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Thomas Bulkowski’s successful investment activities allowed him to retire at age 36. He is an internationally known author and trader with 30+ years of stock market experience and widely regarded as a leading expert on chart patterns. He may be reached at

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Getting Started in Chart Patterns, Second Edition book.
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Bulkowski's Watch List

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Busted
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Market
Industrials (^DJI):
Transports (^DJT):
Utilities (^DJU):
Nasdaq (^IXIC):
S&P500 (^GSPC):
As of 05/05/2016
17,661 9.45 0.1%
7,667 -88.66 -1.1%
664 -3.91 -0.6%
4,717 -8.55 -0.2%
2,051 -0.49 0.0%
YTD
1.4%
2.1%
14.9%
-5.8%
0.3%
Tom's Targets    Overview: 05/02/2016
18,300 or 17,500 by 05/15/2016
8,350 or 7,650 by 05/15/2016
675 or 635 by 05/15/2016
4,700 or 5,000 by 05/15/2016
2,120 or 2,020 by 05/15/2016
Wilder RSI: 14.9%

Written by and copyright © 2005-2016 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information.

READ THIS: The following are NOT stocks I own or recommend people buy. This is just a shopping list of stocks I'm interested in buying. I may or may not buy them.

Consider these stocks as just the first cut in a long process of elimination. They have not been filtered for anything other than I find them interesting, so you should do additional research before trading them. I am not recommending that you buy any of these stocks. No stocks that I currently own appear in the list unless I bought it after I posted it. See the privacy statement and disclaimer for more information. I do not tout stocks that I own nor do I tout stocks on behalf of others.

I have a computer program that builds this list by finding the most recent chart pattern in the file. That may or may not be the one I am interested in, so keep that in mind. This list is updated whenever time allows. Stocks may appear or disappear without this list being updated.

Watch List Removal Philosophy

First, there are two reasons for a security listed in the Additions section to not appear in the list. The first is that I bought it. Stocks I own, as I mentioned above, will not appear in this list. I don't want to be accused to touting stuff I own.

Second, is that I conducted more research or something happened in the markets which caused me to remove the security from my shopping list. It fell out of favor for whatever reason. I don't disclose the reason for removal (I used to), because maintaining the list is just too much trouble.

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Watch List

The following are NOT stocks I own or recommend people buy. This is just a shopping list of stocks I'm interested in buying. I may or may not buy them. Read the above introduction for more information.

If no securities appear in the list, then I don't see anything worth buying. Click on the symbol for a more detailed discussion of the security. This list is automatically generated, so the patterns found here are the most recent ones located in the stock, but are not necessarily the ones I am looking at. Read the list of additions for a more accurate picture.

 

Symbol Chart Pattern Bullish
Bearish
Start End Industry
CDIHead-and-shoulders bottom      01/26/201602/24/2016Human Resources
CHSTriple bottom      01/25/201602/12/2016Apparel
GPSDouble Bottom, Adam and Adam      01/20/201602/11/2016Apparel
GNWFlag, high and tight      02/11/201603/04/2016Insurance (Life)
MDouble Bottom, Eve and Adam      12/22/201501/04/2016Retail Store
MOSFlag      03/07/201603/16/2016Chemical (Diversified)
WLKDouble Bottom, Adam and Adam      01/20/201602/24/2016Chemical (Basic)

 

Definitions
RS is relative strength (where 1 is best). For other definitions, see the glossary.
’Breakout is upward/downward 100% of the time’ means price breaks out up/down by definition, not by statistically measuring the rate.
All numbers assume a bull market and are based on the breakout direction that occurs most often.
For more information, consult my book, Encyclopedia of Chart Patterns, Second Edition.
 
CDI Corp (CDI)
Industry: Human Resources
Industry RS rank: 39 out of 56
Stock RS rank: 595 out of 636
3/17/16 close: $5.83
1 Month avg volatility: $0.31. Volatility stop (for upward breakout): $5.05 or 13.3% below the close.
Change YTD: -13.76%
Volume: 117,700 shares. 3 month avg: 127,602 shares.
Since 2009 bear market, the best buy day (fewest up closes) is Monday, and best sell day (most up closes) is Wednesday.
 
Chart pattern: Head-and-shoulders bottom reversal pattern from 01/26/2016 to 02/24/2016
Breakout is upward 100% of the time.
Average rise: 38%.
Break-even failure rate: 3%.
Throwbacks occur 45% of the time.
Price hits measure rule target 74% of the time.

