Trade Setups for April 8, 2010

Additional weakness is being seen in a carry over on the late day sell-off from yesterday as the market was down by as much as 1% at one point. This is some much needed relief for the market, and needs to see a lot more selling in order to work off these extreme overbought conditions we’re experiencing.

As usual, we have the big Jobless Claims report that comes out at 8:30am ET this morning as well as he RBC Cash Index at 9am.

The dollar continues to show strength which keeps on giving my position in UUP a nice healthy boost upwards.

Here are Today’s Trading Ideas

Potential Swing Trade (Long): Devry (DV) – Classic breakout play to all-time new highs (which not many stocks can say), and since breaking through some of the most difficult levels of resistance dating back over two years worth, this stock has had a minor pullback to the previous breakout level, which is an ideal entry for jumping in at. Stop loss should be placed at 63.90.

Potential Swing Trade (Short): Petrohawk Energy (HK) – Nice set of lower-highs and lower-lows, but I would wait for this stock to drop about 1-2% before entering to the short side. Should this market start trending lower, like we saw yesterday, this stock is going to be a good place to put your capital in. Stop-loss at 22.76.

Click here to See the Rest of My Trading Ideas.

Potential Swing Trade (Short): Zoll Medical Corp (ZOLL) – Made new highs back in January, but has since been unable to even come close to those levels, despite the market continuing its trend higher. This stock keeps churning lower, and offers a good setup at its current price. Needs to breakthrough the 25.50 level for a major breakdown. Place your stop-loss at 28.45.

Potential Swing Trade (Long): L-1 Identity Solutions (ID) – Fairly nice rally of late, making higher-highs and higher-lows, but needs to breakthrough the 9.50 mark for a legitimate breakout. Pulledback nicely to a support level that offers a nice risk/reward setup. Place your stop at 8.53.