TradingMarkets 5 Tech Stocks for Swing Traders
In the first hour of trading, stocks are riding high with the Dow up more than 130 points. This morning’s rally comes after three days of declines in the S&P 500 and Dow industrials took stocks to oversold levels.
Netlogic Microsystems Inc.
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PowerRating) Short Term PowerRating 9. RSI(2): 2.02
Bullishness early today likely will make it more difficult for swing traders to find the sort of pullback opportunities that will lead to winning trades in the short term. As I have written, when markets are moving higher, there are really two different “postures” that swing traders should adopt. These “postures” will help ensure that traders are on the right side of the market, allowing the underlying trend in the market and tendencies in the stock to do most of the work of both creating trading opportunities and providing optimal exits.
Maxwell Technologies Inc.
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PowerRating) Short Term PowerRating 9. RSI(2): 5.33
The first task for swing traders in rising markets is profit-taking. Swing trading at its best involves selling long trades into strength. While other traders rely on weakness to get them out of long trades — using such techniques as trailing lows, for example — our research has shown that for short term trading, relying on trailing lows to exit positions too often results in leaving precious gains on the table.
Tyler Technologies Inc.
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PowerRating) Short Term PowerRating 8. RSI(2): 4.30
Most traders’ experience bears this out. How many traders have seen a good trade become a great one and then a mediocre one simply because their exit strategy, essentially, guaranteed that they would be exiting on weakness because of the problem of waiting for stocks to make new lows before profits are taken?
FLIR Systems Inc.
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PowerRating) Short Term PowerRating 8. RSI(2): 5.14
The second task for swing traders in rising markets is to practice patience. Many of the stocks that are pulling back now will only pullback deeper when the advance in the broader market slows — or even reverses. Analyzing these stocks, paying particular attention to things like consecutive down days and levels of potential support, will make it all the more easy to make the tough trading decision when these the market inevitably becomes overbought, reverses and begins dragging these stocks even lower.
C&D Technologies Inc.
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PowerRating) Short Term PowerRating 8. RSI(2): 0.758
Of the five stocks in today’s report, three have Short Term PowerRatings of 8 and two have Short Term PowerRatings of 9. Our research into short term stock price behavior indicates that stocks with Short Term PowerRatings of 8 have outperformed the average stock by a margin of more than 8 to 1 after five days. Stocks with Short Term PowerRatings of 9 have outperformed the average stock by a margin of more than 13 to 1 after five days.
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