Swing updates & SWN Energy Gap up Base & Break
Wow, well when I mentioned it being tough to swing trade in this market, I didn't expect it to be this tough.
ARD, SWN, & BIDU all pushed higher in early trade before they were hit with some pretty alarming distribution. I tightened my stops in a tiered fashion and as of this posting, I've been stopped out of all of those positions, aside from a little SWN that is left.
I didn't want to have to tighten my stops that much, but when you see a stock gap up or push much higher on strong volume early in the trade, only to lose almost all their early gains, or start falling into the red... you must be alert for a fake out &/or reversal, especially in a market like this.
Despite being stopped out for fairly marginal gains in each of the positions, I consider myself lucky to be in front of my screens and have the opportunity to tighten my stops.
I'll post updated charts of the swings in BIDU, ARD, & SWN later tonight, but here's the SWN Gap up Base & Break (also a HCPG watch list pick last night).
SWN was at the top of my watch list heading into this morning's open. I mentioned in my pre-market post that SWN was gapping up. Thankfully it gapped up and based right below the momentum number of $50.00 (May 21st & all time high).
This is just about the simplest and easiest setup you could ask for if you follow HCPGs style of trading.
Think about it for a second, a gap up is very bullish. In addition, the stock pauses briefly with a base right under a whole round momentum number of 50.
Here's the chart:
