Archive for the ‘Sector ETF’s’ Category

Swing Trading Week in Review – November 16, 2012

Sunday, November 18th, 2012

Swing Trading BLOG – Swing Trading BOOT CAMP

$DIA - Swing Trading ETF

The SELL OFF continues!

The markets opened up on Monday with traders anticipating the selling was (hopefully) coming to end.

Mondays lack of volatility was quickly followed by a bearish engulfing reversal bar on Tuesday.

The sellers then continued to bring the market lower to end yet another down week in this most recent downtrend.

This move brings the major indices down to a severely oversold level so a "bounce" next week is a probable.

Looking across the list of sector ETF's we see now that every major sector is trading below the 50 day SMA.

This includes the ultra strong Homebuilders ETF ($XHB) which finally broke down this week.

$XHB - Swing Trading ETF

So with the market turning extremely bearish and the chance of a "bounce" this week what is trader to do?

Well it really depends on your trading business plan.

Does your business plan keep you out of LONG trades in a BEARISH market?

Or does your plan let you trade both LONG and SHORT regardless of the trend?

Your plan should be based around your individual trading beliefs and personality so make sure you take the time to lay out your plan.

With that being said we need to decide which action (if any) we will take if we do see the market "bounce" next week.

If the market does indeed bounce we anticipate being out of most if not all of our STS trades.

We would not look to get LONG but merely let the market play out a reevaluate once the retrace was in effect.

We also would not look to add any more SHORTS at this point even if the market continued lower out of the gate on Monday.

Chasing the market down at this point has low probability of success.

We will continue to be in SHORT mode until the market gives of signs of change.

There is a short list of stocks ($K, $V, $CREE and $FB looks interesting!) that are holding up during this down trend.

As always we will have these on our watch list to see if the strength continues.

Follow your plan and stay on the right side of the market.

Until next week…Good trading to YOU!

Swing Trading Week in Review – November 2, 2012

Sunday, November 4th, 2012

Swing Trading BLOG – Swing Trading BOOT CAMP

$DIA - Swing Trading ETF

**Our thoughts and prayers go out to the victims of Hurricane Sandy**

After a historic decision to close the US Stock Markets both Monday and Tuesday we opened up on Wednesday with a bit of uncertainty.

Low volume was the theme even as the market popped a little on Thursday.

Friday brought out the sellers again and starts what appears to be the next leg down in this recent down trend.

If you at the charts you can see that volume increased and the bearish engulfing bars created on the three major indices are down right bearish.

The one bright spot this week?

The Homebuilders ($XHB) actually traded to a NEW HIGH despite the overall bearish conditions.

That is about as good as it gets since almost every other sector sold off with the market.

A few weeks back we mentioned that the Gold and Silver sector ETF's were losing steam.

Friday both sectors got hammered!

$GLD - Gold Sector ETF

The technology sector and the tech heavy NASDAQ have been the worst performers with no end in sight.

The Energy and Oil sectors look like they are heading lower.

The chart of the Financial ETFs look interesting.

$IYF - Swing Trading ETF

Will this lower high lead to a head and shoulders pattern on the charts?

Time will tell but learning to spot patterns as they form is a key to trading price action.

Next week should be a big week in the market and you should expect some volatility.

Have a plan in place and trade it accordingly.

Keep the victims of Hurricane Sandy in your thoughts and prayers and as always…Good Trading to YOU!

Swing Trading Week in Review – August 31, 2012

Monday, September 3rd, 2012

Swing Trading BLOG – Swing Trading Boot Camp

$DIA - Swing Trading ETF

The market move lower the first four days of trading this week.

The pullback comes after bumping into some overhead resistance at the yearly highs that were put in a few months back.

Fridays price action and volume confirmed that all three indices have ended this recent retrace and are once again attempting to head higher.

Individual stocks were mixed but there were a few stand out sectors for both day and swing traders.

The Retail sector ETF ($RTH) bucked the trend and continued to move higher all week…

$RTH - Swing Trading ETF's

The Hombuilders ($XHB) traded sideways as the market pulled back this week.

The breakout on Friday is one to watch..

$XHB - Swing Trading ETF's

Last week we also mentioned that the Silver and Gold ETF"s ($SLV $GDX $GLD) were making some nice moves to the UPSIDE.

After pulling back to start the week both sectors exploded higher on Friday…

$SLV - Silver ETF's $GDX - Gold Miners ETF $GLD - Gold ETF

One sector that took a big hit this week was the Steel sector ($SLX)….

$SLX - Steel ETF

The price action here indicates that the sellers are here in a big way even though the overall market is holding up.

This is a good example of relative weakness and something to watch especially if the market transitions from bull to bear in the near future.

Keep your eyes peeled as we open for trading on Tuesday (due to the holiday on Monday) and looks for signs on continuation of Fridays move.

Get your Watch List ready and as always be prepared for whatever the market throws at you next week.

Until then…Good Trading to YOU!

Swing Trading Week in Review – June 15,2012

Sunday, June 17th, 2012

Swing Trading BLOG – Swing Trading BOOT CAMP

DIA - Swing Trading BLOG

A nice week for the major indicies this week.

That being said was probably better to be a day trader this week instead of an overnight swing trader.

The intraday moves were very nice and offered reliable chart patterns to trade while the over night moves were less predictable.

See how we trade our Intraday Swing Trading Strategy here.

After a BIG GAP UP on Monday morning the sellers stepped in to bring the market down to end the day.

Tuesday didn't draw much excitement but starting on Wednesday the market started to show signs of moving higher.

Fridays close brought the DJIA right up to its 50 day SMA while the S&P and Nasdaq aren't far behind.

A few of the sector ETF's showed signs of life as well while others are showing extreme relative weakness.

The Gold ETF's continue to trade above their 50 day SMA's and although Silver hasn't quite caught up just yet it looks to be showing signs of strength.

GDX - Swing Trading Blog

As next weeks trading begins things could change in a hurry.

With all the news coming out next week be prepared for the markets to move very quickly. One side will win the "tug of war" and you will miss the moves if you aren't ready.

Look for stocks bucking the down trend (i.e. $WFM $EQIX) to add to your LONG watch list.

WFM - Stwing Trading Blog

Look for those stocks that did not hold up well this week to add to your SHORT watch list.

Have a plan in place so whatever the market decides to do from here you will be prepared to act (and hopefully profit).

Until next week…Good Trading to YOU!

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