Saturday, May 12, 2007

Weekly Swing Trading Calls -- May 12, 2007

I am going to try a completely different approach: instead of focusing on very short time frame, I will try to develop a strategy for swing trade, meaning that the weekly chart will become the center of the trading analysis, and holding time frame will change from 1-3 days to 1-4 weeks.

On the major indices:

It is hard to be a bear in this market, but it might be even harder to be a full-charging bull at this stage. The bottom line is that this is a up-trending market, and until if is proven otherwise, buy-on-dip is arguably the most sound approach. The ideal buy zone would be the NASDAQ from 2498 (EMA50) to 2530 and SP500 from 1450 to 1470.

1. AFFX: S1, entry zone=26-26.8-28.6, stop just above 28.8, IT=23.

2. AMD: L1, entry zone=13-14, or when it closes above 15, IT=17.5.

3. COH: S1, entry zone=48-51, stop if it closes above 51,IT=44.

4. MOT: L1, entry zone=17.65-18.02, stop just below 17.3, IT=20

5. MU: L1, entry zone=11.75-12.02, stop just below 11, IT=14

6. NVDA: L1, entry zone=32.1-33.5, IT=38

7. SHLD: S1, entry zone=179-181, stop just above 183.5, IT=168

8. URBN: S1, entry zone=25.5-26.5, stop just above 26.7, IT=23

9. WSM: S2, entry zone=34.9-35.8, stop just above 36, IT=30.

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