Swing Trading List for Shorting Stocks

Some people might worry today about the market selling off just a small bit (6 points on the SPX so far today), particularly when you couple it with what we have seen out of the GDP report that came out this morning. Frankly, I am not concerning myself much with the GDP. Not by choice, but because the markets really don’t care about the economy. 

At this point, it isn’t the market’s job to discover that this economy sucks, because it already knows it sucks and not getting better anytime soon. But what it also knows, is that it will continue to rise as long as the Fed willingly chooses to prop it up, and run there quantitative easing (QE) programs as well. 

Don’t fight the trend, as that never wins, but let the price action that you see before you dictate how your trade and in which direction. 

With that said I still keep a short watch-list just in case market conditions do change. I want to be prepared, and always be ready to flip at a moment’s notice from being bullish to bearish if need be. 

Of the three setups that I like the best are Valero Energy (VLO) which has managed to sell off and the retest the underside of a head and shoulders pattern. M&T Bank Corp (MTB) has undergone a nice distribution phase followed by the first wave of the leg down. Recent price action has allowed for it to retrace back to resistance offering a solid risk/reward setup. Brookdale Senior Living (BKD) has a near perfect head and shoulders pattern that has recently confirmed and now is forming a bear flag on the daily chart that also is confirming at the time of this post. 

Here’s the rest of my short watch-list.