Posts Tagged ‘SMH’

Swing Trading Week in Review – February 5, 2011

Sunday, February 6th, 2011

Swing Trading BLOG – Swing Trading BOOT CAMP

Swing Traders watched as the overall market rallied to NEW HIGHS again this week.

The lackluster volume we saw early in the week was followed by increased buying on Thursday and Friday as the market pushed past  the 12,000 level again.

$DIA

The sector action was still a bit mixed and again this week you had to pick your spots when getting LONG at this level.

The Technology sector ETF ($XLK) and the Semiconductor ETF ($SMH) were tow of the standout sectors this week.

$XLK $SMH

The Financials ($XLF), Energy ($XLE), Oil Services ($OIH) and Agriculture ($MOO, $DBA) also remain strong and are worth watching as we move into next week.

Some of stocks on our Watch List continue to rise with the strength of the overall market.

The Semiconductor Equipment makers $KLAC, $LRCX, $NVLS, and $AMAT remain strong and $CRUS has been a real rockstar!

$CRUS

Some of the Energy stocks look a bit extended while others have pulled back off of their most recent highs.

This sector has several stocks to watch going into next week.

Scroll through the charts in this sector and take a look at $BHI, $MEE, and $COG and watch to see if these stocks offer you a good trade setup.

$BHI

A few of the Insurance stocks ($MET, $AET) are poised for a nice break out and Whole Foods ($WFMI) is still holding up and looking strong.

Take Two ($TTWO) and Electronic Arts ($ETRS) both rallied to NEW YEARLY HIGHS on nice volume this week so keep these on your Watch List as well.

$MET $TTWO

We have a bunch of stocks on our Watch List as we move into next week.

The volume follow through we saw on Thursday and Friday puts us back in LONG mode but as always we will watch to see how the market follows through on Monday.

Until next week…Good Trading to YOU!

Swing Trading Week in Review – September 3, 2010

Sunday, September 5th, 2010

Swing Trading Blog Post-

What a difference a week makes.

In last week's BLOG post we told that their were buyers at the 10,000 level in the DJIA.

We saw the buyers step in and hold the market up last week and again on Monday and Tuesday of this week.

Wednesday is when the real fun started.

After a big GAP UP Wednesday morning we saw the market rally the rest of the day to finish just off the high of the day.

Thursday brought more of the same and then the GAP UP, sell off and intraday reversal during Friday's session is a clear sign that buyers were in control.

DIA - Swing Trading DIA

The market continues it's erratic behavior and if you have trading for any amount of time you know that the month of September is likely to bring more of the same.

Last week we posted about the strength in the Agriculture related ETF's…DBA and MOO.

We gave you the "head's up" to watch this sector as it seemed ready for it's next move to the UP side.

Both ETF's followed through nicely this week as the market pushed higher to end the week.

DBA - Swing Trading ETF MOO - ETF Swing Trading

Several of the other "strong" ETF's rallied to new multi month highs this week.

The Real Estate (IYR) and Utilities (XLU) are on this list as well as a few International ETF's like THD and BZF.

IYR - Swing Trading ETF

We also saw the Energy (XLE) and Retail (RTH) ETF's break their short term down trend lines.

XLE - Swing Trading ETF RTH - Swing Trading ETF

The weak sector's we identified last week…the Semiconductor's and FInancial's…put in a decent bounce off of their recent low's.

We wondered last week if these sector ETF's were going to "bounce" back to their 50 Day SMA's or if they were ready to push to NEW LOW'S.

We got our answer although the "bounce" in the semiconductor's was really less than impressive.

The last 3 trading sessions have taken the market and several stocks to near short term "over bought" levels.

We are not going to chase the market at this point and will simply wait for the next opportunity to initiate some trades.

We will let our current  trades play out and manage our positions accordingly.

September is notorious for being a slow, choppy month for trading so be patient and wait for your ideal setups to get into the market.

Until next week...Good Trading to YOU!

Swing Trading Week in Review – June 25, 2010

Friday, June 25th, 2010

Swing Trading Blog Post-

Well after the markets last "mini" rally off of the February lows that market finally put in long awaited and much anticipated pullback this week.

DIA - Diamonds ETF

The two "weak" sectors, Retail (RTH) and the Homebuilders (XHB), we highlighted in last weeks BLOG POST (and in last Friday nights webinar) sold off nicely and actually made NEW LOWS as the market pulled back this week.

RTH - Retail ETF XHB - Homebuilders ETF

Coming into this week there were several SHORT Swing Trade setups in some of the stocks the these "weak" sectors.

WSM, WMT, JCG, ANF and many others were on our SHORT Watch list this week and they all moved nicely to the down side.

The "strong" stocks we talked about last week (AKAM, ALK, NTAP) all pulled back with the overall market this week.

The strongest sector we discussed at the webinar last Friday was GOLD and the GOLD MINERS.

After a nice run up last week you saw most of the stocks and ETF's in this sector put in a short retrace from Monday through Wednesday this week.

