Trade Setups for April 5, 2010

With a full week ahead of us, the futures are showing some positive momentum heading into the open. It will be a much quieter week than what we saw last week with all the jobs reports that had come out. For today, you have the ISM Non-Manufacturing Index and Pending Homes Sales, both of which come out at 10am, and that will pretty much be it.

I am still long UUP, and likely will be for most of this week, unless we see a significant sell-off in the equities.

Here are Today’s Trading Ideas

Potential Swing Trade (Long): Watsco (WSO) – In the month of February, this stock showed that there was still a lot of gas left in this stock’s tank, breaking out from the September highs of last year. Since breaking out, the stock has consolidated around support of the previous highs. Place your stop at 56.44.

Potential Swing Trade (Short): Bally Technologies (BYI) – After making new highs at the beginning of the new year, this stock has completely fallen apart, breaking critical support levels, and putting in lower lows in the process. Right now it is trading below those critical support levels still, but to close to my desired stop-loss to go short in right away – wait for the stock to fall another 1-2% before initiating a short position. Stop-loss should be at 41.25.

Click here to See the Rest of My Trading Ideas.

Potential Swing Trade (Long): Lowe’s Companies (LOW) – This stock has broken through major levels of resistance dating back to ’08 and is looking at potentially surging upwards should the market be able to continue on the rally it has been on of late. Place a stop at 23.85.