The stock market is good health overall, so I am willing to take swing trades when nice setups trigger a trade. You can see the recent analysis of stock market health here.
It is still earnings season, so be alert for that. I don’t typically hold swing trades through earnings.
I am currently focusing on trading contraction breakouts. Some of these contraction breakouts are occurring from larger cup and handle patterns due to the recent price decline and then rally back toward the highs in the many stocks.
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Here are some examples of recently closed trades from the watchlists.
Great pattern on VRTV above. Got out before earnings for a 12% gain and 2.6:1 reward to risk. The original target was a 24% target which was hit the day after on earnings.
Profit target hit on AQUA for a near 11% gain and 3.36:1 reward:risk.
TDC was an example of a loss. 3.9% price drop triggered the stop loss. Was going for about a 19% target or about 4.75:1 reward:risk.
GRA, on the Canadian side, was a nice one that hit a 5:1 target for a 24.6% gain.
Got into ECN (Canadian), but had to get before earnings. Stock was down 0.57% on exit.
Swing Trade Stock Watchlist for Week of Nov. 16 (and beyond)
This is NOT a buy list. It is simply a list of stocks that are forming contraction patterns. I then watch these stocks to see if they form valid entries. Also, since I can’t trade all the stocks on the list (if they were to all trigger), I pick the ones I like best from the list and place orders in those.
There are lots of companies reporting earnings! Know the earnings date before taking any trades.
Lots of the stocks on the list this week. Filter it down using the criteria discussed in the course.
I kept the criteria the same this week, because I had time to scan through all the stocks, but really the 6-month return should be boosted to >20% (or so). The S&P 500 is up nearly 13% in the last 6-months, and we want to trade stocks that are much stronger than that. All the stocks listed below are up more than 20% in the last 6-months, so making that change just cuts down on the scan time/number of stocks to look through.
US Swing Trading Stocks Watchlist
141 stock met the scan criteria on the right. There were 140 last week.
PANW – earnings Nov. 18
BJ – earnings Nov. 18. Pattern very angled up. Would maybe only trade this after earnings if they are really good.
VSTO – this one actually had a trigger back in mid-Oct, but would have had to get out for earnings. Watching for consolidation near highs for another possible trigger. Pattern extends back to July.
DSKE – a little flat the last 13 months, but nice contraction.
URG – would like it if this tightened up more.
From last week‘s list:
CCJ – Just a channel up and at the top? Also big pattern. Will probably leave it alone but want to see how it plays out.
TTM – gappy
ZWS – looking for consolidation near highs.
NXE – big pattern. Needs to move back up and form a higher pattern from Oct. 15ish onward.
AR – needs to move back up and consolidate quickly
SE – earnings Nov. 16. Has to move back up and consolidate.
EVRI – continue moving up and consolidate
Canadian Swing Trading Stocks Watchlist
110 stocks met the scan criteria on the right. 99 last week.
JOSE.TO – less than a month current. Earnings Nov. 15
FSY – earnings Nov. 16
From last week’s list:
NXE.TO – big pattern. Needs to move back up and form a higher pattern from Oct. 15ish onward.
GLO.TO – would like to see that volume cool off a bit. Also big pattern.
URE.TO – high volume, needs to cool
SYH.V – bigger pattern
CCO.TO – Just a channel up and at the top? Also big pattern. Will probably leave it alone but want to see how it plays out
PRYM.V – from the list a couple of weeks ago. Had a breakout (non-valid entry) on Oct. 26 that failed. It is now consolidating again.
TOU.TO – from the list a couple of weeks back. Breakout, but has moved back to near entry area.
EU.V – bigger pattern
TMC.V – weird, but very tight.
ECN.TO – big volume and big consolidation currently. Needs to tighten up.
By 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. I may take positions in some of these stocks as they trigger, but I can’t trade them all. Which stocks I trade wwill depend on conditions at the time, risk/reward, stock strength, and other factors.