Posts Tagged ‘KIM’

Swing Trading Week in Review – March 26, 2010

Friday, March 26th, 2010

Is this the market that never stops?

This is the kind of rally that a lot of traders find very difficult to trade.

"But everything has gone straight up!"… you might say.

Yes and that is the PROBLEM!

When a market rallies like it has, for the last month or so, traders that missed the initial move are STILL WAITING for the market to "take a breather" and pullback so they can get LONG!

To sum it up…THEY HAVE MISSED THE BOAT!

Now I will agree that the rally we have seen is a bit atypical and at times it seems that you would be chasing the market if you entered into any new LONG trades.

I will argue, however, that if you look at the chart patterns and price action of some of the ETF's and individual stocks you will have found plenty of opportunity to BUY strong stocks.

This is one of the main reason we like Swing Trading ETF's and individual stocks.

We can compare their performance against the overall market.

We can determine whether a sector ETF or stock is "STRONG" or "WEAK" in relation to the market.

Our Swing Trading Blog (the one you are reading right now) posts a "Week in Review" every Friday.

Using just the information posted on that blog last week you could have had a great starting point to locate some swing trades this week.

For the last two weeks we posted to the blog that the Oil and Energy ETF's (OIH and XLE) did NOT seem like they wanted to participate in the recent rally (Relative WEAKNESS).

Not the best time to look for SHORT setups since the market is making NEW HIGHS so what about STRONG sectors?

Last week we also posted on the blog that Real Estate, Retail and Gaming have been some of the strongest sectors (Relative STRENGTH) out there.

We also posted a Swing Trading chart of XHB, the homebuilders sector ETF, which has also been a very strong sector lately.

We told you we would continue to watch these strong sectors as well as the major stocks in these sectors for swing trading setups.

On Monday morning the market gapped down but never broke through last Fridays low.

Once it held this low you should have been looking to get LONG if the market were to continue its strong rally UP.

This is where a lot of traders "miss the boat".

After Fridays HIGH VOLUME sell off they think that the market has finally started to "pullback" or "retrace".

These traders then start doing their nightly scans for stocks to trade the next day.

The problem is they are looking for SHORT trades and do not even consider looking for stocks to BUY.

Because of this they are NOT prepared when the market proves them wrong (like it did).

Because of this they missed swing trade setups in stocks like WYNN, LVS, MGM, DRE, KIM and O (all from last weeks blog).

And probably also missed the swing trade opportunity when XHB gapped down into support (see charts) and then rallied nicely to NEW HIGHS!

XHB Swing Trading ETF

The next they know the market moves UP strong and they are FLAT (no positions)!

The market moves up again the next day and they don't want to "chase the market " so again they dont do anything but sit and watch.

This is exactly how you miss big moves in the market like we have had over the last month!

Just remember, we never KNOW for certain what the market WILL do!

And like I said last week, as swing traders, we need to be prepared for WHATEVER the market decides to do.

That way once the market decides we, as traders, can simply follow and make the appropriate decisions.

Until next week…do your homework and BE PREPARED FOR ANYTHING!

And as always…Good Trading to YOU!

Swing Trading Week in Review – March 19, 2010

Friday, March 19th, 2010

Well after the indices continued to rally and make NEW HIGHS for the year early in the week, the market finally ran into some selling pressure on Friday.

The interesting thing to notice, also on Friday, was the HIGH VOLUME the accompanied the sell off.

A few sectors actually started their sell offs a day earlier.

Last week we posted that we noticed that the Energy, Oil and Semiconductor sectors did NOT participate in the recent rally.

And while the Semiconductors (SMH) actually started to show some strength early in the week both the Energy (XLE) and Oil (OIH) ETF's sold off sharply on Thursday and Friday.

Some of the strongest sectors during this last rally, Retail and Gaming, had mediocre weeks but look good moving forward into next week.

Keep an eye on the Retail stocks, the RTH and gaming stocks like MGM, LVS, and WYNN.

One sector that continues to rally strong is Real Estate.

IYR, and stocks like KIM, DRE, O and SPG, all had a good week and also show some potential new BUY set ups for next week.

The Homebuilder sector, (XHB), which has also been showing tremendous strength after breaking above the $16.40 level, has an interesting chart going into next week.

XHB Swing Trading ETF

You can see how XHB ran up to just over $17 after it finally broke out above the $16.40 level.