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Chicos FAS Inc. (CHS)
Industry: Apparel
Industry RS rank: 37 out of 56
Stock RS rank: 561 out of 636
3/17/16 close: $12.69
1 Month avg volatility: $0.47. Volatility stop (for upward breakout): $11.38 or 10.3% below the close.
Change YTD: 18.93%
Volume: 1,482,300 shares. 3 month avg: 2,839,686 shares.
Since 2009 bear market, the best buy day (fewest up closes) is Monday, and best sell day (most up closes) is Wednesday.
 
Chart pattern: Triple bottom reversal pattern from 01/25/2016 to 02/12/2016
Breakout is upward 100% of the time.
Average rise: 37%.
Break-even failure rate: 4%.
Throwbacks occur 64% of the time.
Price hits measure rule target 64% of the time.

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Gap Inc. (GPS)
Industry: Apparel
Industry RS rank: 37 out of 56
Stock RS rank: 387 out of 636
3/17/16 close: $29.90
1 Month avg volatility: $0.91. Volatility stop (for upward breakout): $27.41 or 8.3% below the close.
Change YTD: 21.05%
Volume: 4,222,500 shares. 3 month avg: 6,467,775 shares.
Since 2009 bear market, the best buy day (fewest up closes) is Monday, and best sell day (most up closes) is Thursday.
 
Chart pattern: Double Bottom, Adam and Adam reversal pattern from 01/20/2016 to 02/11/2016
Breakout is upward 100% of the time.
Average rise: 35%.
Break-even failure rate: 5%.
Throwbacks occur 64% of the time.
Price hits measure rule target 66% of the time.

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Genworth Financial Inc (GNW)
Industry: Insurance (Life)
Industry RS rank: 44 out of 56
Stock RS rank: 614 out of 636
3/17/16 close: $2.95
1 Month avg volatility: $0.21. Volatility stop (for upward breakout): $2.37 or 19.7% below the close.
Change YTD: -20.91%
Volume: 4,927,500 shares. 3 month avg: 8,968,971 shares.
Since 2009 bear market, the best buy day (fewest up closes) is Monday, and best sell day (most up closes) is Thursday.
 
Chart pattern: Flag, high and tight continuation pattern from 02/11/2016 to 03/04/2016
WARNING: A dead-cat bounce occurred on 02/05/2016. There is a 26% chance that a 15% or higher decline will occur (or has occurred since then) by 05/06/2016 and a 38% chance by 08/05/2016.
Breakout is upward 100% of the time.
Average rise: 69%.
Throwbacks occur 54% of the time.
Price hits measure rule target 90% of the time.

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Macys, Inc (M)
Industry: Retail Store
Industry RS rank: 33 out of 56
Stock RS rank: 550 out of 636
3/17/16 close: $43.97
1 Month avg volatility: $1.15. Volatility stop (for upward breakout): $40.85 or 7.1% below the close.
Change YTD: 25.70%
Volume: 2,932,800 shares. 3 month avg: 7,147,466 shares.
Since 2009 bear market, the best buy day (fewest up closes) is Monday, and best sell day (most up closes) is Friday.
 
Chart pattern: Double Bottom, Eve and Adam reversal pattern from 12/22/2015 to 01/04/2016
Breakout is upward 100% of the time.
Average rise: 35%.
Break-even failure rate: 4%.
Throwbacks occur 57% of the time.
Price hits measure rule target 66% of the time.

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Mosaic Co (MOS)
Industry: Chemical (Diversified)
Industry RS rank: 15 out of 56
Stock RS rank: 552 out of 636
3/17/16 close: $29.87
1 Month avg volatility: $1.25. Volatility stop (for upward breakout): $26.80 or 10.3% below the close.
Change YTD: 8.26%
Volume: 5,492,000 shares. 3 month avg: 6,486,174 shares.
Since 2009 bear market, the best buy day (fewest up closes) is Monday, and best sell day (most up closes) is Wednesday.
 
Chart pattern: Flag continuation pattern from 03/07/2016 to 03/16/2016
Breakout is upward 54% of the time.
Average rise: 23%.
Break-even failure rate: 4%.
Throwbacks occur 43% of the time.
Price hits measure rule target 64% of the time.

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Westlake Chemical Corp (WLK)
Industry: Chemical (Basic)
Industry RS rank: 13 out of 56
Stock RS rank: 405 out of 636
3/17/16 close: $48.39
1 Month avg volatility: $1.75. Volatility stop (for upward breakout): $43.26 or 10.6% below the close.
Change YTD: -10.92%
Volume: 1,041,100 shares. 3 month avg: 1,020,318 shares.
Since 2009 bear market, the best buy day (fewest up closes) is Monday, and best sell day (most up closes) is Friday.
 
