Sitting on the Sidelines

As an optimistic swing/day trader, I tend to look for technical setups that are ready to move to the upside.  So, on days like this, I sit on the sidelines and watch. I learned a long time ago (and still get hurt by it on occasion) to not chase stocks when the majority of the market is down.  It’s tough to sit, I know.

On that note, let’s see what’s going on.. first, from my Watch List… I doubt we’ll see much, but maybe there are a few stocks still setup that are worth watching IF we rebound back up.

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Tags: ALD, BZH, CAEI, CI, CPBY, DCT, DNN, EGT, EROC, FIG, HOV, KFN, LINTA, MRVC, NOVL, SNV, SQNM

Bad News Bears

The market gave back today as investors continue to worry about how soon a recession recovery will occur. I had a feeling we would see this today (see the daily scan) and as a result, most of my setups did not play out – unless you were looking for shorts.

In the very wide macro view, both the S&P 500 and the DOW finished sitting on MA20. The DOW actually fell below MA200.  More bad news?  Full Sto looks topped out and headed down like a rock off a cliff.

The good news?  The volume wasn’t crazy high (wasn’t a massive selloff).

Overall, it is a bearish picture and the DOW looks less likely to hold support (hope I’m wrong).

From the Watch List:

As someone that looks for bullish breakouts, I pretty much found nothing that worked from the Watch List. However, here are a few that managed to hold support and still have a chance to move if the market recovers tomorrow..

• $CPBY – doesn’t look great, but volume could snap this one back up.  Risky at these levels.
• $EGT – still within consolidation range, but has lost some of its bullish qualities.  I still don’t like it under .225
• $FIG held on to MA200.. barely. chart
• $ALD actually finished up from the open.. not bad on a day like this. Full Sto still bullish.

That’s about it.  A closer look at the Watch List shows a really rough day all the way around with most losing their bullish setups.  I’ll keep an eye on these tomorrow for possible rebounds, but I’m not holding my breath. I’ll screen for more setups later this evening.

Tags: ALD, CPBY, EGT, FIG

The Daily Scan

Let’s get this party started… first, I must say that my gut says that it might be a tough week for the bulls, but I’ll be ready just in case I’m wrong..

A few stocks I mentioned last week are still interesting to me for short term long plays. These include:

• $KFN – per @ kunal00.Volume is up and a move in financials could push this one strong through MA50
• $CPBY seems eager to push through MA50. I”m already in and ready for the move.
• $EGT continues to tighten up the bollinger bands. I’m interested above 22.5
• $DNN sitting on horizontal support on descending triangle. Looks more like a short than a long opportunity, but worth watching either direction.
• $FIG is ridiculous.  Could it tighten down more on MA20/50/200?  I will play a breakout.
• $NOVL – testing the hell out of MA200
• $BZH – tightening triangle on MA200.  Careful, looks more bearish than bullish here.
• $HOV – descending triangle sitting on horizontal support ant MA50.  Must hold here, or it is a short play. Of course, I would love a triangle breakout to the upside.
• $ALD – chart shows tightening bollinger bands with improving Full Sto.
• $SNV  – I like entry above MA50 if financials move.  chart
• $DCT – looking for MA200 breakout. chart
• $EROC – interesting trading lately after large gap-down. Eyeballing for move over 3.75. chart

That’s enough for now.  Watching too many charts can do more harm than good.  I’ll try to keep an eye on these with a constant ear on what’s buzzin on Stocktwits.

Tags: ALD, BZH, CPBY, DCT, DNN, EGT, EROC, FIG, HOV, KFN, NOVL, SNV

I’m Back

© www.mcawilliams.com

I took a few days off from the wonderful world of trading to finish up a few projects around the house and just relax.

Now that many of the to-dos  are in my rear-view mirror, it’s time to, cautiously, put one or two toes back in the day-trading pool.

I currently own CPE, long, (bought on MA20 last week) and sold a lot of positions last week for great profits – ICO, HERO, and more.

Watch List Clean Up:

WOW. I really wish I would have played more from this list – especially Friday.  Good grief – the breakouts were numerous.

• PMI - 50MA bounce – as hoped.
• ICO – kaboom
• CENX – double kaboom.
• AES – strong moves Thursday and Friday
• PCX - wow. Where was I all week?
• ARNA experienced massive moves Wed/Thursday. Beautiful day trades.
• ALD – KABOOOOOM  thank you ma’am.
• BEE still interesting.
• ACAS – I feel ill with all of these winners off of the watch list.
• NOVL – still interesting. MA20/MA50 about to collide with triangle.  Looks more like a short than a long.
• MWA – yet, another.
• IM - go go go

Ok, that was painful.  I missed out on so many opportunities that were right there in front of me.  Oh, well – time to look forward – the Watch List is cleaned up and ready for new additions (next post).

Tags: ACAS, AES, ALD, ARNA, BEE, CENX, CPE, HERO, ICO, IM, MWA, NOVL, PCX, PMI

What a Great Day!

Man, oh, man… the Watch List had a big day and continues to perform.  However, just because I post a list of stocks that I’m watching, doesn’t mean that I’ll take a position.  Instead, I like to watch the action of each and then try to pick a few that breakout.  For the stocks I do jump in, I immediately set a stop below the previous resistance/setup.  As it moves up, I raise my stop or set a trailing stop. I try to avoid as much risk as possible…

Watch List Thoughts:

ICO – good day, but not a breakout. I have a position  at $1.94 with a crazy tight stop. I’m hoping for a move on Monday to follow the great move in PCX (also on my watch list)

PLD – looks like MA20 might be the new support.  I might buy and hold for swing with eye on MA20 support.

AES - I’m really interested in a possible swing trade through trendline resistance.

PCX – nice move through horizontal resistance with volume. May have more upside.

FIG – removing FIG from Watch List after major breakout.  There may be more upside, but I’m not looking for entry right now.

GNCMA – still doing the rain dance for a $7.50 breakout.

GLD – yes, GLD moved up today as I hoped, but where is the volume.  CDE or HL was the way to go for a quick scalp.

DIG – watching at $25 horizontal resistance.

ALD – hitting against the top of an ascending triangle – might go long above.

BEE – I’m starting to really like BEE. Accumulation volume and seeing a lot of support on MA50.  Might see an MA20/50 crossover Monday.

LJPC - I’m giving up on this one, for now. I’ll watch from a distance.

NEXM – still strong

MPEL – great move today. Check out the volume accumulation.

BC – BBBBBBBBBBBBBBBBBBBBOOOOOOOOOOOOOOOOOOOMMMMMMMMM.  My play of the day.  Moved well through horizontal support and never looked back.

ALTU - KAAAAAAAAABOOOOOOOM.

Tags: AES, ALD, ALTU, BC, BEE, DIG, FIG, GLD, GNCMA, ICO, LJPC, MPEL, NEXM, PCX, PLD