Stock Swing Trades to keep an eye on, based on strong trending movement and the price finding support after a pullback. Stocks mentioned: $KEM $MRCY $NTAP
I don’t want these articles to be viewed as trade signals, but rather a learning device. There is a lot more to trading than just buying at price A and selling at price B. There is risk management, position sizing, trading psychology (sticking to a plan, etc), being aware of earnings, different order types, and stop loss and target levels that are based on the stock’s specific movements.
Practice in a demo account until you have proven yourself consistently profitable with the approach. Only then should any real capital be risked.
For further guidance on swing trading, see the Stock Market Swing Trading Video Course. Some of the stocks mentioned are a variation of the strategies discussed in the course, and I will explain how those variations work in the examples below.
Swing Trades Recently Underway or To Watch
The three stocks I will discuss this week are all in very strong uptrends. They have pulled back, but the selling has stalled out.
These stocks were found using Finviz.
Criteria: Average Volume>500K, Industry=Stocks Only. Hit the Performance Button, sort by Perf Year (descending). Go to the Technical tab and set 52-Week High/Low=0-10% Below High. Click the Charts button to view the results in chart format.
Still a lot of stocks to sift through, but the last few weeks have produce some great trading opportunities within the first 5 or 6 pages. Don’t expect to find a trade every day. We spend the 20-30 minutes sifting through stocks each night, but only need to find one or two trades a week that we really like.
Comments are on the charts. To use these charts, click the play button to see how the price action has unfolded since the chart was published. Click Fullscreen for a bigger view, and click Fullscreen again to come back and keep reading.
Kemet Corp (KEM)
See more of charts at VPTcory
Mercury Systems (MRCY)
Netapp Inc. (NTAP) (earnings near end of month–caution).
This one hasn’t triggered yet, but is on the radar.
Losing trades WILL happen. Don’t risk more than 1% of your trading account on a trade (risk = difference between entry price and stop loss price, multiplied by the number of shares). There is always a risk in trading, and you can lose much more than you expect (even when you think you are only risking 1%). Don’t risk real capital unless you know what you are doing, have proven yourself profitable in a demo account, and can financially handle the ups and downs that come with swing trading.
By Cory Mitchell, CMT
Disclosure: This article should not be viewed as investment advice, and is not a recommendation for you to buy or sell. These are trade examples of a specific strategy. Past performance is not necessarily indicative of future performance. Unless expressly stated, I don’t have positions in the stocks mentioned..they are just examples for educational purposes.