Wow! It’s been a fantastic week, so I wanted to do a swing trade review. Today in the Swing Report, we booked profits in 4 stocks! Who said it’s tough to trade in a bear market?
I always laugh when traders use bear markets as an excuse for poor performance. Here at Bulls on Wall Street, not only do we not use a down trend to justify poor performance, we embrace it and expect to make money.
Remember the February 24th webinar where we talked about how to swing trade in this market (in case you missed it, you can view it here)? The key theme is that what worked in 2015 has flipped in 2016. Social media and FANG is out, and commodities are in. So are “bottoming formations“.
My recent $FCX trade is a great example of how we have identified and taken advantage of this new market.
Let’s look at the key elements of this trade:
- The mid-February break of the downtrend
- Underlying volume showing accumulation. This means the big guys are stealthily buying at lows
- The break of the 50 day moving average
- Price actions shows strength at the 50 DMA and pulls back to the 9 EMA.
That was the entry signal.
Swing Report members were notified of the entry at $7.10. The first partial exit was at $8.20, followed by today’s full profit at $9.30 for a 23 percent gain. The total profit was about $3300. I hope this swing trade review makes the important components of this trade clear.
We also took profits in $SPXL, $CMG and $ERX today as well. We’ll discuss these trades and more in a video blog post next week. Keep an eye out for it!
This swing trading service is great for those that work and can’t monitor the computer all day. We have in-depth nightly reports on the gameplan for the day/week and all stock picks that I trade will be alerted and emailed to you.