Swing Trading Opportunities

[Palatine 10]

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 10]

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 10]

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 10]

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 10]

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 10]

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 10]

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 10]

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

Edited May 27, 2008 by Palatine

[Palatine 10]

One more trade executed, with one pending which is SO. I have a sell stop at 35.90. If it drops to there I'm short SO.

 

PPC (Long): Stop @23.15, Target @29.00

SO (Short): Stop @37.30, Target @35.00

[Palatine 10]

Closed out VTIV, it's getting ridiculous. MENT target was reached.

[Palatine 10]

More trades today. DD was shorted at 48.00 since I have not removed the order. Now if you look at its most recent chart you will see how it's dropping from 48.00 again. This is good! Exactly what I want to see as a seller.

 

DD (Short): Stop @50.20, Target @46.00 (see attachment in previous post)

ABT (Long): Stop @53.50, Target @58.00

DFG (Long): Stop @27.00, Target @32.50

 

Another one that I'm looking for on the long side is DELL. After its earnings report this stock looks promising!

 

I have a hard time finding short trades and wished there were more to hedge against adverse price movements. What I do instead is trade the ES futures on the sidelines (both long and short) to reduce this exposure and also make up for that VTIV loss.

 

A trader should capitalize on all these instruments that are available to maximize return and minimize over-exposure through hedging. In summary we still have 8 positions open and running!

[Palatine 10]

Two more entries:

 

CPHD (Long): Stop @22.65, Target @27.80

ARRS (Long): Stop @7.55, Target @10.70

 

The CNP (one of the few shorts) looks a bit tricky. It's close to being stopped out, perhaps on Monday if bears won't take it lower from here. All other positions are doing well and right now I have no reason to exit any trades.

 

I did not take the DELL trade as it seems to be falling from the 23.80 resistance noted before. Not a good long to take in my opinion.

Edited May 30, 2008 by Palatine

[MC 10]

I'm posting less on the web, but I'm still reading so keep up the good work.

[Palatine 10]

New week, new watchlist:

 

Long: ABI, ACLS, AES, AET, AFG, ALL, ALXN, AMB, AMGN, ARW, BLUD, BRCD, CEG, CEM, CG, CMO, COO, CSE, DOUP, DOX, EPIC, EYE, HOG, FL, KNL, LINTA, MYL, NWY, OMX, PALM, SKX, SVU, STAR, UNFI, WMG, ZLC

 

Short: CTX, HOT, MOLX, NFLX, PEP, PPS, TEN

 

A few of them are really good candidates and I will be posting them as soon as the trades were filled in the morning. As June is going to be the first full month since inception of this thread I will be posting the results at the end of June.

[futures_guru 10]

Thoughts on LNOP? I'm long with a stop under $11.

[Palatine 10]

Thoughts on LNOP? I'm long with a stop under $11.

 

I can't find this ticker symbol.

[Palatine 10]

It is days like these which filter out the strong from the weak. The weak will be stopped out (has not happened to any of our positions yet) and the strong will survive this bearishness and find their way to our targets. It is also days like these the trader has to be aware of and take appropriate measures of insurance.

 

In practical terms this means that I have shorted the SPY ETF's at market open as a hedge against our long-biased portfolio. The new candidates are not doing particularly well today (except for SO) but time will tell. Here they are:

 

AET (Long): Stop @44.50, Target @49.40

CEM (Long): Stop @8.15, Target @9.40

NWY (Long): Stop @7.05, Target @9.50

SO (Short): Stop @36.50, Target @35.20