The Hit List is a look at our current swing trading positions. Stocks we are already in have “triggered”, while those we are considering for plays have not triggered. Click post title to view print-friendly link.
No changes
Open Position Notes:
FDX climbed a little bit last week, despite the lack of strength (or movement) in the indexes, and it appears this one has stabilized after its recent dip. I’d really like to see strength return soon with this one, and if it does I’ll look to tighten my stop loss. For the time being though, I’ll leave it as-is while waiting for some follow through. Staying patient for now.
WFMI broke down on Friday as it began to fill the August gap, getting within about 2% of my Target. However, it stabilized with the market and finished off its worst levels. I do like the continuation of the overall downtrend here though, so I’m going to stick with my existing trade parameters for another day.
Closed Positions:
No closed positions.
Hi Jeff,
Appreciate if you please explain. At high level your picks are divded in two groups ( day trade and swing traded ).
My question is that what indicators/factors/points are used to decide that stock would be best for day trade or swing trade ?
Thanks,
-Abdul
Hey Abdul,
I’ll be happy to explain that, and if by chance I still need to clarify anything just let me know.
There are a couple of factors on which I base my decision. One is the overall market conditions. If things have been a little more stable and steady, I’ll usually be eager to add swing trades to my list. This is because we’re not seeing frequent gaps or lots of sudden changes of direction with large reversals like we find in the highly-volatile periods. If things are unsettled and the market is very indecisive or flippant, I’ll shorten my timeframe in order to keep my risk in check. Also, in times of light volume (like last week), I’d prefer to keep my timeframe shorter and book faster profits rather than try to let them run.
The primary technical difference between a play for a day trade and a swing trade is the size of the base. The larger the base, the more sustainable I would expect the move out of that base to be, so I’d prefer to take it for a swing trade. On the contrary, the smaller the base, the less I feel I can trust it, so I’ll take those for day trades in order to keep them on a short leash.
Hope this helps to clarify, and I’m glad you asked this – I am sure many other Bandits have wondered as well. Have a great night and go get ’em on Monday!