily trading volume.
It's that heavy volume that indicates the "in play" alert.
Now let me give you three recent Canadian Stock Alerts that fit this description to a tee.
A Canadian company with the stock symbol PEM.
V opened on Friday June 5, 2009 at .
15 which was just up from the previous close of .
145 .
It not only opened up but in fact unusual volume made it spike up to .
18 in the first 30 minutes of play, then came the typical pullback to .
16.
The unusual higher volume, open above the previous close and then a spike with a pullback is the perfect set up.
As such I would buy 30,000 shares at the .
16 pullback level and plan to sell at .
19, the psychological price point threshold.
And as predicted, it flew to .
205 and couldn't hold it and closed the day at .
185 But in the process we gained $800.
00 net for two hours work.
By the end of the trading day this "in play" stock had 10 times the normal volume.
Here is another example of a Canadian company (SSS.
V) opened Thursday June 4, 2009 at .
115 up slightly from the previous close of .
11 .
It too had the extra volume and it spiked up to .
13 and pulled back to .
12 .
Same set up scenario as the last example.
Volume first, higher open, spike up and pull back.
As such I would buy 40,000 shares at the pullback .
12 and just like clockwork, the "in play" volume pushed it to .
155 in under 2 hours.
Level 2 shows you the depth of buyers and sellers, as I could see the sellers coming in heavy at .
15, I sold at .
145 and the extra volume allowed me to get out easily.
In under two hours I turned $4,800.
00 into $5,800.
00 and after commissions had a net to me of $900.
00 Remember Canadian Stock Alerts are not stock picks at all, they are just alerts to stocks that fit a particular pattern.
There is absolutely no way to know which stocks will have that unusual volume until the first 15 minutes of the markets being open.
FVR.
V is our third Canadian company example.
This stock opened Wednesday June 3, 2009 at .
045 up slightly from the previous close of .
04 .
The volume kicked in and the stock spiked, but this one had no pullback.
My radar still went off based on the higher open over the previous close.
This was a 50,000 share buy for me at .
055 and even though this had terrific volume, I knew that the psychological price point threshold would kick in at .
09 if it got that high.
It could easily stall and not break through .
10 Again, Level 2 revealed a huge selling pattern developing at .
09, so I sold with ease at .
085 .
This still had a huge 55% return and did so in just one hour.
A true net of $1,400.
00 was realized.
So these three examples earned a true net after commissions of $3,100.
00 for 5 hours work over three days, with no more than $4,800.
00 invested at any one time.
And if managed in your TFSA, there is zero tax liability.
Canadian Stock Alerts watches for stocks with volume as the "in play" factor can have terrific upside profits.
It's not a sexy system I agree, but making money is always sexy! And you know what, giving it away is even sexier, but that's another article altogether.
I follow them because the unusual volume indicates that they are "in play" stocks.
And quite simply, a stock that is "in play" is more likely to return a decent profit in short order.
More specifically I follow stocks that have unusual volume.
By unusual I mean stocks that have 3, 4 or more times their usual daily trading volume.
It's that heavy volume that indicates the "in play" alert.
Now let me give you three recent Canadian Stock Alerts that fit this description to a tee.
A Canadian company with the stock symbol PEM.
V opened on Friday June 5, 2009 at .
15 which was just up from the previous close of .
145 .
It not only opened up but in fact unusual volume made it spike up to .
18 in the first 30 minutes of play, then came the typical pullback to .
16.
The unusual higher volume, open above the previous close and then a spike with a pullback is the perfect set up.
As such I would buy 30,000 shares at the .
16 pullback level and plan to sell at .
19, the psychological price point threshold.
And as predicted, it flew to .
205 and couldn't hold it and closed the day at .
185 But in the process we gained $800.
00 net for two hours work.
By the end of the trading day this "in play" stock had 10 times the normal volume.
Here is another example of a Canadian company (SSS.
V) opened Thursday June 4, 2009 at .
115 up slightly from the previous close of .
11 .
It too had the extra volume and it spiked up to .
13 and pulled back to .
12 .
Same set up scenario as the last example.
Volume first, higher open, spike up and pull back.
As such I would buy 40,000 shares at the pullback .
12 and just like clockwork, the "in play" volume pushed it to .
155 in under 2 hours.
Level 2 shows you the depth of buyers and sellers, as I could see the sellers coming in heavy at .
15, I sold at .
145 and the extra volume allowed me to get out easily.
In under two hours I turned $4,800.
00 into $5,800.
00 and after commissions had a net to me of $900.
00 Remember Canadian Stock Alerts are not stock picks at all, they are just alerts to stocks that fit a particular pattern.
There is absolutely no way to know which stocks will have that unusual volume until the first 15 minutes of the markets being open.
FVR.
V is our third Canadian company example.
This stock opened Wednesday June 3, 2009 at .
045 up slightly from the previous close of .
04 .
The volume kicked in and the stock spiked, but this one had no pullback.
My radar still went off based on the higher open over the previous close.
This was a 50,000 share buy for me at .
055 and even though this had terrific volume, I knew that the psychological price point threshold would kick in at .
09 if it got that high.
It could easily stall and not break through .
10 Again, Level 2 revealed a huge selling pattern developing at .
09, so I sold with ease at .
085 .
This still had a huge 55% return and did so in just one hour.
A true net of $1,400.
00 was realized.
So these three examples earned a true net after commissions of $3,100.
00 for 5 hours work over three days, with no more than $4,800.
00 invested at any one time.
And if managed in your TFSA, there is zero tax liability.
Canadian Stock Alerts watches for stocks with volume as the "in play" factor can have terrific upside profits.
It's not a sexy system I agree, but making money is always sexy! And you know what, giving it away is even sexier, but that's another article altogether.
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