Today's Swing Trade Ideas
LYB (Specialty Chemicals) has formed a RTB (rounded top breakdown) and a blue ice failure. LYB is in the process of putting in lower highs and yesterday closed back below the 50-day moving average on pretty good volume. With continued weakness and bearish follow-through, an $8 to $12 drop is very possible.
My entry plan idea: I would prefer to short on an inside day, but I might have to settle for weakness below yesterday’s close with a caution not to chase it. I may be able to pick it up on a relief rally.
My stop plan idea: Today it will be completely dependent on where the buy is, but anything above the 50-day moving average would suggest the buyers are back in town.
I have two ticker symbols I would like to share with you. The first one is the Vanguard Total Stock Market ETF VTI. If you open up your charts with VTI, you can see how this correction started with the candlestick bearish engulf, had follow-through and is currently below the 50-day moving average and has consistently been below the T-Line. Another chart I would like to share is the
Vanguard Total World Stock ETF VT. If you open up your charts with VT, you can see how the shooting star kicked this correction off a few weeks back, and other than a couple of days, VT has consistently closed below the T-Line. VT is currently sitting on the 200-day moving average which might be suggesting a slight relief rally bounce. Do you think the relief rally bounce is going to go anywhere? Well, it might, but don't guess at it. Let the chart prove it to you.
SPY: The SPY continues to see more sellers than it does buyers; price action closed yesterday below the 50-day moving average and has continued to close below the T-Line. The only bright light I can see in the SPY at the moment is the fact that the buyers have defended the most recent lows.
IWM: Double bottoms are not a reason to buy -- they are a condition. Take a look at your IWM chart and you can see the double bottom, but without price cooperation and encouragement, there is no reason to be a buyer at a double bottom. IWM now has its eye on the May 15 low. Notice how IWM has traded once again below the T-Line in a downward trend.
If you join me in the chat room today, I will demonstrate what the buyers need to do to overcome the sellers.
Today – ISM manufacturing index 10 AM
October 2 – jobless claims 8:30 AM
October 3 – employment situation 8:30 AM/international trade 8:30 AM
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Current Swing Trade Featured Trade Ideas- Gold & Silver Members Only:
|Symbols formembers only||Date||Long/Short||Try our Membership, Check out the Trading Room|
|9-30-14||Long||Buy on positive trading|
|9-29-14||Long||Buy on positive trading|
|9-18-14||Long||Buy on positive trading|
|9-18-14||Long||Wait for buy signal|
|9-5-14||Long||Buy on positive trading|
|9-2-14||Long||Buy on positive trading|
|8-28-14||Long||Watch for buy signal|
|8-21-14||Long||Close on weakness|
|8-14-14||Long||Buy on positive trading|
|8-13-14||Long||Buy on positive trading|
|7-31-14||Long||close on weakness|
|7-8-14||Long||Buy on positive trading|
VXX S&P 500 VIX Short Term Futures: A close above the T-Line ™ implies the bullish short-term swing traders are in control, Yesterday's candle implies buyers are in control.
USO United States Oil Fund: A close above the T-Line ™ implies the bullish short-term swing traders are in control. The current candle pattern is suggesting sellers are in control.
TLT: A close above the T-Line ™ implies the bullish short-term swing traders are in control. Yesterday's candle implies buyers are still in control with profit taking.
The above are just my thoughts to myself just thought I would share with everyone.
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