Good morning swing traders and welcome to the Compound Trading Weekly Swing Trading stock picks memo (Part 1 of 3) for the week of April 2, 2017! $BABA, $VRX, $NFLX, $WYNN, $URRE, $TAN, $TWLO, $GSIT, $AXP, $ABX, $RIG, $XLE, $SLX, $X, $XME, $AKS and more.
Email us at [email protected] anytime with any questions about any of the swing trades listed below. Or, if we get bogged down private message Curtis in trade room or direct message him on Twitter. Market hours are tough but we endeavor to get back to everyone after market each day.
Notices:
Good morning!
The following are some of the stocks we are looking to add to our coverage and for now remain on our watchlist only (until this near term decision in markets plays out): $LIT, $CEW, $MYL, $TZA, $TREE, $NVDA, $SOXS, $KBH, $BCOR
Also, one point of discussion with coaching students lately has been returning to the triggers to use when buying and selling swing trade positions – this becomes vividly important especially in times of market chop.
As such, it is critical to understand the basics of PTPTRR – Price Trigger Power Trade Risk Reward. If you do not understand the basics of these principles you need to either get some quick coaching (usually five hours or less is all that is needed) or study up and research these important skills on your own – BUT do not swing trade until you know the basics of these principles please – thanks!
https://twitter.com/CompoundTrading/status/846144297795694592
Specific to our picks below, we have updated the most important information and will flesh this out more as we go.
This weeks publication is in three parts:
You can consider this new document below Part 1 of this week’s picks and the previous picks Part 2, you can find the previous swing trading picks updates here.
Also, click here for a weekly public post on swing trading simple charts for $DXY, $USDJPY, $VIX, $WTI, $GLD, $SLV, $GDX, and $SPY that we will call Part 3 of this weeks picks.
When using live charts (if and when provided), you can either press play button on chart (once opened) for a quick view or click the share icon at the bottom right of chart (just right of the thumbs up symbol) and then click “make it mine” – this will open chart in your browser. Any problems with this let us know. Also, please note, we can only create ten new live charts on TradingView a day so that is why you see some with live charts and over time we publish them.
Indicators on charts are represented as; 20 MA light blue, 50 MA Purple, 100 MA dark blue, 200 MA pink. 8 EMA Yellow, 21 EMA Green. VWAP when available orange.
Any updates below specific to the more recent reports are highlighted in red to simplify the process for you.
Stock Picks Coverage
$BABA
April 4 – Holding long 500 shares from 104.64 now trading 108.17. It is testing all time highs and we may add on a break of all time highs. If it pulls back we may cut for a small profit. First price target is 111.40 (see below)
$BABA Live chart with indicators including that SQZMOM indicator – sweeet tool! https://www.tradingview.com/chart/BABA/Lbao9BVu-BABA-Swing-Trade-going-well-Our-Swing-Trading-side-is-in-at-10/
$BABA Swing Trade going well. Our Swing Trading side is in at 104.64 trading at 108.17. #swingtrading pic.twitter.com/x2zOezrBQ3
— Melonopoly (@curtmelonopoly) April 4, 2017
March 27 – We’re long 104.64 500 shares March 22 at test of 20 MA. Stop is at our entry and we are looking for a fresh break-out. However, the market sentiment is not great right now so we are unsure. There is an upside pivot at 111.38 we are watching for resistance should price continue up. Also watching MACD close.
March 20 – Wait for MACD to turn up and confirm and stay long until MACD turns down. The Stoch RSI seems to be frontrunning the MACD fyi. $BABA is one of my favorites right now and I see a long entry early in the week.
$BABA Live Trading Chart – https://www.tradingview.com/chart/SPY/GsGBi5f2-BABA-Daily-100-MA-50-MA-Cross-MACD-Pinch-SQZMOM-up-Stoch-RSI/
$BABA Daily 100 MA 50 MA Cross, MACD Pinch, SQZMOM up, Stoch RSI up. Wait for MACD for long. #swingtrading
$NFLX
April 4 – March 29 we entered 145.50 500 shares when MACD turned up per watch trigger below. Stop is at flat at entry and we will re-enter if we have to. Will look at adding pending triggers – will advise.
$NFLX Live chart with indicators https://www.tradingview.com/chart/NFLX/ozKJQ8t4-NFLX-March-29-we-entered-swing-trade-145-50-when-MACD-turned-t/
$NFLX March 29 we entered swing trade 145.50 when MACD turned, trading 146.82, stop at flat and re-enter if we have to. #swingtrading pic.twitter.com/DI8fiL6nsv
— Melonopoly (@curtmelonopoly) April 4, 2017
March 27 – MACD has been flat or turned down since last post. Looking close at MACD turn up and entry this week.
