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Swing Trading Week in Review – October 19, 2012

Sunday, October 21st, 2012

Swing Trading BLOG – Swing Trading BOOT CAMP

And DOOOOOOOWN we go…

This week traders watch the market roll over and finish out the week with DJIA dropping over 200 points.

After a bit of a retrace to start the week the NASDAQ got rocked again!

I'm sure the earning news from Google ($GOOG) didn't help matters at all.

The chart of the NASDAQ is a classic chart pattern that shows the relative weakness we were looking at.

Thursday price action and volume confirmed the next move lower and let us draw our new accelerated trend line.

On the flip side a few sectors actually did quite well this week.

The Homebuilders ($XHB) actually traded to a NEW HIGH this and the Financials ($XLF) popped nicely early in the week.

The Energy and Oil sectors ($XLE $OIH) broke out of consolidation this week but were also met with a big day of selling on Friday.

The Tech sector (including the Semi's) continued to get whacked this week.

Both $XLK and $SMH traded to new multi month lows on Friday.

Gold ($GLD) and Silver ($SLV) continue to sell off after putting in a telltale "lower high" last week.

The amount of SHORT setups we saw this week were a good indication that the market was turning.

$AAPL was a pretty text book short.

The interesting thing here is that despite the hard sell off we saw this week there are still loads of stocks holding up.

This relative strength keeps us looking at both sides of the market for trade opportunities.

If the Dow and S&P follow the NASDAQs lead we will see how these stocks handle the heat.

Another sell off that brings these two indices below their 50 day SMA's would have us focusing mostly on the SHORT side but until then we will actively look at both sides of the market.

Will the market follow through to the DOWN side of find some support this week?

No one know for sure so be prepared for either option.

Until next week…Good Trading to YOU!

Tags: ETF Swing Trading, Swing Trading Blog, Swing Trading Chart Patterns, Swing Trading Price Action, Swing Trading Strategies
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Swing Trading Week in Review – October 5, 2012

Sunday, October 7th, 2012

Swing Trading BLOG – Swing Trading BOOT CAMP

The rally continues (for the most part).

The market drifted higher this week pushing the DJIA back to high that we hit a few weeks back.

This move brings the DJIA into an area that has some traders looking for a double top pattern to take place.

In last weeks BLOG POST we noted the low volume that accompanied some of the moves we saw.

This week the volume did increase BUT it was not across the board.

We watched as both the DJIA and S&P rose while the technology heavy NASDAQ basically sat this move out.

The sector action was mixed.

The Gold and Silver ETF's ($GLD $GDX $SLV) continue to hover around their highs.

Both Healhcare ($XLV) and Retail ($RTH) broke out to NEW HIGHS.

The recently strong Financials ($XLF) and Homebuilders ($XHB) drifted higher as well.

The lagging sectors were Energy and Oil ($XLE $OIH $USO) and the Semiconductors ($SMH) and Tech ($XLK).

This "mixed bag" of results leads us to believe that the market may be losing some steam.

As we move into next week we will need to see confirmation to confirm that though.

If we see the NASDAQ jump on board that could push the overall market higher in a hurry.

If however we see more sectors breaking down or failing to participate then we will start looking to the SHORT side more and more.

As always we will have plan for whatever the market decides to do from here and act accordingly.

We hope you will do the same.

Until next week…Good Trading to YOU!

Tags: ETF Swing Trading, Swing Trading, Swing Trading Blog, Swing Trading Chart Patterns, Swing Trading Strategies
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Swing Trading Week in Review – September 14, 2012

Sunday, September 16th, 2012

Swing Trading BLOG – Swing Trading BOOT CAMP

Well in case you haven't heard by now the market continued its BIG BAD RALLY this week.

After consolidating near the highs the market finally broke this the overhead resistance pushing all three indices into NEW HIGH territory.

This recent move puts the DJIA and S&P close to the highs prior to the financial crisis.

The Nasdaq is trading well above those levels.

Here is a look at the MONTHLY charts…

The DJIA…

The S&P…

And finally the Nasdaq…

As expected most sector ETF's, including the GOLD and SILVER ETF's, rallied right along with the overall market.

So what does all this BULLISH price action mean for short term traders?

Well for one it means you shouldn't be SHORT!

Since the market is so strong it is actually very hard, in our opinion, to find good short trade setups anyway.

Focus on your LONG list and be aware of the next level in the market.

In this case the next important "level" will be that high established back in 2007.

Day to day price action should remain bullish so pick you spots.

Last weeks post was about NOT chasing the market and letting trades come to you.

As the market becomes stronger it becomes much more tempting to do so.

The last thing you want to do is start buying at price levels where the majority of traders are selling.

Plan your trades and most importantly TRADE YOUR PLAN.

As we look through the charts we see a lot of stocks that have put in some extended moves.

That means that price has moved significantly away from an optimal entry point.

As we move into next week we will be watching the strong stocks and waiting for PULLBACKS.

Once we see these leaders pulling back we will sit and wait and see what price action and volume tells us is coming next.

Until next week…Good Trading to YOU!

Tags: Swing Trading Blog, Swing Trading Chart Patterns, Swing Trading Price Action, Swing Trading Strategies
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Swing Trading Week in Review – September 7, 2012

Sunday, September 9th, 2012

Swing Trading BLOG – Swing Trading BOOT CAMP

Well let me start off this update by telling you that for some reason I cannot log into my esignal account.

With that being said I will try to update the charts for this post as soon as I can log back in.

Well the BULL keeps on keeping on!

Traders watched as the market moved to NEW HIGHS this holiday shortened week.

Tuesdays low volume sell off was followed by 3 days of up side continuation put the market into NEW HIGH territory.

This recent move has the indices moving through the highs that were established earlier in the year.

This comes after banging into this level a few weeks ago and pulling back a bit closer to the 50 day SMA.

The price action and volume patterns we saw in the market this week were damn near text book perfect.

Both day and swing traders jumped on stocks and ETF's that were breaking out of nice chart patterns on increased volume.

The "big boys" $GOOG, $AAPL and $AMZN all continue to rally.

The Financials and Homebuilders were rockin with $XHB, $GS and $JPM making some nice moves to the UP side.

Gold, MIners and Silver all gapped up and rallied to close the week.

If you look through all the charts you will see we had quite the week!

This weekend I listened to a lot of people talk about getting into the market.

After hearing that I would tell you short terms traders out there not to chase this market.

Sometimes a runaway BULL move can be a move that whacks your trading account in a big way.

Novice and part time traders often think that because the move is so strong it really doesn't matter how, why and where the enter a position.

The think they don't need a trading plan.

I can tell you first hand that this is the furthest thing from the truth.

Chasing a move can lead to quick losses.

These losses will shake your confidence in a hurry if you aren't careful.

Once you lose your confidence the game is over…period.

Rarely do you see someone succeed when the are trading "scared money".

As a professional trader you learn to let your trades come to you.

You learn not to chase a move.

You learn that this isn't the only move you will see in the market.

You learn to never force a trade.

There will be plenty of moves in the market…I guarantee it.

Patience is the key.

As we go into next week just remember that.

Until next week…Good Trading to YOU!

Tags: ETF Swing Trading, Swing Trading Blog, Swing Trading Chart Patterns, Swing Trading Price Action, Swing Trading Strategies
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