Never average losses. Let that thought be

written indelibly upon your mind.

Jesse Livermore

Charting Jim Cramer’s “Up Stocks” for 2020

On Thursday, November 19th, Mad Money host Jim Cramer shared his year end list of “up stocks.”

“I expect these 10 up stock winners to keep winning as we approach the end of the bizarre year that was 2020”

Jim Cramer

The stocks mentioned were:

AMZNNOWOKTAPYPLRNG
ROKUSQTGTTSLATWLO

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Closing Range vs True Range – What’s the Difference?

One way to help judge supply and demand for a stock is to pay attention to the closing range, which indicates where a stock closed within the price range for the day/week/month. Closing near the high indicates buyer demand for the stock. When near the bottom of the range, there was more selling than buying.

Closing Range Considerations:

• The closing range indicates where in the range (day/week/month) a stock closed.
• Higher in the closing range, buyers were in charge. More sellers than buyers when lower in the range.
• A closing range of 40%+ is supportive action.
• Even if a stock closes down for the day, if the closing range > 40%, that is still considered a sign of strength.

The true range takes into account the previous daily or weekly close. This provides another perspective as it relates to the current action, accumulation or distribution as well as the overall trend. The examples below will provide more specifics.

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What Stocks Are Held by Top Growth Funds?

A goldmine of information can be found by looking at the stock holdings of top growth funds. This short tutorial will show you how to find this information in MarketSmith.

I’ve included a short list of several highly regarded growth funds that you can review for their holdings. I’ll also cover a few additional ways to locate fund holdings if you are not a MarketSmith subscriber.

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Look for Tightening Price Action Preceding a Breakout

The concept of tightening price action, lower highs and higher lows, along with volume declining, will often lead to a breakout that follows in the direction of the prior trend.

William Jiler in 1962 referred to this as a coil. Mark Minervini, in his book Trade Like a Stock Market Wizard, describes similar price action which he refers to as volatility contraction pattern (VCP). It is also known as a symmetrical triangle.

In this post I’ll show historical examples as well as recent breakouts and current setups. My focus here is on daily and weekly charts. With that said, take some time and look at various intraday charts, the same concepts apply.

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Percent Above or Below Moving Average and Custom Stop

The track price in MarketSmith can be used to view a stock’s price in relation to various moving averages. The downside is that the information is not displayed directly on the chart, you must right click for each symbol to view the stats.

I’ve written thinkscript that will display the distance above or below either the 21-day exponential moving average or the 10-week simple moving average. If you are viewing a daily chart you’ll see the former, when on a weekly chart, the latter.

I’ve also added information that indicates the price for a specific percentage below the moving average. The percent below can be configured using the Inputs and Options dialog in thinkorswim.

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