GDX - Gold Miners ETF

On Thursday we got our entry signal for several stocks but lets take a look at Newmont Mining (NEM) since this stock seemed to be the leader of the pack in the last UP move.

NEM - Long Swing Trade

NEM BROKE OUT to new multi-year highs last week so were "stalking" this stock waiting for another opportunity to GET LONG after a decent pullback.

Here is how the chart looked last Friday.

NEM - Long Swing Trade

After this nice strong UP move through the previous high (black line) we waited for the first pullback.

That pullback started on Monday and we watched price firm up a bit by the close on Wednesday as it traded around the area of the previous high.

We were watching this previous "resistance" level to now become the new "support" level.

NEW - Long Swing Trade

We still need price action to confirm that this area would hold as "support" and we received this confirmation on Thursday morning.

Right out of the gate on Thursday NEM traded through the high of the previous day ($59.43) giving us an entry signal at $59.45.

NEM moved up for most of the morning only to close the day well below the open.

Another intraday reversal!

Here is how the chart of NEM looked by the close of the trading day on Thursday.

NEM - Long Swing Trade

Price and volume were both increasing but the end of day reversal made it a little tougher for us to determine if the volume was bullish or bearish.

The next day we needed to see the signs that NEM was going to move higher.

Today (Friday) we got exactly what we needed from NEM.

Price moved higher on increasing volume throughout the day.

NEM - Long Swing Trade

Early this afternoon we were able to piece out of some of our position in NEM at the $61.67 level.

We are trailing our stop in NEM based on our BREAKOUT strategy rules and will exit the rest of our position just as our plan and this strategy dictates.

NEM is breaking out to NEW HIGHS once again and the sector as a whole is showing some tremendous strength so we are hoping to see some nice follow through next week.

Speaking of next week it seems that we are really at a pivotal point in the overall market.

We have taken out the last "swing high' and rallied up to (but still under) the 50 day SMA.

We are now in the process of pulling back from the high of the recent up move.

Another run up towards the 50 day SMA wouldn't surprise us at all.

On the flip side though there are still a lot of "weak" looking chart patterns and a some stocks and sectors making NEW LOWS.

So what is a SHORT TERM TRADER to do?

Be prepared for anything!

You have heard that somewhere before right? (this BLOG over and over and over)

As always we will have a list of STRONG and WEAK stocks and sectors on our Watch list  for Monday.

That way no matter what the market decides to do we can take the appropriate action and get ourselves on the right side of the market.

Until next week…GOOD TRADING TO YOU!

P.S. Feel free to join us Friday July 2nd at 6pm for our next "Weekly Wrap Up" webinar.

You can click HERE to register!

Swing Trading Week in Review – May 21, 2010

Friday, May 21st, 2010

The SELL OFF continues!

Another volatile week in the markets this week as the sellers came out in droves driving the Dow back down near the lows we saw on May 6.

DJIA - Swing Trading Strategies

In last weeks Swing Trading Blog post we notified you of the numerous SHORT Swing Trade setups we had on our "Watch List" for Thursday (May 13th) morning.

Our strategy was to locate weak sectors and individual stocks within those sectors that were giving us LOW RISK setups.

We also advised that when the market followed through to the downside we entered into several new positions.

In our Swing Trading Newsletter we highlighted the Semiconductor ETF (SMH) and several of the stocks (KLAC. LLTC, MXIM) within that sector that had nice SHORT trade chart patterns.

Some of the other stocks on our list included AXP, FDX, MET, ALL, and SOHU.

We also got LONG trades off in the Inverse Energy ETF (ERY) and the Financial Inverse ETF (FAZ).

ERY - Inverse Energy ETF Swing Trading

FAZ - Inverse Financial ETF Swing Trading

Well needless to say these trades played out nicely this week as the market made its way lower.

We were able to scale out of our trades on the way up and when the market gapped down again on Friday we tighted our trailing stops and were taken out of most of our remaining shares.

The sellers were relentless this week taking down almost every sector along with it.

The Steel (SLX), Solar(TAN), Oil (OIH), Energy (XLE) and Agribusiness (DBA) ETF's all made new yearly LOWS this week.

Some of the previously strong sectors also came down with the market during this weeks sell off.

Retail (RTH), Real Estate (IYR) and the Homebuilders (XHB) finally broke under their 50 day SMA's and headed lower.

The Gold (GLD and GDX) and Silver (SLV) ETF's came off of their recent highs to put in a lengthy and somewhat concerning pullback.

Fridays "bounce back" tells us that a retrace could be in order going into next week.

We are currently watching some stocks that have shown signs of relative strength during the down move this week but until the obvious negative sentiment changes we will continue to look for additional SHORT trading opportunities.

If you would like to learn more about our Swing Trading Strategies and Techniques please feel free to join us at any one of our upcoming courses or webinars.

Until next week…GOOD TRADING TO YOU!

 

 

 

 

 

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