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 this setup.  Trade Report members were... Continue Reading →

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: My intial target is the recent high... Continue Reading →

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 dip to 20 day moving average.GXDX: Nice breakout after... Continue Reading →

Today’s Trade: EWZ

I bought 200 shares of EWZ, the Brazil ETF, at $91.61.Setup: Bullish Flag post Breakout-Breakout Pullback. The stock pulled back to the top of the breakout level, which is also where it broke resistance. Recent volume pattern is strong and obv has increased as stock has pulled back from breakout. As a plus, all things... Continue Reading →

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 in December and has traded... Continue Reading →

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 to risk setup. If entering... Continue Reading →

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 a whole.Let's take a look... Continue Reading →

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 indicators decrease. As you can see... Continue Reading →

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 a double top short setup.... Continue Reading →

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 it's stock has performed over... Continue Reading →

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