This is a time to be cautious as a short term trader. Volume is light and there is not much In Play. The SMB Radar is our insurance policy during slow market times to make sure we focus our energy on the stocks with the best risk/reward setups. When I look at the Radar during the day and most of the stocks in the Strong, Weak and Price Spike columns are in blue, I know it is time to be hyper selective in my trades. We color code stocks based on their In Play rank and anything below a 1.0 is a shade of blue.

The stocks on top of the Strong and Weak columns on the Radar presented some nice technical setups. However AMGN which was #2 on the Strong column wasn’t even In Play and probably was a trade I would have either passed on our taken very little risk. Here are the top 2 from Strong and Weak today with a few annotations.

Steven Spencer is the co-founder of SMB Capital and SMB Training and has traded professionally for over 15 years. His email is [email protected]

*no relevant positions