by Ryan Mallory

I'm really liking these swing trade setups.

The problem is whether this market can bounce back and push higher, or whether we are in a longer-term distribution phase of this market that will ultimately send it lower. 

I'm not a big fan of making a wild guess, so for now, I'll simply say that "I don't know where this market goes from here". Precedent says that the dip buyers will come to the rescue yet again, but the big dirty secret is that that can't last forever. 

Southwest Airlines (LUV) has a fine looking amount of consolidation in a well confined space that should it break out to the upside, it could do so in a very explosive manner. 

The second is a short setup that had once been a long I was watching. But Walter Energy (WLT) quickly broke down and formed a longer term down-trend and and is now confirming the bear flag that it had recently been trading in. 

Here are the swing trade setups: 

by Ryan Mallory

Humana (HUM) with ascending triangle breakout

I've only added one new trade so far today. A lot of stocks are trading at some heavy extremes intraday, particularly when you are basing it off of Pivot Points. I don't like to trade stocks when they are above the R3 level intraday, like we see in Amazon.com (AMZN) which has a great looking breakout on its hands on the daily chart from the recent short-term descending channel. 

But Humana (HUM) has everything that I am looking for in a stock toda... not overcooked... with a favorable price pattern and a breakout of consolidation. 

I am long from on this stock from $80.60. 

Long: Humana (HUM). 

by Ryan Mallory

I've added all three of these stocks to my watch-list today, as I found the price action very inviting. 

As with any small cap/low dollar stock there is a lot more risk that is involved in trading them, but with that comes the alluring possibility of out-sized gains that might not otherwise be realized trading a large cap stock. 

The three stocks below, Frontier Communications (FTR), Revolution Lighting Technologies (RVLT), and Central European Media (CETV) all offer valuable trading opportunities for right now, and if you are into the small cap trading like I know many of you are, you would be foolish to not add these stocks to your watch-list just as I have done. 

And it just isn't swing-trade setups that you can use these for, I would say they also fall into the day-trading category just as much as I would consider them to be a swing trade too. 

Here are the three small cap swing trade setups.