Chart of the Day: Consolidating Stocks

[dc]T[/dc]hough perhaps not properly a “chart” of the day, I wanted to share one of the several stock screens that we publish in my Waverly Advisors research. This screen highlights stocks that are consolidating with low volatility near the high (or low) of their 52 week range. Particularly as the market goes flat or into a pullback, these become potentially interesting names to watch. There are many ways to trade names like this. In most cases, implied vols are low, so simply buying options as a stock replacement strategy can make sense. You can buy them on breakouts, into pullbacks, or there are even three short candidates that could make interesting potential pair trades or hedges.

While we do also call a number of precise trades with stop and target levels updated daily (for instance, short Gold from 9/23, long S&P 500 from 10/17, short Treasuries from 11/20, short Yen from 11/21, and long the British pound from 11/27, and several other positions), we also provide information like this stock screen that can be adapted to your own trading style. Daytraders, position traders, swing traders, and portfolio managers all find value in our stock screens and setups in our daily updates. If you’d like to check out our research, contact for a free, no-obligation trial.

Regardless, this short list of names might repay some careful thought and attention over the next few weeks.


Adam Grimes has over two decades of experience in the industry as a trader, analyst and system developer. The author of a best-selling trading book, he has traded for his own account, for a top prop firm, and spent several years at the New York Mercantile Exchange. He focuses on the intersection of quantitative analysis and discretionary trading, and has a talent for teaching and helping traders find their own way in the market.