Posts Tagged ‘50 Day SMA’

Swing Trading Update – The Retrace – 1.29.16

Sunday, January 31st, 2016

Well for Swing Traders this was the week of the "retrace". Monday we saw the markets drift lower all day but the volume didnt really kick in. Swing Trading Strategies - 1.29.16

Tuesday and Wednesday gave traders a big clue as we watched the market basically fight to find a direction.

On Tuesday the clue was an "up" day on increased volume compared to Mondays "down" day on light volume.

Wednesday we had an "outside" day on even bigger volume with a close on the low end of the trading range for the day.

Thursdays light volume "inside" day let you know that the market was taking a "pause" and would more than likely (nothing is for certain) continue is retrace to the upside soon.

Friday we watched as the market did just that. The $SPY had some nice volume to the upside while the $DIAs volume lagged a bit.

Both charts however showed a good combination of price and volume to at least let you know what side of the market (the long side) was the right side to be on.

As we look through the charts of the sector ETFs we see a few good trade setups assuming of course that you are a counter trend trader.

A long trade in $XLE set up nicely as it did in $IYF and even $XLK for those brave traders.

A note on the GOLD ETF's here…

$GOLD ripped to the highs this week with $GDX and $NUGT looking better as well. $ABX is shaping up and maybe taking a look at Silver $SLX would be wise.

As we look forward to trading tomorrow just remember that we are trading under the 50 day SMA AND that we are in a down channel.

With that being said there is a lot of white space on the charts to the upside if the buyers want to push us back a little closer that 50 day "trendline".

If you are a short term swing trader then look to adjust your risk/reward on these counter trend trades so that the math still works for you.

I personally dont think the we are anywhere near done on the short side but time will tell. In the meantime we will continue listen to what the market tells us and trade appropriately.

We hope you do the same. Until next week…Good trading to YOU!

Swing Trading Week in Review – June 8, 2012

Sunday, June 10th, 2012

Swing Trading Blog – Swing Trading Boot Camp

$DIA - Swing Trading ETF

Swing Traders watched as the market puts in it's best week of the year this week.

After nothing but doom and gloom and talks of the next wave of the recession looming the market took off like a rocket this week.

But not everything is peaches and cream in stock market land just yet.

For one thing the volume on the recent UP move has been lackluster at best.

You can't really argue that it's summer time since the SELLING VOLUME we saw just 2 weeks ago spoke loud and clear.

Secondly all three indicies and almost every sector ETF are still trading below their 50 day SMA's.

The markets haven't traded under their 50 day SMA's for this long since the third quarter of last year.

And finally we still have plenty of overhead resistance to break through before I would start looking for the bull to return for any length of time.

Lets be honest…it still a bearish short term market (for now).

So what is your swing trading strategy in a market like this?

Our strategy remains the same. We SHORT (or use inverse ETF's) we the market is weak and go LONG when the market is strong.

At times of transition in the market we start to see less follow and tend to get stopped out a bit more.

As SHORT TERM TRADERS these are the clues that keep us on the right side of the market.

If the market does start to turn to the upside we will notice and hopefully be able to profit from it.

Have a trading plan in place so whatever the market decides to do from here you will be ready.

Until next week…Good Trading to You!

Swing Trading BLOG – Week in Review February 10, 2012

Sunday, February 12th, 2012

Swing Trading BLOG – Swing Trading Boot Camp

$DIA - Swing Trading ETF

The Rally continues but…

The market drifted higher this week extending the rally that started at the beginning of the year.

So where does the "but" come in?

Well Fridays price action left swing traders wondering if the market has reached its peak (at least for now).

Friday traders watched as the market GAPPED DOWN and sold off in the morning only to rally and close at its high.

The sector action was interesting as well. We watched as some of the strongest sectors either "stalled" or began to pullback even as the overall market pushed higher.

The ultra strong Homebuilders ETF ($XHB) traded sideways all week.

$XHB - Homebuilders ETF

The Retail ETF ($RTH) did the same.

$RTH - Retail ETF

The Airlines ($FAA), Real Estate ($IYR) and Materials ETF's all started to retrace this week.

$FAA - Airlines ETF

One sector to watch that outperformed the market this week was the Solar ETF ($TAN).

$TAN - Solar ETF

As far as individual names go there were some great moves and the charts still look great.

$NE, $HAR, $AKAM, $V, $VECO, and $WFM turned in a great week!

$WFM - Swing Trading Stocks

As we look at the swing trading charts we see a lot of stocks that are still looking very bullish.

Some of the best swing trading indicators are flashing signs of being "overbought" though.

The overall market does continue to show signs of being a bit extended and Fridays trading action leaves us wondering what next week will bring.

So what do swing traders do in a time like this?

Stay true to your plan.

You see  we always have a plan…and so should you!

We know exactly what we will do if the market turns down to make a run back towards the 50 day SMA.

We also know what we will do if the market jumps out of the gate on Monday and rallies to new highs.

We have our plan in place well before the market opens each and every day.

Do you know exactly what you will when the market opens on Monday?

Have a plan in place BEFORE the market does whatever it is going to do.

Once it does simply take action based on the plan you have already laid out.

Not only is trading a lot less stressful when you do this it also helps take the emotion out of your trading decisions.

Until next week…Good Trading to YOU!

Swing Trading BLOG – Week in Review Video – July 29, 2011

Sunday, July 31st, 2011

Swing Trading BLOG – Swing Trading Video

Swing Trading analysis – $DIA $QQQ $SPY

ETF analysis – $XLE $OIH $RTH $SMH $XLI $XLK $XHB

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