[Palatine]

Here is a list of potential swing trading opportunities for the upcoming week.

Long: A, ABI, ABT, AGG, ALSK, AMSC, ANH, ARCC, ARRS, ATR, BRCD, BRO, CAH, CEPH, CI, CMO, CNP, CPHD, CSC, CVC, CYMI, DELL, DFG, DLB, DXD, ENDP, ENTG, ESLR, FCEL, FL, HIBB, HUM, JCOM, KO, LEGG, LXK, MDT, MENT, MFA, MZZ, NLY, OGE, ORI, PDLI, PLCE, PPC, SAI, SCRX, SGR, SLM, SOV, SRS, STZ, TWTI, UST, VLO, VTIV, ZLC, ZRAN

Short: ABFS, ADP, AEE, BMY, CERN, CF, COH, CPB, CTL, DBA, DD, EPIC, ERTS, FDX, FNFG, ILMN, IWD, LEN, LTM, MGM, MTB, ONXX, ORI, PFG, RMD, RX, SO, SNDK

Trades that I took or am about to take will be posted here together with entry and target prices (attached charts will be included).

A little about my trading style:

• The swing trades usually last several days
• It is very mechanical with objective price targets and stoploss orders planned upfront
• Support and resistance is crucial for my orientation
• The only indicator I use is the 200 MA

I hope to keep this thread updated at least every weekend with new swing trading ideas.

[MC]

Subscribed...can't wait to see the charts.
Also can you shed any light on what you scanned for, without giving the scan away of course.

This has to be my new trading style since I can no longer daytrade at work.

[Palatine]

Sure, my screener criteria is as follows:

• Enough liquidity, average volume above 500k
• It has to be a US stock (no ADR, otherwise S&R levels will be distorted)
• Price is above $5, ideally above $10

This already gives me 1500+ worth of results so it takes some time to browse through all of them Moreover, if I look at its chart I want to see smooth price action with as few spikes and dubious gabs as possible. I do this every weekend and go through my list during RTH to spot entries as soon as the stock is ready for a move.

[Palatine]

I entered two trades today and have set the orders for a third, which is DD.

VTIV (Long): Stop @32.80, Target @38.00
MENT (Long): Stop @9.80, Target @11.30
DD (Short): Stop @50.20, Target @46.00 (an entry anywhere near 48.00 would do it)

Don't chase DD. If it wants down, let it. No need to enter it at a disadvantageous price.

[MC]

Originally Posted by Palatine »

I entered two trades today and have set the orders for a third, which is DD.

VTIV (Long): Stop @32.80, Target @38.00
MENT (Long): Stop @9.80, Target @11.30
DD (Short): Stop @50.20, Target @46.00 (an entry anywhere near 48.00 would do it)

Don't chase DD. If it wants down, let it. No need to enter it at a disadvantageous price.

I have to ask...VTIV you're risking about $4 to make $2?

MENT I like, I'd love to see it bust that 200sma first though as it's backed by a swing low as double resistance. Of course they could gap it or even push right through quickly so an aggressive entry here could work, just not in my trading plan.

DD broke the trendline and I'd like that $48 level to get short like you said.

The targets you give, are you scaling out there and holding some for a shot at the bigger moves? Cause those targets are sound first targets but don't give me the risk to reward ratio I look for.

Just my 2 cents...good luck.

[Palatine]

The VTIV is close to 1:1 from where I entered. I do agree that the higher this ratio is the better it can be for a trader. Those setups are rare, however, and in the meantime money can be made on those 1:1 trades. Trade management is something where great minds part so my intention is merely to point out opportunities and the reader has to do what fits his/her trading style best.

What I take into account is the probability for reaching a specific target. If this probability (based on my perception) is high enough I'm in without further ado, even with risk/reward as low as 1. My turnover ratio is very high which means I get out as soon as the target is triggered and jump on to the next trade. I don't stay in with remaining positions but close it entirely.

The 200 MA should be a minor problem in MENT. What I see is a hold and close above resistance Waiting for price to go above this MA would pretty much eliminate its potential.

[MC]

Originally Posted by Palatine »

The VTIV is close to 1:1 from where I entered. I do agree that the higher this ratio is the better it can be for a trader. Those setups are rare, however, and in the meantime money can be made on those 1:1 trades. Trade management is something where great minds part so my intention is merely to point out opportunities and the reader has to do what fits his/her trading style best.

What I take into account is the probability for reaching a specific target. If this probability (based on my perception) is high enough I'm in without further ado, even with risk/reward as low as 1. My turnover ratio is very high which means I get out as soon as the target is triggered and jump on to the next trade. I don't stay in with remaining positions but close it entirely.

The 200 MA should be a minor problem in MENT. What I see is a hold and close above resistance Waiting for price to go above this MA would pretty much eliminate its potential.

Gotcha, almost scalping with in and out moves. In this market climate not a horrible idea perhaps.

I think consolidating below the 200ma is often bullish. When that breaks it's often explosive with so many stops above that level ready to buy and/or cover shorts.

Keep up the good work bud.

[Palatine]

Thanks for your feedback MC. It comes close to scalping I'm rather humble. Over the time this style has prevailed because too often a profit has turned to a loss or break-even by waiting for bigger targets that never materialized.

A couple of more trades before the close:

A (Long): Stop @33.95, Target @38.00
DLB (Long): Stop @44.15, Target @49.80
LXK (Long): Stop @34.75, Target @39.20
CPB (Short): Stop @33.70, Target @31.50