Good morning my swing trading minions! The swing trading strategies watch list for today is a little light. There were 89 stocks that came up during my breakout scan but not ONE was worth mentioning or adding to the watch list. If there is nothing to trade, then you trade nothing. You don’t ever force trades just because the pickings are thin!
I try to stick to Breakout Plays for the most part as I like that swing trade strategy the most. They are stocks that have picked a direction already and, with the right technical analysis, have a high chance of continuing further upwards. However, you have to take what the market gives you and right now, it’s not giving me any breakout plays to watch.
My next scan when the breakout plays gives me nothing (or the market has had a pullback) is the TAZ scan — Traders Action Zone Strategy.
CTB. Nice retracement into the TAZ with a higher low and a higher high. The latest candle is red, but it is still a confirmation nonetheless. Notice where the tail of the hammer stops, a previous resistance area You have a clear stop below the hammer, underneath the trendline.
The volume on the hammer day isn’t great, as you would want a higher volume day on a potential reversal candle, so that is something to keep in mind (some might say it isn’t a true hammer because of the short top wick, well, I’m not that picky!)
And that is today’s watch list. Horribly short, wasn’t it? Well, that is the nature of the game.
Right now, the markets are incredibly volatile. They always are but this is a period in which the trend is seriously in question. With no clear set-ups, it’s often best to sit on your hands and just watch the market. OR do what I do and carry on with your life and DON’T watch the markets, haha.
That’s why I swing trade, because I don’t want to watch them like a hawk every day. I come back in the morning, or the afternoon and I get an idea of what the market has done and/or wants to do in the short term.
3 Year Daily Chart of the Dow Jones. It’s Clearly Broken the Main Trend Line.
With where the market is and the uncertain of it, I am fit as a fiddle just sitting on my hands and waiting for a sign of a breakdown or a return to bullish days.