The Best Stocks to Swing Trade (2019)
A couple weeks ago we noted the bearish market signal in the overall market. Since then, the market indices have given up about 6% of their value.
Just because we see a bearish market signal, however, does not mean we will necessarily see a large correction in the market. But the probability increases.
If we see a strong rebound quickly enough and if indices close above key moving averages, we move back to the bullish, more aggressive camp. In the meantime, we become much more selective when looking for a good long swing trading opportunity (while also looking for good shorts).
Top growth stocks with great long-term charts, a great track record of acting well out of bullish technical patterns are still on our radar.
If we see one with a great catalyst and powerful chart pattern, we will still trade it.
However, only the best ones.
The Best Stocks to Swing Trade in 2019
ROKU was one of those opportunities that made the top spot on our swing trading opportunity list a week and a half ago in the Weekly Alert.
ROKU has strong, consistent mid double digit growth with recent growth acceleration. This helps to separate it from the pack of growth plays.
Its also less affected by tariffs and the Fed. The trend of “cord cutting” is likely to continue or accelerate if the economy slows down a lot as it saves consumers money.
In our last video we talked about how ROKU was breaking strongly out of another great consolidation pattern pre-market the day it was published. This was after three powerful, clean moves out of bullish technical patterns earlier this year.
Entry/Exits on the ROKU Swing Trade
We jumped in on the break to new highs after hours last week, added at the open and then again once it reached another good technical entry point taught in the earnings eruptions course.
Within 3 days it reached our $134.70 price target. Nearly 20% from our initial entry within a few days. Its since pulled back a bit.
As with our other strategies, we give the stock just a little more room with our stop when market volatility is high. ROKU hit the first target and then pulled back a little lower than we would like to see. We gave it 1.5% below a key support level which worked out well.
Another good entry on ROKU would be a bullish candlestick pattern starting around the 50 day moving average. We had a similar entry earlier this year talked about in the Daily Alert.
After discussing it in the Daily Alert, ROKU surged another quick 20% higher within a week and a half.
The next opportunity off the 50 day moving average may take a while to develop on ROKU. This may correspond with the next uptrend developing in the overall market. We will watch it closely for clients in the Daily Alert.
Last Thursday we wrote about how TTD was gapping lower after hours which is not the best sign after an earnings beat and trade. We avoided trading TTD and focused on managing the ROKU trade instead which turned out well.
TTD reached the technical entry point, surged 3.5% quickly and then pulled back. On these weaker catalysts in a volatile market, we either avoid the trade or tighten up our stop.
Now that volatility has soared above key levels, we are avoiding most long trading setups except maybe a select few high, tight flag breakouts.
In this just published video, I talk about the current market conditions and how to avoid losses just by waiting for a key technical entry signal on the best opportunities.
(You can click the upper right-hand corner of the our new video players to see a full screen version.)
To learn what strategy we used on ROKU, you can check out the earnings eruptions course.
See our top swing trading opportunities we are eyeing for our own accounts