Keep your eyes open for stocks bucking the trend

As a breakout trader, I only ever go long on new highs, or go short on new lows. Therefore, while the longer-term trend in the general market is still intact, the recent pullback or consolidation (not only in the major market averages, but more importantly in lots of individual stocks), in theory makes it difficult for me to participate.

One of the reason I am continuing to run through my scans and keeping my watchlists up to date is that you may find individual stocks that are bucking the trend, so to speak. 

Coal stocks get burnt

I typed 'coal stocks' into Google today and one of the suggested search phrases was 'Coal stocks grossly oversold'. As I've mentioned many times here, overbought and oversold have no place in a trend follower's vocabulary.