I’ve got 16 stocks that I watch closely and most are flagging and worth the watch. Below is Home Depot and it has been on the run since August 9th and there is a lot of chat on the Internet that it is going fall and fall hard. They are all calling the top and shorting the stock. I do not call tops or bottoms because I follow the trends. So right now Home Depot is in a very distinct Bull Flag and if it breaks to the upside, play it. If it stays in the Bull Flag and consolidates or falls from the flag then do nothing or short it when it falls through.
Kodiak Oil is also in the early stages of a Bull Flag and like Home Depot, has been in a very long run without much of a consolidation. The climb angle here is much sharper and looks scary to me. But if it breaks out of this Bull Flag and continues higher, play it.
The next 6 stocks below are all in a Bull Flag and all deserve to be watched for a breakout. Just remember, do guess or bet on direction, wait for it. Always place a stop loss order below the break out point, a pivot low, or a percentage below but never ever just let it go. Nothing like trying to figuring on the fly during panic selling when or where to sell. Most of us can’t handle that kind of pressure with real money.