XHB did sell off a bit on Thursday and Friday on relatively light volume.

This is the exact situation you want to see during a pullback AFTER a BREAKOUT!

As XHB pulls back into the BREAKOUT level of $16.40 we will look for this previous RESISTANCE LEVEL to hold as a new SUPPORT LEVEL.

So after Fridays HIGH VOLUME SELL OFF what can we expect next week?

Well it does seem that the market is a bit overdue for a pullback but, as Swing Traders, we need to be prepared for whatever the market decides to do.

Since the market is SO STRONG we will continue to look for LONG Swing trade set ups in STRONG stocks that are trading in the STRONGEST sectors.

Until next week…Good Trading to you!

Swing Trading Week in Review – March 12, 2010

Friday, March 12th, 2010

What a GREAT week for swing traders!

The RALLY continues as the NASDAQ, S&P 500 and several sectors race ahead to NEW HIGHS for the year!

If you listen to some of the talking heads on T.V. you hear that the trading volume for this last up move was very LOW so they remain weary of the the upside potential in the weeks to come.

Now although the "low trading volume" in the broad market MAY be a concern moving forward some of the individual stocks showing great price action and volume patterns for us swing traders!

And despite the DOW's lackluster performance there were stocks all over the place making HUGE upside moves!

Apple (AAPL) closed for the week at its ALL TIME HIGH!

Research in Motion (RIMM) also had a great week, and after breaking through the $72 level it rallied to the upside and closed UP by almost 10% this week!

RIMM

PCAR and LULU we also rock stars this week!

Subscribers to our Swing Trading Newsletters were alerted to numerous BUY set ups this week and a bunch turned out very nicely (if we do say so ourselves)!

CAL, WYNN, RIMM, and WYN all offered great swing trade opportunities!

CAL Swing Trade

One sector that really took off was the Financial Sector.

Take a look at XLF, IYF, FAS and well as some of the individual names like GS, C, and MET.

The banking sector finished UP 2.5% this week, outpacing the the S&P by more than 2 to 1.

The RETAIL (RTH) and REAL ESTATE ( IYR) sectors also continued their impressive rally with both sectors closing at their highest point of the year as well.

SPG, KIM, O and DRE continued their runs after showing great chart patterns for us last Friday.

Oil (OIH), Energy (XLE) and the semiconductors (SMH) all basically sat this last rally out.

So will these sectors play catch up or will they sell off when the market finally takes a break and pulls back a bit?

Only time will tell but for now we will continue to focus on the sectors and stocks that are showing tremendous relative strength.

Until next week…Good Trading to YOU!

 

 

 

 

 

Swing Trading Week in Review – March 5, 2010

Friday, March 5th, 2010

And UP we go again!

Last week we said we were hopeful that the market would give us a clear direction and this week it did exactly that!

Last Thursday's price action had us looking to the LONG side and this week started off on Monday with a nice UP day letting us know we were on the right side of the market.

The market stalled a little mid week but by Thursday the buyers stepped in again and pushed the market higher right until the close on Friday!

The rally was wide spread with most sectors having nice gains this week.

Retail (RTH), Real Estate (IYR), and the Steel (SLX) sectors continued their strong runs.

Several stocks in these sectors had GREAT price and volume patterns that lead to some very nice swing trade set ups!

X, AKS, KIM, O, TIF, and JCG all are good examples of these set ups.

The Financials (XLF) and the Homebuilders (XHB) also rallied nicely allowing us to take some profits in these sectors by weeks end.

So how do we look going into next week?

After such a nice strong run up this week we see some stocks that are approaching short term overbought levels as well coming up to overhead resistance areas.

As Swing Traders its our job to identify the clues that the market gives us and to put all the pieces of the puzzle together to make a decision.

We the fast run up in these stocks, combined with short term overbought conditions AND coming into OBVIOUS overhead resistance it would be smart to tighten up your stops at this point to protect your open profits.

Some of our more recent positions are just starting to move into positive territory but the positions we opened at the end of last week we will be quick to exit at the first sign of weakness.

Do NOT chase the market up!

If we continue to rally sit on the sidelines and wait for the market to either pullback a bit or at least consolidate near the highs.

Be patient and wait for the low risk/ high reward opportunities…you will be glad you did!

Until next week…Good trading to YOU!

 

 

 

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