Swing Trading Boot Camp – Swing Trading BLOG
After starting the week on the down side both the DJIA and the S&P turned around on Wednesday.
Both indices finished the week with two days of modest gains.
The NASDAQ lagged behind a bit despite a few bright spots in the tech sector.
This latest move puts some of the sector ETF's back above their 50 day SMA's and has all three major indices trading right at theirs.
For short term traders that focus on price action and volume the move that happened on Wednesday was a good indication that the UP momentum would continue.
The DJIA was the best indicator of things to come.
The early morning sell off quickly turned into a reversal which had the short sellers covering their positions once again by days end.
This day formed a bullish engulfing bar in the DJIA with impressive volume to boot.
Once this continuation pattern was evident it was a good chance to look to the LONG side for some short term trades.
If you trade the ETF's then $XLF, $IYF and $SMH had good chart patterns to trade.
If you were looking for individual stocks then $APC, $$NBL, $ARG, and $VAR were on the radar.
Just remember that we are in SHORT TERM trade mode.
Quick trades…get in and get out. We are not holding our positions with the long term outlook in mind.
We have a lot to consider as we move into trading next week.
There is still significant overhead resistance to contend with.
The NASDAQ is not really participating with much conviction in these UP moves.
Just some food for thought!
Don't try to outguess the market.
Let price and volume tell the story and act accordingly.
Until next week…Good Trading to YOU!
