Today's swing trade stock chart of the day is DIG. Energy is showing positive money flow and the sector has broke out over the 50 day moving average. Here we can place a stop under the moving average with a target at the recent February pivot high at $57.Subscribe to The Market Speculator by EmailI... Continue Reading →
You need to know this fundamental change in oil’s character
Swing Traders focus on two key elements when assessing a stock's trend, volume and price action. Volume often precedes price action as the big players leave footprints that are tough to hide.During oil's parabolic downtrend, volume has consistently shown a distribution pattern while basing before it's next leg down. However, the current volume pattern has... Continue Reading →
I entered NFLX today at $186.11. Here is what I wrote to trade report members:My watchlist is rather small right now and there aren't any good entries, so I'm going to take this opportunity to analyze a focus list stock that is not an easy sell as a long or short right now, NFLX.NFLX has... Continue Reading →
Today’s Entry: STP
I entered STP today on weakness. The stock has shown strong strength in relation to the market, and shows a strong volulme pattern on the recent move up. My target is the September high.
VPRT Showing Signs of Cracking
Notice the negative volume pattern during recent consolidation period.
The Apple Short Trade Continues
The AAPL short trade is turning into a textbook example of the overbought and evening star candle setup. So what do we do from here?Support may be found at the old pivot high, around $135. This would be a good area to exit shorts and possibily enter long. However, longs should be wary of the... Continue Reading →
Distribution Showing Up In Brazil ETF (EWZ)
EWZ, along with the other BRIC countries, has been on fire of late. However, the recent consolidation has the look of a short term top, with the volume pattern suggesting distribution.Note the high volume down days during the recent consolidation.
Today’s Trades: SKF and SRS
I used today's strength to enter two bearish focus list stocks today, SKF (financials) and SRS (real estate). Both are inverse shorts. Note that strong volume pattern during the price consolidation range. There is still room to pullback, so I used small position size. 300 shares SKF at $44.11 400 shares SRS at average price... Continue Reading →
Strategy Session: Using Distribution Patterns to Predict Trends and Trend Failure
The second most important aspect of my trading strategy (behind support and resistance) is using volume to classify stocks that are under accumulation and distribution. Distribution is under way when, over a period of time, stocks show higher volume on down days and lower volume on up days. In a bullish trend, this predicts the... Continue Reading →
Volume and Bottom Formation
Notice that volume during the second leg of the "W" formation is less than that of the first leg. If a bottom formation is in the works, this is a good sign.