This week, or since the Friday high-to-low sell-off, we've seen probably the most consistent wave of selling that we've seen this entire year. In fact, this week alone, we've pushed back below the 10,20, and 50-day moving average, as well as break the uptrend off of the 6/4 lows AND we are currently trading below the critical 1430 level on the SPX that confirms the double top in place.
These are all good reasons to get very weary of this market. However, we are so overextended to the downside, that we've got to be nearing a point where this market bounces to the tune of 1-2%.
Right now I'm predominantly long in this market. I've been stopped out of a few positions, but I have two short positions that are fairing quite well, and long positions in SHLD, AET, and GWW that has bucked the market trend. So it really hasn't been that bad of a week at all.
So assuming we are in a spot where this market bounces, you'll want to be ready to take advantage of it, so I thought I'd share with you the long setups on my watch-list that I think will fare well should this market bounce.
And of course, you can have real-time access to this watch-list by signing up for our SharePlanner Pro trading platform which is still free for traders to try out.
Here's my long watch-list of swing trade setups.
Ryan (@shareplanner) specializes in swing trading strategies and is the founder of SharePlanner which he created to help and teach others on how to trade stocks better using multiple approaches and time frames. Each day you can count on Ryan to provide his trading advice as well as transparency in every trade that he makes. Ryan Mallory resides in Central Florida with a wife of seven years as well as one lively son. More >>
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