Stock futures are slightly down this morning after an incident in Russia over the weekend. Last week the Dow fell 2%, the S&P 500 and the Nasdaq dropped 1.8% and 2%, respectively. Price action declines are necessary for swing trading as they provide opportunities for potential set-ups, however it also provides less opportunities in the present. This is why we have less stocks on the Horizon and < 200 stock list this morning.
On the other side, my list of stocks with beaten down price action has grown substantially. On the paper trade portfolio, we still have ABT which close right at the upper Bollinger band. Support will be at the 50 and resistance found around 109.70. the 9 and 20 day moving averages had a positive crossover of the 200-day SMA and all the oscillators are still positive. As of Friday’s close, this position has provided the paper trade portfolio with an unrealized gain of $2.16 / share.
KO closed down on Friday just above the cost basis after finding resistance at the upper Bollinger band. Support is at the 20. The RSI is below 50 and there is a slight rollover of the Stochastic. Stops should be utilized to reduce potential losses and defend your gains based on your risk tolerance.
There are not many quality set-ups this morning so we are going to manage the positions we already have. This is a time for patience. There are quite a few stocks with price action downtrends which at some point will provide a reversal and set-ups for potential swing trades in the future. Let the market work for you.
Have a great day! This information is for educational purposes and not a recommendation to buy or sell a stock.
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