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!
