Posts Tagged ‘IAI’

Swing Trading Week in Review – November 19, 2010

Sunday, November 21st, 2010

Swing Trading BLOG – Swing Trading BOOT CAMP

The sell off continued to start out the week on a negative note.

By Thursday however we saw the buyers step back in and give the markets a lift to close out the week.

This recent sell off has taken the major indices back near their 50 period SMA's on INCREASING VOLUME which is a bit concerning.

SPY- Swing Trading

The "inside day" we saw in the markets on Wednesday was followed by less than impressive volume as the market rose Thursday and Friday.

It looks like we are at another pivotal level in the market and as always follow through (and how it does) is the key.

This low volume "bounce" could be quickly followed by MORE BUYING and an increase in volume.

This would be a great short term sign that the bulls are still in charge.

If however this low volume "bounce" is followed by AGGRESSIVE SELLING then the market could be in a for a significant move lower.

Some of the sector ETF's preformed quite well to close out the week while others are showing signs of tremendous weakness.

The Oil Services (OIH) and Energy ETF's (XLE) had nice moves to the upside.

OIH- Swing Trading ETF XLE

The Semiconductor ETF (SMH) remains strong after it's recent BREAKOUT and we will continue to look for signs of follow through in this sector.

SMH

Silver (SLV) also made it's next UP SWING after a decent pull back from it's most recent high.

SLV - Silver ETF

The two sector's we focused on in last weeks BLOG POST…The Financial's (IYF, XLF) and the Homebuilders (XHB)…have now pulled back to a  level that is BELOW their recent breakout points.

IYF XHB

Both sector's are hovering around their 50 DAY SMA's and are still in a "zone" that COULD hold as support but this type of deep pullback after a HIGH VOLUME breakout is NOT a great sign.

Even though the market is showing a bit of weakness recently there were still plenty of opportunities to take some LONG trades this week.

Several stocks on our Watch List set up for some nice trades this week.

Stocks on this list were $LULU, $COG, $MRVL, $WLK, $X, $BRCM, $TIF, $MEE and $HAL (to name a few).

LULU

Even though the market is still technically in a very BULLISH phase it is at, what we believe, at very pivotal level.

For the first time in several weeks we are actually seeing a number of  SHORT trade setups.

During this recent sell off in the market several stocks have actually started to show signs of weakness.

$ERTS, $LLY, $G, $K, and $MED are a few on our list that are relatively weak.

The Real Estate sector (and the stocks within) have all been hit hard during this recent sell off.

$SPG, $DRE, $KIM and $O have sold off hard recently and a "bounce" could happen in the very near future but the price action and volume we have seen during this sell off has us looking to the SHORT side in this sector.

Next week should give us a good indication of where the market is headed from here.

You may have heard this before but…BE PREPARED FOR ANYTHING!

Until next week…Good Trading to YOU!

Swing Trading Week in Review – April 30, 2010

Saturday, May 1st, 2010

After making NEW YEARLY HIGHS on Monday the market finished down almost 1.8% this week.

Sellers came out in force on Tuesday but the market quickly rebounded Wednesday and Thursday.

The low volume "rebound" came to end on Friday as sellers stepped in again creating a sell off that drove the market down right until the closing bell.

Dow Jones Index 4/30/10

As far as individual sectors go, the Financial ETF's (XLF, IAI, IYF), all made another move lower this week.

We have been watching this sector closely since the negative news came out about Goldman Sachs.

Last week we noticed, and posted to our blog, that the Financial ETF's were not showing much strength as the market made its move up on Thursday and Friday.

The follow through to the down side started on Monday allowing us go LONG the Inverse Financial ETF (FAZ) for a nice short term swing trade.

FAZ - Swing Trading ETF

After hitting resistance at the short term double top FAZ pulled back a bit and continued its UP move on Friday.

Another sector we have been watching closely is the Steel sector.

We began to notice the Steel ETF (SLX) was possibly running out of steam during the market move to new highs on April 14th and 15th.

SLX never made it to new highs as the market rallied and actually begin to sell off as the market made its new high on the 15th.

The weakness continued last week and as the market again rallied to NEW HIGHS by Friday, SLX made an unimpressive bounce off of the 50 Day SMA.

When the sellers stepped in on Tuesday this week SLX sold off right out of the gate and never looked back.

The "Gap Down and Go" as we call it created a "lower high" and was a good opportunity for a SHORT Swing Trade in this sector.

SLX - Swing Trading ETF

So what do we do going into next week?

With the market putting in its first significant "lower high" this week we will continue to look for signs of follow through to the down side.

As always though we will continue to look for opportunities on both the LONG and SHORT side of the market just in case the market finds its legs again and makes a run back towards the highs.

Just remember that being prepared for ANYTHING and EVERYTHING increases your chances of trading success.

Until next week…Good trading to YOU!

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