Swing Trading Day 11b: 5 new Stock Picks

The 5 new stocks I added in my swing trading portfolio are DRYS, ACAD, STI, UAL and VVUS. I went long the first 4 stocks while VVUS was the only stock I could pick for short selling in a day that I lost count of uptrend breakouts! Maybe the next stock trading strategy I’m going to test would involve this kind of breakouts!

DRYS stock price is trading inside a slightly upward channel. Well defined support and resistance levels offer good entry points and I decided to buy DRYS stock instead of waiting to short-sell at the resistance level, due to the slightly upward slope.

ACAD stock on the other hand is clearly in an uptrend. The support level at $2.30 was confirmed twice and the new 5-day high that is printed today forced me to buy 300 ACAD shares, setting the stop loss right below the support level and the profit target at the resistance level for a possible 2-to-1 reward-risk trade.

Trading STI stock’s uptrend seems riskier. I use a much tighter stop loss and target a bigger than normal reward. Considerable resistance was met at $31 and I’ll need to monitor closely this one.

Deciding on buying UAL stock wasn’t that difficult, given the smooth 3-month uptrend that printed consecutive 60-70% pullbacks and new highs. Would the trend continue until UAL stock price returns to $25? I myself would be quite satisfied if the stock makes it at least to $21.5 once again for a 2-to-1 RR trade.

There is great potential for VVUS sellers. The gap down that took place in September and led to new lows, was filled in October and the downtrend’s resume looks promising. This short trade would be one of my biggest winners, if VVUS stock price plummets to $17.5 where I plan to trade out and make money in stock trading predicting downtrends.

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