March 20 – The only thing that concerns me is the price staying above approximately 145.05 as a low on any given day. I may also look for that in addition to indicators lists below. Same thing with this one, exit when MACD turning down. Chances are high I will enter long early week.
Live $NFLX Chart – https://www.tradingview.com/chart/NFLX/4RQP5P9P-NFLX-Daily-abover-20-MA-Stoch-RSI-Revved-MACD-turning-up-SQZMOM/
$NFLX Daily abover 20 MA Stoch RSI Revved MACD turning up SQZMOM watch close for green. Long on MACD and QZMOM confirmation.
$GSIT
April 4 – $GSIT finally cooling off and coming back to earth. Watching that MACD very close for a turn up (after it returns to bottom hopefully).
Mar 27 – Sure enough, it was on its way to the 20 MA this past week and stopped short and got some lift and closed Friday sitting on 8 ema. Will wait for it to line up.
Mar 20 – The reason I have this on the list is because as a break-out stock it is about as clean as they come, however, break out stocks come with risk. So you have two options (and shorting right now isn’t one), you can either wait for it to get near a 20 MA test and go long when other indicators line up or open a short time-frame chart and trade it. I will be waiting for the 20 MA test.
GSI Technology, Inc. to Present at the Global Predictive Analytics Conference http://finance.yahoo.com/news/gsi-technology-inc-present-global-173705866.html
$GSIT in break-out. Daily Stoch RSI peaking, MACD near peak, SQZMOM near peak. Wait for 20 MA retest and MACD confirm for long.
$AXP
April 4 – $AXP American Express. So close. SQZMOM about to turn, MACD cross on deck just need PTPTRR to line up. Need volume & power. #swingtrading $AXP Price Trigger Power Trade Risk Reward – PTPTRR #trading Over the Wall!
March 27 – MACD has turned down and SQZMOM is red and negative but Stoch RSI is starting to curl – waiting for that MACD to take an entry.
March 20 – This is a trend play. The only thing you have to do is manage your entry point and risk. Wait for indicators to confirm next leg up about to start and take long entry. When MACD turns down on daily that is your exit. I really like this one, especially because MA’s are all on right side (aligned) and trend reversal is in place.
$AXP Setting up for next possible leg up. Wait for MACD SQZMOM Stoch RSI to turn up. Will likely test near 100 MA at min 50MA.
$ABX
April 4 – $ABX Setting up nicely. Above 200 MA, wait for Stoch RSI to return to bottom and turn if possible, be sure SQZMOM green and MACD turns up and kapow. Some volume and power would help too.
March 27 – Very close now. SQZMOM just turned green, MA’s are starting to line up but not all yet, Stoch RSI is turned down at top of range so I would like to see it at bottom when we enter and the MACD is turned up. So we’re waiting for the MA’s to line up and the Stoch RSI to be near or at bottom curling up (ideally).
March 20 – I will enter a long when price above 20 50 100 200 MA’s and will likely wait for the 200 MA to cross 100 MA (although not absolute). Like with all others I will exit when MACD turns down.
Freeport a better buy? https://www.fool.com/investing/2017/03/18/better-buy-freeport-mcmoran-inc-vs-barrick-gold.aspx
Inflation may send Gold higher. http://ir.baystreet.ca/article.aspx?id=528&1489764218
$ABX Daily MACD turning up, Stoch RSI way up, price on 20 MA, SQZMOM needs to confirm, 200 MA 100 MA cross would help with price above.
$TAN
April 4 – NA
Mar 27 – $TAN chart is now “broken” and price is on its way to the lower pivot around 16.44. All indicators are pointing to down. It closed Friday at 17.29. So we will keenly watch it as it nears the lower pivot and see if the indicators line up for a long trade. If it lost lower pivot we may even consider a short side entry pending indicators.
Mar 20 – Nice reversal play if it turns out. In addition to below watch the 200 MA as resistance if you go long.
$TAN Reversal Play. Daily MACD needs to turn up, Stoch RSI is up, SQZMOM needs to turn up. 100 MA about to cross 50 MA – bullish.
$VRX
April 4 – I thought I’d run a poll on my Twitter feed to help us with this one.
$VRX Premarket is up 1% – Could this be the bottom?
— Melonopoly (@curtmelonopoly) April 4, 2017
$VRX Premarket up 1%. MACD cross flat… is this the bottom?
$VRX Premarket live chart https://www.tradingview.com/chart/VRX/F7bVqHl7-VRX-Premarket-up-1-MACD-cross-flat-could-this-be-bottom/
March 27 – $VRX continues stepping down on the chart… per below, really important to wait for all the indicators to line up. So we remain patient and watch.
