• Trading 101: Setups for the Week

    by  • February 19, 2013 8:12 am • Trading 101 with Peter Bryans • 0 Comments

    I’d like to begin posting some tickers that are on my watchlist each week, and show some charts with potential trading setups to help generate some ideas. Ideally, at the beginning of each week, I’ll have a list of tickers to write about and a chart with some commentary explaining what I am looking at and what may be potentially “actionable” material.

    Feel free to post in the comments section below if you have any stocks that you believe should be on one’s radar. It should go without saying that these are strictly ideas and not advice or trades that you should go out and make. For one, I firmly believe that taking someone’s idea, and following it exactly, is always a bad move. You absolutely have to learn how to trade on your own, with your own style, and on your own merit. What works for one person will not work for another.

    To keep it simple, the blue moving average is the 40-day and the red is the 195-day moving average—these are merely moving averages that I find useful. Take a look and good luck with the short week of trading.

     

    Navistar International (NAV)

    Rising 40-day moving average. Recently broke above $26 level. Still looks like a good long. Highly shorted stock.

    (courtesy of eSignal–click to enlarge)

     Cummins, Inc. (CMI)

    Looking for a move over $120.

    (courtesy of eSignal–click to enlarge)

    Monsanto (MON)

    Looking to make a new 52-week high. Big breakout last Friday on nice volume after a slight pullback.

    (courtesy of eSignal–click to enlarge)

    Safeway (SWY)

    Big moves on huge volume (marked by arrows). Bull flagging now (marked with trend lines). Look for a continued move higher. Technically speaking it looks good–look for shorts to continue to cover (SI/float is above 30%).

    (courtesy of eSignal–click to enlarge)

    About

    Peter Bryans joined the Schaeffer's Investment Research trading team as a Trader in April, 2012. A graduate of the Fisher College of Business at The Ohio State University -- where he concentrated in Finance -- Peter previously held internships with an insurance broker and a wealth-management firm. In his current role, Peter trades a variety of our real-time option services and also hosts our "Options Apprentice" weekly webinar presentations.

    http://www.schaeffersresearch.com

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