Trade Setups for March 23, 2010

There are some positive vibes out there this morning, as we are gearing up for that opening bell. Obviously the market thumbed its  nose at the health-care industry takeover yesterday, conducted by your local  politician (I think later on today, I will do my patriotic duty and publish a list of every one of those idiots who voted for the bill), and has chosen to continue to move higher. While I try to avoid making bold predictions about the future of the market, I have a hard time believing that this market can continue to move up like it is doing without some kind of pullback in the near-term.

As for my position in BKS, I have raised my stop-loss to 21.64 and in UGI it remains at 24.86. Check out my article from last night for more analysis on my portfolio.

On the economic front, we have the ICSC Goldman Store Sales at 7:45am ET, followed by Redbook at 8:55am ET and Existing Homes Sales and FHFA House Price Index, both of which come out at 10am. Also at 10am you got Timmaaay Geithner speaking before the House Financial Services Committee. I don’t think his words will have any bearing on the market though, but it’s still worth mentioning.

Here are Today’s Trading Ideas

Potential Swing Trade (Long): Fred’s Inc (FRED) – What’s not to like about this stock here that is coming off of a 3-month double bottom formation, and has confirmed the move by breaking through the neckline of the double and then essentially pulling back to give traders an opportunity to go long in this holding before its next leg up. Place your stop at 10.28.

Potential Swing Trade (Long): Taser International (TASR) – A pick of mine as well from back on Wednesday of last week, this stock put in a very nice bullish engulfing pattern yesterday, and offers an even better risk/reward scenario than it did before. It’s holding the 50-day moving average quite well, with the recent spree of selling it has seen of late. Put your stop-loss at 6.07.

Click here to See the Rest of My Trading Ideas.

Potential Swing Trade (Long): Max Capital Group (MXGL) – After reaching new highs in February, the stock has progressively sold-off , retracing itself back to the 61.8% level, before showing signs of possibly bouncing. It is also doing a great job of holding the 50-day moving average as a key support level. Ideal stop loss is 22.65.

Potential Swing Trade (Long):World Wrestling Entertainment (WWE) – Not a fan of the sport at all, but I got to say, that this stock has recently pushed through major resistance levels and after breaking through those levels, earlier this month, has nicely pulled back to where it has now become support and should rally off of this point. Ideal stop-loss is 16.81