Trade Setups for April 12, 2010

Flirting with 11,000 on the Dow, the futures actually broke through that barrier over night, but since having reached it, has steadily sold off and the market is essentially at a break-even level heading into the open. Today is a big day for the markets, as earnings season officially kicks off, and it will be interesting to see whether the market can hold on to this year’s gains after all is said and done. There are a lot of people speculating that the market has already priced in a positive earnings season, which will likely lead to a “sell-the-news” mentality once the numbers start coming in.

As for economics reports coming out today, it should be fairly quiet, as there aren’t any noteworty reports scheduled for release. However, after the bell, Aloca (AA) releases their earnings, and will set the tone for the earnings season going forward.

Here are Today’s Trading Ideas

Potential Swing Trade (Long): Ebay (EBAY) – Solid breakout play here, and has pulled back to the support that represents the breakout level. This stock looks like it has a lot of upward movement left in it, and this resting point that it is currently at offers an ideal entry point. Place your stop-loss at 25.11.

Potential Swing Trade (Short): Zoll Medical Corp (ZOLL) – After putting in new highs back in January, ZOLL has put in consecutive lower-highs. Ideally though, it needs to break through the 25.38 price level, before it can be considered a true breakdown. However, The upward trend that started in March ’09 has been broken, and has a very bearish profile about it. Place your stop-loss at 28.45.

Click here to See the Rest of My Trading Ideas.

Potential Swing Trade (Short): Everest Re Group (RE) – Trending lower since October of last year, this stock has experienced a light-volume rally, that looks likely to be sold once again. Place your stop-loss at 83.13.

Potential Swing Trade (Long): Strayer Education (STRA) – This stock has essentially always gone up since 2003, even from a long-term perspective STRA, during 2008 looks like it merely consolidated rather than fall off the cliff like most other stocks did. Nonetheless, this stock is doing what it has always done and that is breaking out to new highs, once again. Its pullback to its previous high offers a solid risk/reward setup. Place your stop at 227.00.