Swing Watch List Clean Up 3-8-11

As you know, the last week has seen increased volatility and larger intraday spreads between market highs and market lows.  In the SPX chart below, the first thing that jumps out is that the market is forming a symmetrical triangle.  These triangles usually squeeze down and then the price shoots heavily above or below.  This is NOT the time to gamble.  Don’t over expose yourself overnight and HONOR those stops.

More about the SPX…

Volume is steady – in other words, no panic selling or bandwaggon buying, either.  The market is waiting for something.  In the meantime, the news is driving the intraday action up and down and making the big firms millions.  It’s a great day trading environment as long as the market stays in this triangle.  It’s a tricky world for swingers.  When will long swing traders participate (traders willing to hold more overnight)?  It will happen when this triangle is broken one way or another.

This Thursday and Friday, we will see a lot of economic data.  This, combined with any significant moves in oil will likely break the SPX out of this triangle.  How do you prepare?   Don’t go to bed with very many stocks and the ones you do need to be more ‘stable’, with obvious support levels, and with stop orders in place.

Thursday:

International Trade
8:30 AM ET

Jobless Claims
8:30 AM ET

Friday:

Retail Sales
8:30 AM ET

Consumer Sentiment
9:55 AM ET

Business Inventories
10:00 AM ET

Oil Futures:

Futures Charts Powered by Futurespros.com – The Futures Trading Portal.

OK. Let’ s dive right in and clean up the watch list.

MFC – I’ve had this one on the watch list for a while and it deserves to remain.  Check out the daily.  Nice triangle forming and we’ll watch for a move out of top to consider long swing entry.  New entry position at 19.20.  Looks good, just not quite ready.

AINV – Chart looks really good.  If we can get over recent highs, there could be some buyers.  Entry still just over 12.45

TQNT – Currently in bottom of channel and possibly worth entry IF market (SPX or SPY) break above current triangle.  Watch other semis for confirmation.

VLNC – Long onver 1.65, but be careful here. Don’t jump in heavy. It’s a better scalp than swing, but there might be a run in it if volume takes it strong through 1.65

OKE – Watch it closely for break of $65

AA – Still worth watching, but let’s wait on it to get through SMA20 to before going long in this choppy market.

ROK – Triangle forming. Definitely worth a watch.  I like it over 91.

JNPR – Still consolidating here. Keep an eye on it. Volume is still pretty good.

EMC – It’s hanging in there, but let’s not jump in early. It’s too close to falling off the SMA20 cliff.  I’m interested when it gets back up to the 27.60 area.

RTN – Getting close.  I don’t like the tall shadows on the candles, but we still need to keep an eye on it.

I’ll look to add more to the watch list throughout the week.