Swing Trading Watch List – Oct 20, 2011

19 Oct

That’s right!

We’re brining back the daily watch list. As most of you know we primarily trade options on the stocks outlined here, but the underlying stock can also be traded in the same way. Stay tuned for a more detailed description of the trade setups and the HLB/LHB strategy.

Stocks to Watch on 10/20:

Longs: GIS, RAI, LTD

Shorts: CRZO, SPN, RIG

Current Positions: DLTR (long), CNP (long), NFLX (short)

The Strategy

To briefly outline the strategy, we are not looking to enter long until the high of the low bar is pierced.

In other words, we would look to enter GIS long on 10/20 once we break $39.95 until we break 39.93 (the high of the low bar). I like to give it a $0.10 cushion.

Example of a Long - Break of the High of the Low Bar - DLTR

Example of a Long - Break of the High of the Low Bar - DLTR

 

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3 Responses to “Swing Trading Watch List – Oct 20, 2011”

  1. Tim Racette October 19, 2011 at 8:45 pm #

    What other stocks are you watching this week?

  2. Matt October 20, 2011 at 7:56 pm #

    Watching NVDA….a double bottom has been confirmed….looking to verify new support level. I’m thinking NVDA will find support at the 20-day moving average or back down to $12.00 for a triple bottom. What do you think?

    • Tim Racette October 20, 2011 at 8:12 pm #

      I trade stocks under $15 so I can’t really comment in depth on NVDA, however it appears to be in a sideways range from $11.50 and $16.00 so getting long near 11.50 or short near 16.00 would be my personal move.

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