Trade Setups for March 25, 2010

The market is looking to bounce back strong today, after it actually had a day where all three major indices finished in the red. It’s not often that happens these days. Today you have a couple of things that will or at least could rock the market, the first of which is the weekly Jobless Claims report at 8:30am. Then at 10am you have Been Bernanke speaking before the House Committee on Financial Services.

As for the current portfolio, everything is staying as is – no changes to the stop-losses.

Here are Today’s Trading Ideas

Potential Swing Trade (Long): CVR Energy (CVI) – This stock put in a nice inverse head and shoulders pattern in late 2009, that has since broken the neck line and put in a series of consecutive higher-highs and higher-lows. You have here the opportunity to by this one on the dip. Recommend that you place your stop loss at 8.27.

Potential Swing Trade (Long): Sigma Designs (SIGM) – After declining since June of last year, this stock appears to have finally put in a bottom, and may be ready to reverse its fortunes. The stock has broken out from a double-bottom formation, and has since had a mini-pullback to the 50-day moving average. This provides for an ideal entry point, and a stop-loss of around 11.05.

Click here to See the Rest of My Trading Ideas.

Potential Swing Trade (Long): AMR Corp. (AMR) – Another stock that has been on a raging tear with the broader market, quadrupling itself in value in the process. This stock recently made new highs but pulled back enough to provide a solid risk/reward setup. Place your stops at 8.32.

Potential Swing Trade (Long): Hutchinson Technology (HTCH) – Spent the beginning of the year, in a significant decline, but has used the past couple of months to put in a bottom, and trade sideways. Of late, the stock is putting in higher-highs and higher-lows, and looks to provide a solid trading opportunity at its current price level. Ideal stop-loss is 6.32.