Trading Ideas for March 8, 2010

Now that I have flipped my trading bias from bearish to bullish (yes it was a painful experience over the past couple of weeks), I am now jumping on the bandwagon and looking for the euphoria and hype to continue in the days and weeks ahead. The last thing I want to have happen is that I become a contrarian or reversal indicator of when not to be long or short.

Nonetheless, the market is currently trading flat as it heads into the open. I am completely cash, and have been wrestling around with tweaking my trade management skills, and in particular my trade management in lieu of general market direction. It might be worth reading my article from last week, if you haven’t already. The market’s ultra-bullish mentality, regardless of the circumstances, has made me question whether a trader can truly be successful being unbias in one’s market analysis, when all indicators that point to a bearish reversal wind up being null and void. Things to think about!

There are no scheduled economic reports to be released today.

Here are Today’s Trading Ideas

Potential Swing Trade (Long):  Barnes & Noble (BKS) – Since July of last year, this stock has been range bound, but of late, has begun to show some potential with a new trendline developing in the early stages. Its latest rally has been followed up by a pullback to the Fibonacci 50% retracement level. Also worth mentioning is the pattern of higher-highs and higher-lows that are in place. With that said, put your stop-loss at 18.95.

Click here to See the Rest of My Trading Ideas.

Potential Swing Trade (Long): Ugi Corp (UGI) – A very unexciting utilities stock, has nevertheless, put in three consecutive higher-higher and higher-lows and has recently bounced off of its 50-day moving average that it has continuously found support at or around. Place your stop-loss at 23.98.

Potential Swing Trade (Short): Suncor Energy (SU) – After a nasty downturn that began in early January, this stock has been unable to break its recent trend, despite the most recent light-volume rally of late. This stock is at a make-or-break point, if it rallies 1% or 2% this stock’s downtrend is no longer relevant. But if it reverses from its current price level, it could fall hard and fast. Place your stop-loss at 32.05.