As I write this, I looks like Joe Biden will win the election, but it has not been confirmed. The official result, and any controversies, will likely cause some volatility over the ensuing days. I am not jumping aggressively into stock swing trading right now, but I am looking for quality setups and will take one or two trades if they trigger me in (this equates to only using 20% to 30% of my available capital…as I typically have about 5 to 7 trades when I am fully loaded).
From a price action perspective, the S&P 500 is still in a correction, as is the Nasdaq 100. But there have been some positive developments
- The NYSE had back to back 80%+ upside days. That is typically a strong indication that the S&P 500 and DJIA are near a bottom, or have bottomed already.
- We also have seen an increase in the number of stocks above their 50-day moving averages, up to almost 59%.
- NYSE advance-decline is moving up and near highs.
Stock Swing Trading Watchlists
Be aware of earnings. Many stocks have earnings out soon. I don’t hold trades through earnings.
These are not buy recommendations. These are stocks that are possibly forming valid patterns based on the strategy articles above. Until they form a valid pattern, I don’t trade them. And even if they do form a valid pattern I may not trade them. As indicated, I will probably only buy one or two stocks once this election is over, assuming the market still holds up.
US Stock Swing Trading Watchlist
Most stocks on the list below still need to consolidate. So many are not fully formed patterns yet. Watching to see if they do fully form. Since conditions are still not ideal, I am not scanning as much. Therefore, I am including stocks that could potentially set up over the next week or two.
CELH – A bit rangey, and not so much contracting lately.
LL – Needs to tighten up more. This is a really big contraction (30%+ in height). Loose and big patterns tend to be topping patterns, not continuation patterns.
SGRY – Looking good. Needs to consolidate.
RBA – Big and loose. Not much contraction yet.
LB – Small contraction. Likely too early.
HUBS – Big and loose. Not much contraction yet.
DECK – Small contraction. Likely too early.
BBIO – Needs to consolidate near the highs of this range.
GH – Needs to consolidate. More contraction would be fine.
RLGY – Coming out of a downtrend. Looking decent.
MITK – Needs a consolidation at minimum, and more contraction would be nice.
Canadian Stock Swing Trading Watchlist
Most stocks on the list below still need to consolidate. So many are not fully formed patterns yet. Watching to see if they do fully form. Since conditions are still not ideal, I am not scanning as much. Therefore, I am including stocks that could potentially set up over the next 10 days or so.
ABR.V – Looking good.
DME.V – Broke out late Oct. Consolidating again just above the breakout point.
JAG.TO – Getting there.
DCBO.TO – Getting there.
ACQ.TO A bit rangey, and not so much contracting lately.
TBRD.V – Looking good.
NLC.V – Needs to contract more.
GRA.V – Looking ok.
HEO.V – Small pattern. May be too early. Prior contractions lasted months.
RBA.TO – Big and loose. Not much contraction yet.
AIF.TO – Messy looking.
To see how market analysis and the trading patterns all fit together into a seamless swing trading process, check out the totally free Stock Swing Trading Mini-Course. It provides all the swing trading information on the site, in order.
Cory Mitchell, CMT
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.