Earlier today, around 10:15am EST, we posted a snap shot of the Strong and Weak Today lists on the SMB Radar. These are just 2 of 10 outputs that the algo gives us, but are extremely powerful for intraday swings. We saw MCHP on the top of the Weak Today list. It was also holding below 34.00 support, with room to run to its next daily support at 33.10.

This could have been traded in a few different ways (and was on our desk).

1. If you were playing the tape (due to how In Play it was, indicated by the bright red highlight on the Radar), there was an entry when MCHP got tight around 34.00 and finally moved away. However this is an uncomfortable place for many to initiate a position.

2. The other trade was closer to a Spencer Special – wait for it to consolidate lower.

Ultimately, it stayed on the top of the Weak Today list for the rest of the day and reached its 33.10 target. This is a set up we look for everyday when using the Radar. If you are a new user, make sure to review these trades and your own, everyday. Learn the set ups and continue to look for more. The market is constantly speaking to us by repeating patterns. Our job is to find them and execute. The Radar just helps us do it more efficiently. See my post from yesterday on a trade I executed poorly while using the Radar. You can see a clear difference between the set ups.

Disclosure: No position in MCHP