by Ryan Mallory

Swing-Trade Setups for just this kind of market

We are showing  here in the last hour of trading some bearishness despite the ramp up that occurred from this morning and onward. I don't expect us to turn red on the day, but the bulls clearly aren't comfortable in their own skin no matter what the gains are on the day. 

On the day's lazy trades long and short, I've tried to be as careful as possible (and conservative) with the long setup. Dominoes Pizza (DPZ)  is testing a long-term trend-line in a rising channel over the past couple of days, and why this trade setup is so alluring is that it allows you to play the stock without much risk at play, due to being able to place the stop-loss just under the current price consolidation and trend-line. 

The second one comes in the form of Alexion Pharmaceuticals (ALXN) which has, quite frankly, been a great short setup all year long. Now it has retested the underside of support and is looking to move lower yet again. 

by Ryan Mallory

My Complete Short Watch-List for Swing-Trading

The market is showing all sorts of weakness today, and my belief that the dead cat bounce is...well...dead, is at the forefront of my mind right now. 

With the SPX giving up the day's gains and heading southward only solidifies my belief. 

I've already added one short position, and plan on adding possibly another one before the day's end. 

Here are the three swing-trading setups in particular that I am watching going into the afternoon:

Unilever N.V. (UN) has a nice lower-high in place and oh so close to putting in a new lower-low and forming a new downtrend as a result. 

Cemex SAB (CX) with a double top in place and below $10.25 it confirms and the selling speeds up. 

by Ryan Mallory

Classic dead cat bounce up to this point

We're getting a bounce out of this market today, and while I'd like to think it is more than a dead-cat bounce, at this point, it doesn't look like that. Dead cat bounces can and usually lasts a few days, so don't take today's strength and just start shorting away, because it doesn't usually reverse again the following day.

Often times the dip buyers will keep pushing the market higher, and then when that runs out then the next wave of selling comes in.  So take this rally today as a grain of salt. At this point, I am viewing the rally as an opportunity of where I can get out of existing long positions. Unless the profile of this rally changes, the only thing that is prudent is to view this market as a simple bounce and likely one that will be shorted again. 

But just in case this market is more than a dead cat...

I've included my long set  up swing-trades for the week ahead. A number of those that were on the list last week have been taken off simply due to how they reacted with the markets weakness from this week. The top ones from the list that I am watching are those that have performed under pressure this week they are: