Posts Tagged ‘RIG’

Swing Trading Week in Review – September 10, 2010

Sunday, September 12th, 2010

Swing Trading Blog Post-

This week the overall market continued to show  it's recent strength as it closed a bit higher than last week.

Low volume often leads to low volatility and that is exactly what we saw this week.

DIA - Swing Trading ETF

Some of the individual sector ETF's also inched higher but without any real conviction.

The Agriculture ETF's (DBA and MOO) remain strong as stocks  like ADM and AGU moved higher this week.

With so many price levels that could be overhead resistance areas coupled with the low volume up move it make us wonder how long this move will continue.

Absent more volume coming in to move this market decisively higher it seems some form of a retrace is in order.

The Real Estate ETF (IYR) is holding up nicely after breaking out to new highs last week.

The 2 ETF's we mentioned last week (XLE and RTH) that broke their short term DOWN channel lines pushed a bit higher but on lower volume…a "caution" sign for sure.

XLE - Swing Trading ETF RHT - Swing Trading ETF

We will continue to watch these sector ETF's going into next week and several stocks from these sectors are on our Watch List as well.

On the flip side of the coin the Semiconductor stocks took a hit on Friday and pushed the sector ETF (SMH) lower despite the overall strength in the market.

Several individual stocks in this sector had chart patterns that setup some nice risk/reward ratio's if you elected to trade on the SHORT side.

CREE and CRUS turned out to be nice STS trades as they all pushed down towards their recent lows and SNDK started its next move DOWN on Friday.

CREE

All in all we find ourselves (yet again) at a pivotal area in the overall market.

There are several stocks (DE, AKAM, MOS, EQIX) that look great for LONG trades in the near future *IF* buyers step up in force to move push them through their overhead resistance levels.

We could make the same argument for the weak stocks which look like they are setting up to move lower very soon.

It is still a choppy market and trend traders are pulling their hair out for sure!

If your strategy has a longer term holding period it may be prudent to sit on the sidelines until this market makes up its mind.

Another option is to shorten your time frame (like our STS Strategies) which means tighter stops and smaller profit targets.

Trade smart and protect your capital and until next week….Good Trading to YOU!

 

 

Swing Trading Week in Review- January 15,2010

Friday, January 15th, 2010

What a way to end the week!

The indexes all closed DOWN on HUGE VOLUME today…The Dow closed down -100.90 (-0.94%), while the S&P 500 lost -12.42 (-1.08%), and the Nasdaq finished down -28.75 (-1.24%).

Some of the strongest stocks (CREE, MRVL, DE, RIG, APC, X, CAT) followed suit also trading significantly lower on heavy volume.

We were able to lock in our profits from last weeks swing trades by being prepared for a move we somewhat anticipated.

So what were the clues?

Well take a look at this weeks price action.

After last weeks strong up move you have to expect a pullback in the market.

Monday and Tuesday saw they S&P and Nasdaq pullback a bit while the Dow held pretty steady.

Monday we did note that some of last weeks strongest ETF's (OIH, XLE, SLX) gapped up on Monday and then sold off to finish near their lows.

The strong stocks also pulled back a bit as expected.

Nothing too alarming but a clue to POSSIBLE things to come.

The next few days painted a different picture from the previous up move.

One of the things we noticed that really stood out on Wednesday and Thursday was the amount of stocks and ETF's that were pushing higher on DECREASING VOLUME!

Take a look at the chart patterns to see what we mean.

Here is XLF (Financial ETF)…

XLF - Swing Trading ETF

And the OIH (Oil Services ETF)

OIH - Swing Trading ETF

And finally the SLX (Steel ETF)…

SLX_1152010

Now you can see how they all attempted to move higher on DECREASING volume.

Dominant moves (UP in this case) on LOWER VOLUME should turn on the CAUTION light for you.

If you pull up some of the individual stocks you will notice the same chart patterns.

Stocks like DO, RIG, APC, MEE, WFC, JPM and X all have similar stories.

Once we noticed the signals that PRICE ACTION and VOLUME gave us we were a little cautious getting overly LONG.

Now, no one can predict the future, and POSITIVE volume could have come back into the market the next day so we were prepared if that would have been the case.

We held our remaining LONG positions and actually added 2 more during this time however we DIDNT LOAD THE BOAT!

When todays (Friday) sell off happened we were well prepared.

We tightened up our stops on our LONG positions and when we were stopped out of some of them today we were able to hold on to our hard earned swing trading profits!

Now that being said the market could do an about face on Monday and head right back up.

But at least for now we locked in our profits and have no problem entering into new LONG positions if the market take off again.

When you see LOWER volume UP moves it means you need to start paying very close attention!

It does'nt mean to EXIT your positions or start shorting strong stocks in a strong market but it does tell you that things MAY, and I repeat MAY, change.

Once you see the warning sign it prepares you to TAKE ACTION if price action confirms the change (like it did today).

We like to see price action AND volume working together we we enter into our trades.

UP moves (in this case) on strong volume and pullbacks on lower volume.

When the two dont match up they are telling you something…WARNING WARNING…Sentiment MAY change here (even temporarily) so HEADS UP!

By learning to read and interpret price action, volume and chart patterns together you can see the "big picture", that way you are always prepared to take whatever action the market calls for.

Until Next week…Good Trading to You!

Off to a good start for 2010

Saturday, January 9th, 2010

So the New Year started off with a bang!

The markets continued to show tremendous strength during the first trading week of 2010.

The Dow opened the the week at 10,430 and never looked back, closing up 1.8% at 10,618!

The S&P 500 was up 2.7% for the week and closed at 1144.

Some of the sectors were absolutely on fire!

Steel stocks were on a roll and stocks like X, AKS, STLD, and NUE all had a big  week.

SLX, the Market Vector Steel ETF, finished up almost 10% for the week.

Energy and Oil stocks also continued to rise with stocks like BHI, DO, RIG,and APC having great weeks.

OIH was up over 11% for the week while XLE finished up almost 6%.

The heavily watched financial and home builder sectors also show some very nice upside moves.

The home builders had some great swing trade set ups.

XHB closed up over 7% for the week after breaking out from a nice pattern on the daily chart.

PHM, LEN, DHI and MTH all finished the week up nicely.

Swing traders should have capitalized on the financials as GS, JPM , and WFC all had BIG weeks after breaking their respective DOWN TREND lines.

Casinos, Airlines and Solar stocks also had a great week

Some of the other sectors, however did not fare very well during this strong week in the market.

The retail sector had a weak showing with a few exceptions like RL and BBBY.

The Real Estate sector also had a weak showing with IYR only up a tad over break even for the week.

There were plenty of opportunities for Swing Traders to profit from last weeks action and we hope you were able to do just that!

We look forward to see what next week brings and Good Trading to you!

© Swing Trading Boot Camp 2017