Daily Watchlist of Stocks Discussion for ThinkOrSwim

[MerryDay]

Frequently Asked Questions About Daily Watchlist of Stocks:
https://usethinkscript.com/threads/daily-watchlist-of-stocks-to-day-trade-weekly-options.1023/

Criteria:
Only a select and curated list of mostly large cap tech stocks are watched.
Here is the watchlist @BenTen and @MasterSteve use https://tos.mx/aulPuHR
The below scan is run after hours.


Timeframe:
This strategy is for scalp trading only. @MasterSteve says:

I expect to see a move the very next day, or I’m out of the trade.

Direction:
There is no expressed direction in the watchlist.
You need to use indicators such as Support&Resistance, Trend/Momentum, and Volume in your attempt to determine the sentiment.

Scanner:
To scan for the pattern called Blast-Off. Use the study found here:
https://usethinkscript.com/threads/blast-off-indicator-for-thinkorswim.621/page-8#post-119487
Scan for Arrow is true

We set up a scanner with that list and set the condition to be if the blastoff indicator is True. Then it'll print out a list of the expected movers for the next day.

Watchlist
For those just starting out, @MasterSteve recommends:
We come up with the watchlist every day using the blastoff indicator https://usethinkscript.com/threads/blast-off-indicator-for-thinkorswim.621/ on our tech watchlist (https://tos.mx/aulPuHR)

We've found that if a stock appears on this watchlist, it is very likely to move the next day. There are thousands of opportunities to make money every day in the stock market. Our goal was to make a limited watchlist with the most likely movers so it would be easier to make money. People could take this, watch just a couple stocks, and enter according to their own risk tolerance.

Yeah, a typical scalp trade I'll take either end of week or the next week expiration. I usually like to enter at the money and out of the money plays, usually for a quick 15 min- 3 hour play at the most. I don't much pay attention to delta at the time. I don't intend on waiting a long time for the play to develop, just looking for quick move.

I would keep with in the money or close to the money strikes with at least a couple weeks out to play it safe until you get more familiar with trading. I've found going too far out of the money on a subweekly timeframe can lead to account blow ups quick.

Read more here: https://usethinkscript.com/threads/daily-watchlist-of-stocks-to-day-trade-weekly-options.1023/

 

[EricsLiberty]

Thanks, Steve, for posting the recaps. That was very useful to let the people know what we're working on. I hope to see some positive results as we continue to test this strategy.

Hi there, did you guys share this scanner yet? tia

 

[MerryDay]

@EricsLiberty

https://usethinkscript.com/threads/daily-watchlist-of-stocks-questions.7585/#post-52167
https://usethinkscript.com/threads/daily-watchlist-of-stocks-questions.7585/page-2#post-74174
https://usethinkscript.com/threads/daily-watchlist-of-stocks-questions.7585/page-2#post-77390
https://usethinkscript.com/threads/daily-watchlist-of-stocks-to-day-trade-weekly-options.1023/
Read through the thread if you have more questions.

 

[griftingthrulife]

@BenTen and I have been working on different ways to incorporate unusual options flow into our trading. The majority of work I’ve done with flow so far is related to swing trading, but it can also work for scalping as well. Here’s how this strategy works: Ben and I keep a watchlist of mostly large cap tech stocks that we usually watch and trade. I scan this watchlist every day after hours for notable option flows and make a watchlist of any that are likely to move the next day and in what direction.

This is different from my other UOA work because I am only scanning tickers we are familiar with, not scanning the whole market. Meaning I may not see unusual flow, but I can see if one side has more interest than the other. The goal for this strategy is for scalp trading only. I expect to see a move the very next day, or I’m out of the trade. The data we’ve gathered has been interesting so far and we thought we’d share what we’re working on with the site. We’ve gotten a fairly good success rate on picking stocks that move, but we’re still working on picking the right direction. I think the next stage of this will be to confirm our direction with flows in the first 15 minutes of the day, but that’s hard to track and watch in real time.

