Category: setup
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How to Swing Trade Late Day Strength Off An Intraday Reversal
As a swing trader it is important to understand that strength often begets more strength. This is the central principle of the hammer setup. We look for strength at the end that reverses what looked to be a down move earlier in the day. $SPY is a good example of…
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Trade Entry: TRA
I bought 500 shares of TRA at $53.12. Setup: A combo platter of a breakout and trend-pullback and entering within a forming high and tight flag. I expect a continuation of the trend. Great volume pattern and RSI and stochastics confirm price highs. The stock is under accumulated here. Risk:…
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Chart Attack
Here are selected charts from my watchlist. SRX: Breakdown-pullback with bearish flag forming. FSLR: Momuntume breakout. Hot sector. Overbought so I’d wait for a pullback. LEH: Weak downtrend consolidation. If it falls, lots of room to drop. Easy stop placement limits risk. ICO: Nice Uptrend. Possible buy on low volume…
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5 Bullish Chart Setups
I rarely trade 100 percent long or short, even if trading within the confines of a wildly bullish or bearish market. While my market bias is bearish, there are still some bullish stocks to trade. Here are a few nice looking setups, though few are perfect. BMRNThe stock broke out…
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MA’s Bullish Pullback
Mastercard, MA, has pulled back to the breakout point and shows a solid accumulation pattern post breakout. It is a bit concerning that the stock pulled back so quickly, but it did come on lower volume and is holding support. Concerns aside, the stock does offer a well defined reward…
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Chinks in the Armor: STLD
STLD and other steel stocks have been momentum favorites of mine for quite some time. While many steel stocks still look solid (l MT and RIO to name a few), some noteworthy high flyers are showing chinks in the armor. This is not a good sign for the industry as…
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Google Forming a Negative Divergence
While GOOGLE (GOOG) made my long position trading watchlist (entry at 50 day moving average), I could not help but notice the startling RSI, OBV and stochastic divergences that have formed at the current new highs. For those who don’t know, a negative divergence forms when price increases while the…
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Market Technicals
The S&P 500 is at a critcal juncture, already having broken below the 50 day moving average and now ready to test recent lows. If we see a breakdown below 1487, we officially will be in a short to mid term downtrend. A violation of this level would also signal…
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ILMN Revisited and a Video Question
Two nights ago, I mentioned ILMN as a “short float” breakout candidate. The stock had broke out over resistance and had a low float coupled with high short interest. These conditions lead me to believe we could be setting up for a parabolic move higher. Take a look at how…
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"Short Float" Breakout Setup: ILMN
ILMN made a 4 % gain today over established resistance. However, that’s not what put it on my watchlist. Stocks in a downtrend do not usually make the cut. What makes this stock special is that it is a low float stock with a high short interest ratio. The stock’s…
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Today’s Trades and Analysis: GMRK and DXPE
I sold 400 shares of GMRK at $53.85 (entry at $49.76) for a $1636 gain (+8.2%). I sold 500 shares of DXPE at $52.35 (entry at $47.40) for a $2475 gain (+10.4%). Self Analysis: These trades are good examples of how I have grown as a trader. Last year, I…
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Tuesday’s Watchlist
GROW: bullish engulfingJSDA: strong at supportSIGM: Short on pullback to gap pointADM: $39.75 breakout earnings playBWLD: $67.50 bo earnings playOII: $48.50 bo earnings playUPL: $58 bo earnings playUA: $51 bo earnings playVLO: pb to moving average
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Today’s Trade: AAPL and ADM
I bought 200 shares of AAPL at $100.25. I went over the chart on Friday. ADM (Archer Daniels Midland Co.) reports earnings tomorrow. I will likely place a buystop at $39.75-40.10, depending on how the stock looks at the close today. If the stock clears this level (which is an…
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Breakout Chart: XOM
Exxon Mobil Corp. (XOM) broke out to new highs on above average volume. A low volume pullback to the prior highs, just under $79, would normally provide a good entry point. While the breakout is bullish, there are some concerns for this stock. Notice the negative divergences in both RSI…
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Today’s Trades: HES, VDSI and AAPL
I sold 300 shares of HES at $57.55 (entry at $55.91) for a $492 gain (+2.9%). I bought 200 shares AAPL at $$91.05. I had been looking to see how AAPL would handle a pullback to the peak of the double bottom formation it recently broke out from. The hammer…
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Deja Vu
EWO, an Austrian ETF, is looking eerily similar to the way it looked at this time last year. The stock had broke out of a base in late ’05, pulled back to the breakout point, and made a move in early ’06 that measured 6 points from breakout. A negative…
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Potential Breakout-Pullback Candidate
JAH (Jarden Corp.) has most of the characteristics I look for in a breakout-pullback stock: Price breaks out over established resistance on above average volume Stock closes near the high of the day, printing a long range bar Evidence of accumulation prior to breakout RSI is at a higher level…
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Trade Review: HOC
Before posting my review of the HOC trade, I’d like to answer a question posed to me after the latest “today’s trades” post. The question: You seem to hold on to positions for only a few days even though it may seem as though the position could move higher. why…
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Today’s Trades and A Question About how I Spotted PDE
In reference to the PDE setup, Rahul asked “Indeed a good trade. Could you tell how it came on your radar.” Sure Rahul, Two weekends ago, I performed a sector screen, as I do every weekend. Energy was one of the stronger sectors that I identified, but I felt that…
Paul J Singh 