These are stocks I’ll be monitoring over the next week to form valid patterns and potentially trigger a trade. I am currently scanning for and trading continuation contraction patterns.
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Before getting to the potential swing trades for this week, let’s look at the overall health of the market.
Stock Market Health Check for Swing Trading
I am taking valid long trades as I see them. I am seeing good movement in individual stocks names on my scan list, and still getting favorable movement out of my current trades.
Charts provided by TradingView.
Here are the market health indicator statistics…
- More than 73% of S&P 500 stocks are above their 50-day moving average (top indicator). That means lots of stocks in uptrends—favorable for swing trading on the long side. More than 85% of all US stocks are above their 50-day moving average (orange line on top indicator).
- The blue bars show the daily rate of change in % (second from bottom). Price declines contain large single-day drops. We had two large single-day drops toward the end of January. The S&P 500 has since moved to a new high, and downside moves have dissipated. This indicator is no longer giving us any warning signs.
- The NYSE Advance-Decline Line (bottom indicator) is at a new high as the S&P 500 hit a new high today. This shows wide participation in the number of stocks advancing.
- All the major indexes are performing well currently (not selective). This is good. The S&P 500, Nasdaq 100, Russel 2000, and S&P 500 are all right near their highs.
- From a price action perspective, we are in an uptrend over the longer-term and shorter-term.
US Swing Trading Watchlist
367 stocks on the scan list. I sorted by 1- year performance, and then only looked at the strongest 250 stocks to save some time, and there were still loads of candidates.
DFIN – Recently broke out. Still near the entry area.
MDB – Recently broke out. Still near the entry area.
ZS – Recently broke out. Still near the entry. Second drop was a tiny big bigger than first. But nice recovery. Everything else valid.
CVNA – Recently broke out. Still near the entry area.
PDD – Contracting. Consolidating.
BEEM – Contracting. Consolidating.
CHWY – Contracting. Consolidating.
RYAM – Contracting. Consolidating.
DOMO – Contracting. Consolidating.
PLUG – Contracting. Consolidating. Just under the one-month minimum contraction time.
NIO – Contracting. Near top of pattern.
PTON – Contraction. Needs a move up and consolidate.
AR – Contracting. Near top of pattern. Contraction is just under one-month minimum.
MIK – Contracting. Consolidating. Just under the one-month minimum requirement.
GP – Contracting (since Jan. 6). Odd Pattern
FRHC – Contracting. Starting to consolidate. Consolidating is big compared to prior consolidations in the advance. Odd pattern.
Canadian Swing Trading Watchlist
176 stocks on the scan list, reduced to those below.
ACQ.TO – Broke out. Still in the entry area.
AJX.V – Contracting. Consolidating.
BZ.V – Contracting. Consolidating
HIVE – Contracting. Near top of pattern.
NNO.V – Contracting. Near top of pattern.
ARS.V – Contracting. Near top of pattern. Just under the one-month minimum requirement.
GGD.TO – Contracting. Near top of pattern. Odd pattern.
GPV.V – Contracting. Watching the small contraction since Jan. 6. More of a cup and handle. Odd pattern.
GRN.V – Contracting. Needs to move up and consolidate.
Cory Mitchell, CMT
Want to learn how to scan for and trade these patterns? Know which ones to trade and which ones to leave alone? Learn this strategy and others in the Complete Method Stock Swing Trading Course.
Disclaimer: Nothing in this article is personal investment advice, or advice to buy or sell anything. Trading is risky and can result in substantial losses, even more than deposited if using leverage.