March 20 – This was looking like it was going to curl up last week and bounce but it failed. A great example of carefully watching a falling knife indicators before taking a long position. Use patience and when all indicators in play take a long.
$VRX Bottom Play. Daily MACD needs to turn, Stoch RSI turning up, SQZMOM needs to turn then as MA cross-overs occur it will strengthen.
$TWLO
April 4 – No change.
March 27 – Price failed when it had to poke through 100 MA and continue – it failed and is on its way (possibly) to the previous low. So here, as with $VRX we employ patience – but get ready because the long in this one will be decent. Use the indicators noted below.
March 20 – Looks like bottom may be in. It is trending up. Looking for 100 MA to cross down under 20 MA (pinching now) and price to trade above 20 MA for long. Be sure to wait for MACD to confirm also first.
$TWLO Bottom Play on Watch. 100 MA needs to cross 20 MA with price over them. Stoch RSI pinch, MACD pinch, SQMOM turning up not green.
$WYNN
April 4 – We triggered a stop at flat March 27 and had a re-entry at 111.04 when we looked at it again for 500 shares. Currently trading at 116.00 and we are watching MACD. Which is currently at top. We may exit as MACD turns down and re-enter when MACD turns back up. Alternatively we may ride the MACD turn down as long as our original entry isn’t triggered as stop and when MACD turns back up add to position. Both are valid and we are undecided.
March 26 – We took a long position at 110.93 for 500 share start on March 21. HOWEVER, we have a stop at our entry price (due to current market sentiment) and it is currently trading at 111.92. Careful with this one.
March 20 – This isn’t easy to swing but is so hot it would be foolish to ignore, so discipline like with so many other plays in the current market is required. Seeing it hold 110.00 for a full day with indicators in line would put me in a long position.
$WYNN 200 MA needs to cross 100 MA, trade over 110 full day. Stoch RSI peaking, MACD up, SQMOM up.
$XME
March 27 – Price action has been poor since last report, the 200 MA is just below price now so we are going to see if the indicators line up for a bounce long position.
March 20 – MACD is pinching and about to turn up, also waiting for price above 20 MA. This is a great looking chart and an argument could be made that a long position before everything lines up as I noted is sound. It’s a great looking chart because MACD is bottom (for clarity), so when it turns if all other indicators look good there should be room for a decent trade. Caution should be noted that now after having gone through a number of charts this evening the market is at a decision so any swing trades should be considered at length and stops should be tight IMO.
$XME Daily MACD pinching, SQZMOM starting to turn, Stoch RSI peaking, Price needs 20 MA
$URRE
March 27 – Almost a replay from last week (the indicators), so we remain patient and watch.
March 20 – Like so many of the charts this week, there is indecision. However, if the indicators line up this has excellent upside potential. The MACD pinching at the bottom is key IMO.
$URRE Daily MACD pinching at bottom, Stoch RSI turn up, SQZMOM needs green, price needs 20 MA.
Others on watch but not ready to report charting:
$RIG
March 27 – It is holding its 200 MA like a trooper, but I want to see it at least be over 20 MA and other indicators to line up.
March 20 – MACD pinching, watching for it to turn up, Above 200 day but needs to trade above 20 MA for long.
$XLE
March 27 – The 50 has crossed the 100 and the 20 the 200 to downside – this is very bearish in the near term. Watching. It does qualify as a short and best when MACD at top turning down and Stoch RSI at top turning down with confirmation of price action and MA’s.
March 20 – MACD pinching, watching for it to turn up, Needs 200 day and to trade above 20 MA for long or it becomes a short.
$SLX
March 27 – As with $XLE above this also qualifies as a short (pending short term indicators lining up when you take the position). Price lost the 100 MA and the indicators are negative – very bearish. Watching.
March 20 – MACD is pinching on the turn back up – waiting for it to turn up and 45.50 to hold for one day to confirm break out. Or, on downdraft I would look at a 100 MA long entry also.
$X
March 27 – The $X trade is almost identical to $SLX above. Waiting.
March 20 – This one is riskier than most on this list, however, I am watching the MACD for a turn up for a possible long.
$AKS
March 27 – AKS is coming in on the 200 MA test. Watching.
March 20 – MACD is turning up now, watching for price to trade above 20, 50, 100 that are clustered together. It is well over 200 MA.
Email or DM me on Twitter anytime with thoughts or questions!
Cheers!
Curtis
Article Topics; Compound Trading, Swing, Trading, Stock, Picks, $BABA, $VRX, $NFLX, $WYNN, $URRE, $TAN, $TWLO, $GSIT, $AXP, $ABX, $RIG, $XLE, $SLX, $X, $XME, $AKS