TM Editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

It is a US and Canadian holiday on Monday, Sept. 5, which means no stock trading.

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The overall stock market health is poor. I created a watchlist this week mainly to see how many stocks were forming quality contraction or cup-and-handle patterns. There still aren’t very many. If I were to be taking trades in this environment, I would be using smaller-than-normal position sizes. I don’t want much of my capital exposed when most stocks are falling.

Here is the current market health outlook.

Swing Trading Stock Watchlist

Here are the scan criteria used this week.

137 stocks met the criteria in the US, and 27 stocks on the Canadian side. Of these, here are the stocks I find most noteworthy:

Canadian

• Cardinal Energy Ltd. (CRLFF) – This one needs to move up and consolidate.

US

• Cytokinetics, Incorporated (CYTK) – Nice movement with this one. More consolidation would be nice to see.
• Enphase Energy, Inc. (ENPH) – This one needs to move up and consolidate.
• JAKKS Pacific, Inc. (JAKK) – This stock also needs to move up and consolidate.
• Mercer International Inc. (MERC) – This one needs to consolidate.
• MakeMyTrip Limited (MMYT) – This stock needs a bit more time to contract and consolidate.
• Xenon Pharmaceuticals Inc. (XENE) – This needs to consolidate.

More By This Author:

Swing Trading Stock Market Outlook For The Week Of Sept. 6
Swing Trading Stock Market Outlook For The Week Of Aug. 29
Seasonal Patterns Of The Stock Market