May, 2011 | Swing Trading Boot Camp

Saturday, May 7th, 2011

Swing Trading BLOG – Swing Trading BOOT CAMP

The overall market SOLD OFF this week as sellers stepped and drove stocks lower.

The SELL OFF came in INCREASED VOLUME after the market pushed higher last week on less than stellar volume.

The SELL OFF has traders looking to INVERSE ETF's for possible trade setups in the very near future.

The Energy and Oil ETF's took a hit and and going to be sectors to watch moving into next week.

Agriculture ETF's continue to show weakness and the Steel sector could be headed towards a NEW LOW.

You can see a Technical Analysis walk through on one of the weak Agriculture stocks ($MOS) by clicking HERE.

The Retail and Semiconductor ETF's and holding up very well during this recent PULL BACK in the market.

Despite the recent selling pressure just remember that the market is still trading above its 50 day SMA.

The are more Swing Trading opportunities on BOTH sides of the market now so that tells us that we are at a pivotal point.

There are still plenty of strong stocks to watch ($R, $INFA, $K, $WLK, $ERTS, $M) so make sure to have a plan for next week.

If we trade higher on good volume next week the market could continue its move up.

If we trade higher and volume doesn't follow through then we could be in for another leg down in the near term.

Until next week…Good trading to YOU!

Sunday, May 1st, 2011

Swing Trading Technical Analysis

Will the DOWN TREND in $MOS continue or is a BREAK OUT in the near future?

Let us walk you through our Technical Analysis for this potential swing trade.

The overall trend is obviously DOWN in $MOS.

The THICK BLACK lines indicate the dominant trend channel.

The horizontal BLUE line is a area of potential support since BUYERS have stepped in each time $MOS has traded down to this level.

The ORANGE lines indicate the short term trend channel that $MOS is currently trading in.

The other stocks in this sector are on the move so we are waiting to see what $MOS does in the days to come.

The push lower on INCREASED VOLUME we saw on Thursday was followed by an "inside day" on lower volume.

We consider this a "stall" and will wait to see how $MOS trades out of this chart pattern.

For the DOWN TREND to continue we would need to see PRICE move lower and VOLUME move higher.

Price would have to break through the previous support area and VOLUME (heavy selling) should accompany that to make it happen.

What would an UP move need to look like for us to take a trade?

A BREAK OUT of the ORANGE CHANNEL on INCREASED VOLUME would be a nice trade set up for us.

This would be an STS trade since there is still some overhead resistance to deal with.

Lets see how $MOS does over the next few days and come back to walk through it together.

We hope you find this Swing Trading Technical Analysis walk through helpful!

Archive for May, 2011