First, let’s update the two ‘Swingers Daily’ from this weekend and reiterate their purpose, why I chose them, and the criteria I use to find these stocks.
Swingers Daily is something I’ve started to offer those of you with little to know time to watch your trades. The criteria is fairly simple:
- Low Beta – I want to keep volatility low – if you can’t watch your trades, then the last thing you need is a collapse in your portfolio when the market opens. Low beta stocks tend to trend with the market and should reduce surprises. Of course, anything can happen, but it’s a good place to start.
- Strong trendline and/or SMA support moving in one direction over the last 6 months, OR
- A bottoming pattern and apparent turn back up. A bottoming pattern should reduce your downside risk and of course, from #2, a stock trending in one direction implies strength. It also gives us good stops and targets.
OK, a look at the two from the weekend – Q and TEVA.
Q is behaving well. It’s been slowly creeping up and today had a nice gap-up. Volume is still strong and Q experienced a MACD crossover today. Still bullish. Stops moved up.
TEVA is not behaving well… but, again, with its low Beta, it hasn’t fallen apart completely (down only 5 cents today).. Like most swings, I’m not interested until SMA10 pushes north of SMA20. Keep an eye on this one, but I’m not ready to swing it quite yet.
Tonight, I have 3 new stocks to look at that all have a similar setup…(from the watch list):
These stocks all represent bottom feeders that are turning the tide and may be ready to swing back up..
MTG – Notice from the chart below, SMA100 is a key pivot point. Today, MTG stuck itself right on SMA100 with improving volume. For a swing I’m looking for an SMA10 cross over SMA20 and the ADX(DI+-) to cross to the bullish side. If these two things happen, the swing is available with a 10.75 target. Beta is a little high on this one, but a trailing stop should prevent much pain. Watch news on this on – earnings not till January.
PMI – Same setup – Watch for volume and ADX crossover. Again,SMA10 is below SMA20, so I’m not ready to swing long.. when/if it crosses I’m looking for a gap fill over 3.75 (might be some profit taking at SMA100, so that’s a watch spot).
SNV – This is probably the best looking of the 3. Very tight bollinger bands and nice price move today. Only concern is volume. It will need more to make this swingable. Targets 2.20, then SMA100.
As with all of the Swingers Daily stocks, they need to be managed. Don’t assume these are buy and hold stocks. If you do take a position, you’ll need to adjust your stops and take profits when they weaken.
Have a great Thursday.