Trade Setups for March 26, 2010

Futures are looking to rebound after yesterday’s late day sell-off, but if the bulls are going to keep the early gains that are being seen right now, they are going to have to impress investors with a good GDP number at 8:30am ET.

Other reports to follow this morning is Corporate Profits at 8:30am and Consumer Sentiement at 9:55am.

You could make the argument that the selling action seen over the past couple of days, is the most substantial amount we have seen in quite a few weeks. If it continues, going long in a few more positions becomes a real possibility as the overbought conditions will have been worked off.

Here are Today’s Trading Ideas

Potential Swing Trade (Long): Chico’s Fas (CHS) – This stock has been in a consolidated range since about August of last year. Despite that though, within that range, the stock is  putting in, of late, a nice set of higher-highs, and higher-lows, and following a minor trendline, that still offers a nice opportunity to profit from, even if it doesn’t breakout of its long-term consolidation. Put your stop in at 13.81.

Potential Swing Trade (Long): Dime Community Bancshare (DCOM) – Unlike CHS above that has been trading in a narrow range since last August, DCOM, on the other hand, has managed to breakout of this range and could see a huge rally to the upside. It has recently pulled back to support levels of where it originally broke out from, and makes for an attractive entry at current prices. Place your stop-loss at 12.45.

Click here to See the Rest of My Trading Ideas.

Potential Swing Trade (Long): Spectranetics (SPNC) – This stock has been on the move since the market bottom from last March. Back in late 2009, the stock pulled back from off of its highs, and consolidated at a new base, before resuming the upward trend once again. The entry price for this one is on the pullback to its 2009 highs, and to the trendline of the rally that it has been on for this entire year. Recommended stop-loss is 6.57.

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.