Day Trading S&P 500 Stock Picks for 11-16-2010

My stock picks for day trading today include XOM, RF, CHK, X and CVS stocks. They are mostly short selling picks and the alerts are based on possible upcoming breakouts. Since the [intlink id=”992″ type=”post”]S&P 500 Index[/intlink] has reached a resistance level, I would be looking to make money from declining stocks, rather than looking for reversal formations. Although by catching a reversal you can make a lot of profit, I prefer safer day trading and can’t go that wrong by following the trend combined with breakouts.


My first stock pick is XOM stock. During the last two days the stock price has been retracing after the high peak at almost $72. I guess one of the reasons is part of stock news about the XOM stock, informing that militants attacked offshore Exxon Mobil rig yesterday. As the stock price hit twice the support level at 70.40 yesterday, I highly expect a breakout below that price today. I wouldn’t be surprised if that happened on the opening of the US stock market. My stop loss will be set right above the high of the candlestick that breaks the support level and can’t really set a target profit for day trading, while the most recent resistance level in the uptrend of the XOM stock was around $67 upon looking to the daily stock graph. I would be looking to trade out at a Fail Bottom formation or a Double Bottom or an exhaustion bar in the 3-min or 1-min graph.


My second stock pick is CHK stock. The stock price has failed to climb to new highs in the daily graph and has taken a beating yesterday. On the other hand the stock news over at MarketWatch imply that that the Natural Gas might be ready for a turnaround and suggest Chesapeake Energy Corp as a potential investment. The MACD divergence at the 10-min stock graph also strengthens such a claim, but I would be looking for a breakout below 22.25 for some fast profits. Again the same rule for stop loss applies, but this time I won’t be expecting a big movement rather than trading out at the first sign of buyers taking over.


X stock is my third stock pick for short selling. The S&P 500 stock is trending sideways the last months according to the daily graph and has verified the upper level of the trending channel a week ago. Now as the stock is expected to go south towards the bottom side of the channel, I am looking for a breakout of support levels in 10 and 3-min graphs. There were some stock news about US Steel Corp and the Federal Court some hours ago and I’m guessing that would push the prices down today, although steel stocks still trading cheap according to WallStNation.


CVS stock is my next stock pick which also is a candidate for a declining breakout. The CVS stock has a support level at 30.00 but according to stock news it might be good time to buy the stock, depending on the 50-day moving average and strong support level at 30.00. I can’t predict such a price movement but I’ll be waiting to short sell the stock, in case the support level is broken in the 10-min graph. Should that happen, it’s very possible many day traders and investors would close positions and short sell.


My final stock pick for today is RF stock. The stock news about the Regions Financial Corp are mostly favorable. Regions may sell EpiCentre loan and highlights the stock as the price has fallen by 22% since George Soros bought RF shares. has also picked RF stock as a hot stock. Now depending on what the stock price does today I might be short selling or buying some shares. It all comes down which way the breakout will happen. If the stock price rises above 6.30, I would be entering long. If the price falls below 6.08 a major support level would have been broken, since 6.08 is this year’s lowest low for the RF stock price. Allow the market to speak for itself before entering a position.