I’ll try and post an update at the end of the day with a recap. We’re still in the early stages of this and paper trading, but plan on eventually using this data to trade real money.

For example, our watchlist for Friday 11/8/2019 was

• BABA down
• MU up
• QCOM up
• ABBV up
• INTC up
• CVS up
• WMT up

BABA

Above is a picture of the 5 minute chart for BABA with some recent support and resistance lines drawn in. Thursday November 7th is the day on the left, the shaded section is aftermarket/premarket, and Friday November 8th is the day on the right. From the last few days of flow, I thought BABA would go down on Friday. To make this simpler to track, I’m saying I’d enter all of these positions at open. I checked the flow in the first 15 minutes of market open, and there’s a lot of flow pointing to the downside. That confirms our earlier thesis and I would hold. I probably would have sold before the price hits the previous support line at about $185.5, but at that point is a great position to exit if you didn’t already.

MU

Above is a picture of the 5 minute chart for MU with some recent support and resistance lines drawn in. From the last few days of flow, I thought MU would go up on Friday. First thing we notice is about 5-10 minutes into market open, a lot of flow points to the downside. The next thing that went wrong is MU never broke a previous resistance line at about 6:50 PST. At this point I’d jump out for a small loss.

QCOM

Above is a picture of the 5 minute chart for QCOM with some recent support and resistance lines drawn in. From the last few days of flow, I thought QCOM would go up on Friday. First thing we notice is about 5 minutes into market open, a lot of flow points to the upside. That confirms our thesis that QCOM looks to go up. Second, we see that QCOM doesn’t drop below that lower support line. I’d probably exit at around 9 when we almost hit that resistance line. Better safe than sorry with these scalp profit plays.

ABBV

Above is a picture of the 5 minute chart for ABBV with some recent support and resistance lines drawn in. From the last few days of flow, I thought ABBV would go up on Friday. First thing we notice is ABBV pushes past previous resistance and it becomes support. Flow consistently comes up with a bullish thesis, keeping us in the play until we decide to exit and secure profit.

INTC

Above is a picture of the 5 minute chart for INTC with some recent support and resistance lines drawn in. From the last few days of flow, I thought INTC would go up on Friday. First thing we notice that INTC can't seem to break above that previous support line. INTC has lots of short term puts in the first 30 minutes of market open, and we'd probably want to get out at a loss after that first big drop at 7:00 PST. INTC doesn't move much the whole day.

We were right about CVS and wrong about WMT. The actions we would take on those are similar to those above.

Recap
Out of 7 on the watchlist, 6 made significant moves. We called 4 correctly beforehand, and the remaining 3 would be quickly corrected and exited at a small losses.

Do you actually use the Gamma Exposure to determine direction or is it just based upon volume & OI?

 

[griftingthrulife]

Agree with @MasterSteve

They are the guys who created ThinkorSwim. They kinda know their stuff.

 

[griftingthrulife]

Yeah I know. One bad trade could eat up the profit from the others. I am sure they will come up with a way to determine the direction. My problem is using Robin Hood. I have to purchase and then go back in to place a stop loss. I signed up with E Trade which has the trailing stop loss and much easier, but there is a commission fee.

Fees are negligible when you realize that spreads matter (RH's ****) and you need fast order execution.

 

[MerryDay]

Do you actually use the Gamma Exposure to determine direction or is it just based upon volume & OI?

Direction:
There is no expressed direction in the watchlist.
You need to use indicators such as Support&Resistance, Trend/Momentum, and Volume in your attempt to determine the sentiment.

Read more here: https://usethinkscript.com/threads/daily-watchlist-of-stocks-questions.7585/#post-81013

 

[rfb]

Watchlist for November 10th, 2021

BYND
QCOM
FDX
EA
CRM
ADBE
GS
HD
UPS
VZ

Thanks for posting these picks! Much appreciated! Would it be possible to break down the picks as potential longs or shorts? Thanks again!!