Chart pattern: Double Bottom, Adam and Adam reversal pattern from 01/20/2016 to 02/24/2016
Breakout is upward 100% of the time.
Average rise: 35%.
Break-even failure rate: 5%.
Throwbacks occur 64% of the time.
Price hits measure rule target 66% of the time.

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Watch List Additions

3/18/16. I removed Genworth from consideration since it reads more like a company struggling to stay out of bankruptcy. Westlake is also being dropped because it's trying to buy another chemical company. That will hurt the company in the short term since they'll be fighting to acquire it at a higher price and to integrate Axiall into the fold.

3/17/16. I added these after reviewing my database: CDI Corp (CDI), Genworth (GNW), and Westlake Chemical (WLK). I haven't researched any of them yet. I've owned Genworth but they have been struggling lately. They might have hit bottom. The high and tight flag might make for a good trade. CDI is coming off a head-and-shoulders bottom, moving up. This is an indirect play on the oil business. Westlake is coming off a double bottom. Full disclosure: I could buy any of these stocks at tomorrow's open.

3/10/16. I did more research on MOS, IPI, and POT and found that potash prices will likely decline through 2017. So even though MOS is inexpensive with good upside potential, I expect it to drop, so am removing it from my shopping list.

I also removed TDC from my shopping list. The stock has been going down for a long time now, too long, and management says 2016 will be weak, too.

3/7/16 I added three picks today: Celdadon (CGI), Mosaic (MOS) and Teradata (TDC). Good price for MOS is to buy at 26 and sell at 45. TER: buy at 24-25 and sell at 40. CGI: The stock broke out of a congestion region today, so it's up 6% or so. Maybe wait for a throwback and then buy. Sell at 17. These are all longer-term plays, but that's the kind of returns I'm looking for. I expect a retrace in the general market, so maybe these buy prices will occur. Be sure to check everything again if that happens. They might not be buys then. See 3/10/16 note.

2/23/16. I added Lincoln National Corp (LNC) to my shopping list. This is a cloud bank play with a potential rise to 45 and 50. But it's a bit high now. I'll wait for an ugly double bottom or even a double bottom to appear and maybe buy then.

2/4/16 I added AEL (American Equity Investment). The stock is down since Nov but I'm not sure why. Earnings come out on 2/10, so I'll wait to see how bad they are. The only thing good about this is its recovery potential.

2/1/16 The following are cloud bank patterns (weekly scale: high risk, high reward). Chicos FAS (CHS), Devon Energy (DVN), Dynamic Materials (Boom), Gap (GPS), Harsco (HSC), Northwest Pipe (NWPX), Principal Financial Group (PFG), Southwestern Energy (SWN), Stein Mart (SMRT), USG Corp (USG).

1/28/16. I added 3 stocks to my shopping list: WMT (Walmart), SMTC (Semtech), and ADTN (Adtran). Full disclosure: I bought some of the Walmart this morning and have a limit order to buy SMTC. As for ADTN, it's too expensive at this stage to buy but it does have some upside potential.

WMT has earnings coming up in about 3 weeks, so it's a risk especially with them paying workers more and closing stores. Upside is 73 to 80 where a cloud bank rests.

SMTC has a cloud bank, too, at 22 to 28.

ADTN: I see a rise to 22 to 25, so if I can pick some up at, say, 17, it might make sense. It's a telecom play, and I don't like the competitive nature of the industry.

1/12/2016. I found some bottom fishing stocks I like and one that's a momentum play. JC Penny (JCP) shows a confirmed double bottom. It's a turn around play that I mentioned before (it was a dud then). Looks like a good candidate to see it rise from about $7.30 to $10. Macy's (M) is another double bottom play. The stock is trading around 39 and it could recover to 63. That could take years. 49 seems more likely. Finally, VCA (Woof) is the momentum play. It had a downward breakout from a symmetrical triangle. My guess is this will bust and when it does, the stock will be a buy. Otherwise, it seems priced for perfection.

1/5/16: I'm adding AES (AES) to my shopping list. This is a power company that owns power plants in 18 countries. Yield 4%. Price has thrown back to a head-and-shoulders bottom pattern (December) and is struggling to move up. That could be due to the international nature of its holdings (coupled with a strong dollar).

Also, Christopher and Banks (CBK). This is a high risk play since it's so cheap and women's apparel isn't exactly high tech. Insiders are buying the stock and price has confirmed a double bottom. My guess is it'll drop back some before moving much higher. I need to do more checking on this one before I buy.

-- Thomas Bulkowski

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See Also

Written by and copyright © 2005-2016 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information. Q: What is the difference between men and government bonds? A: Bonds mature.