Episodic Pivots

All stocks which rally more than 100% have some episode at the start of each rally and also at the end of the rally. What we are looking for is to catch such stocks at the start of the rally. Episodic Pivots tries to scan for such stocks. Here is what is looks for

1. Stock which is up by more than 8% today on very high volume say 3 million.
2. These stocks should not be down by more than 25% in last 3 months.
3. Volume up by 300% over average volume.
4. Once you have the list, look for a positive news for the stocks in above universe.

Whether the news in step 4 will cause the stock to rally, this judgement comes with experience. A good practise would be look at the stocks that have rally between 200% to 400% to see what caused the move.

I will be posting the EP candidate list along with Double Trouble in daily market update.