 

[MerryDay]

Thanks for posting these picks! Much appreciated! Would it be possible to break down the picks as potential longs or shorts? Thanks again!!

See the post above yours.

 

[mtntempo]

Frequently Asked Questions About Daily Watchlist of Stocks:
https://usethinkscript.com/threads/daily-watchlist-of-stocks-to-day-trade-weekly-options.1023/

Criteria:
Only a select and curated list of mostly large cap tech stocks are watched.
Here is the watchlist @BenTen and @MasterSteve use https://tos.mx/aulPuHR
The below scan is run after hours. Notable option flows are analyzed and the daily post of any that are likely to move the next day is created.

Timeframe:
This strategy is for scalp trading only. @MasterSteve says:


Direction:
There is no expressed direction in the watchlist.
You need to use indicators such as Support&Resistance, Trend/Momentum, and Volume in your attempt to determine the sentiment.

Scanner:
The watchlist in the shared link above is scanned for a pattern called Blast-Off. You can learn more about that here: https://usethinkscript.com/threads/blast-off-indicator-for-thinkorswim.621/

For those just starting out, @MasterSteve recommends:

Read more here: https://usethinkscript.com/threads/daily-watchlist-of-stocks-to-day-trade-weekly-options.1023/

@MasterSteve
I'm curious if you or @BenTen can share where you research the "notable option flows" of the stocks that the watchlist and blastoff scan populate?

 

[MasterSteve]

@MasterSteve
I'm curious if you or @BenTen can share where you research the "notable option flows" of the stocks that the watchlist and blastoff scan populate?

@mtntempo When I first started the watchlist and was trying to determine direction of a stock the previous day, I used an account on CBOE DataShop (LiveVol Core subscription) to search through recent option flow to help determine whether each stock would move up or down. But we found that the direction of the option flow didn't necessarily align with the first move or even the whole day of direction and stopped using that for this strategy. Option flow was much more useful in the week to two week hold strategies.

 

[mtntempo]

@mtntempo When I first started the watchlist and was trying to determine direction of a stock the previous day, I used an account on CBOE DataShop (LiveVol Core subscription) to search through recent option flow to help determine whether each stock would move up or down. But we found that the direction of the option flow didn't necessarily align with the first move or even the whole day of direction and stopped using that for this strategy. Option flow was much more useful in the week to two week hold strategies.

I appreciate the explanation @MasterSteve! From the examples I saw posted, it looked to me like you guys were able to sometimes successfully predict the direction of the stock movement. What strategy are you using with your watchlist now? Are you still using the "BlastOff" script to scan for stocks on your watchlist to move? Thanks!

 

[mtntempo]

This strategy is still scalp trading only. @MasterSteve says:


Direction:
There is no expressed direction in the watchlist.
You need to use indicators such as Support&Resistance, Trend/Momentum, and Volume in your attempt to determine the sentiment.

Scanner:
The watchlist in the shared link above is still scanned for a pattern called Blast-Off. You can learn more about that here: https://usethinkscript.com/threads/blast-off-indicator-for-thinkorswim.621/

Yes, I understand that the strategy is scalping. Before they were looking for explosive moves the next day. @MasterSteve said that they no longer are looking for the next day. So I was curious what he is doing with the strategy now.. his updated strategy for the watch list. Thanks

 

[MerryDay]

Yes, I understand that the strategy is scalping. Before they were looking for explosive moves the next day. @MasterSteve said that they no longer are looking for the next day. So I was curious what he is doing with the strategy now.. his updated strategy for the watch list. Thanks

Nope, didn't say anything like that at all. This is still for scalping. Still expect to see a move the very next day, or we're out of the trade.
Still using the same watchlist. Still using Blast-off scan. Still not offering a prediction on direction. You still need to use your other indicators to determine sentiment. Been doing it for years. With 93,000 views, it is a well-followed list.

 

[mtntempo]

Nope, didn't say anything like that at all. This is still for scalping. Still expect to see a move the very next day, or we're out of the trade.
Still using the same watchlist. Still using Blast-off scan. Still not offering a prediction on direction. You still need to use your other indicators to determine sentiment. Been doing it for years. With 93,000 views, it is a well-followed list.

@MerryDay
I misinterpreted then, thanks for the clarification. After re-reading it sounds like he just doesn't use the option flow for the move anymore.

Are you taking a trade from the scan/watchlist right at the open and if it doesn't go your way just exiting the position? How do you choose which one from the scan you want to play at open? Premarket Volume?

 

[MerryDay]

This is a great time of year to be scalping. But I don't buck the trend. The market was down pre-market today, so I took a pass.

You shouldn't trade the list, if you don't already have a proven scalping strategy that works for you. If you search the forum, you will find several threads where we discuss our approaches.

For myself, I am overall a swing trader. I am invested in many of the high caps on this list. I know their habits better than my own children. Trendlines, candle patterns, volume, momentum are all I need. When the Blast-off signals, I know which ones are going to follow their patterns and which ones are feeling twitchy at the moment.

Are you on the discord channel? Members discuss their potential trades pre-market there.

If there is interest, we could start a channel in the VIP area, where we discuss our daily setups.

 

[mtntempo]

This is a great time of year to be scalping. But I don't buck the trend. The market was down pre-market today, so I took a pass.

You shouldn't trade the list, if you don't already have a proven scalping strategy that works for you. If you search the forum, you will find several threads where we discuss our approaches.

For myself, I am overall a swing trader. I am invested in many of the high caps on this list. I know their habits better than my own children. Trendlines, candle patterns, volume, momentum are all I need. When the Blast-off signals, I know which ones are going to follow their patterns and which ones are feeling twitchy at the moment.

Are you on the discord channel? Members discuss their potential trades pre-market there.

If there is interest, we could start a channel in the VIP area, where we discuss our daily setups.

@MerryDay
Thanks for the response,

I am familiar with options trading, along with scalping. I don't hold any positions overnight. I am active in a couple other discords but have not been on the discord for this server. I would definitely be interested in a channel in the VIP area where we discuss daily charts and setups premarket and during market hours, and help eachother find good trades.

I'd like to hear the current strategy from @MasterSteve that he uses with this watchlist as well.

Wishing nothing but the best!

 

[MasterSteve]

@MerryDay
Thanks for the response,

I am familiar with options trading, along with scalping. I don't hold any positions overnight. I am active in a couple other discords but have not been on the discord for this server. I would definitely be interested in a channel in the VIP area where we discuss daily charts and setups premarket and during market hours, and help eachother find good trades.

I'd like to hear the current strategy from @MasterSteve that he uses with this watchlist as well.

Wishing nothing but the best!

@mtntempo About a year ago my schedule changed where I was no longer able to trade in the mornings. I don't use this indicator anymore but as others have found it useful I keep running it every night. I'll have to look back through my notes if you're still interested in what strategy I was using at the time. But as every person is different, I would recommend using a strategy you're comfortable and have experience with.

 

[mtntempo]

@mtntempo About a year ago my schedule changed where I was no longer able to trade in the mornings. I don't use this indicator anymore but as others have found it useful I keep running it every night. I'll have to look back through my notes if you're still interested in what strategy I was using at the time. But as every person is different, I would recommend using a strategy you're comfortable and have experience with.

@MasterSteve

I appreciate the reply. I would love to hear your strategy that you used with this scan via blastoff indicator and how you executed trades based on it.

Thanks again!

 

[MasterSteve]

@MasterSteve

I appreciate the reply. I would love to hear your strategy that you used with this scan via blastoff indicator and how you executed trades based on it.

Thanks again!

I'm heading out of town for a week and a half tonight but I'll write it up when I get back.

 

[shankarp2752]

Watchlist for January 28th, 2022

CRM
EA
DIS
MA
NKE
MCD

@MasterSteve Hi Steve, Can you please share your scan script? I have different tickers to follow. So, I can scan daily. Thanks.