Swing Trade Ideas October 25

Tickers discussed: JOE KEYS BBY XRT AA  TECK GE OLN FUTU LUV

“Trades about to happen”  are objective, low-risk swing trade ideas with nearby triggers. Key levels, trade locations, and targets are provided for each set up with plenty of timely commentary to keep you on the right side of the trade.

What are “Objective, Low – Risk ”  Trade locations?

Central to my trading process is finding objective, low-risk trade locations. In essence, I want to find trade locations where there is a clean price level to shoot against and where a violation of that line clearly shows me when I am wrong.  The low-risk part of the equation is to take a trade close enough to the price level that the reward ( Target )  is at least 3x the risk.  Typically this means shorting into resistance, going long at support, going long a breakout, going short on a breakdown etc.

I’ve set these up in a fast read format so specific strategies have been left to you. I am an option trader but I know many are not. If you have a question or need additional input for any of these ideas, please reach out; glad to help.

Lastly, please double check the earnings date date prior to taking any position. Depending on your process you may or may not want to hold through earnings.

Companion Video

In the 16min video, I walk through each trade and give added commentary around each idea.   

Find the video   HERE

Trades about to Happen

$JOE – St Joe  

Find the separate write up and video on the stock HERE

$KEYS – Keysight

Powerful set up on the weekly chart of KEYS.  Note the PPO has reset and broken out above the zero line and RSI has also broken above down trend resistance.  A weekly close above $110 and the name has room to run.  Rough targets are $130 – $140.

$BBY – Best Buy and $XRT  Retail ETF

Both tickers have the same set up as price broke out and then have both recently back-tested their breakout levels. Both have 20ema support coinciding with their respective breakout levels.

BBY – I like it long against $115.

XRT – I present the XRT as an option because if you like the retail sector as a whole XRT is a great way to take a position and then hold through the various earnings reports without the single stock risk of holding a single name through earnings.  I like it long against $53

$GE – General Electric

While $GE won’t be confused with any momo , high flyer, the chart is shaping up with the break above the 200ema for the first time in a year. PPO is building and headed in the right direction coupled with RSI at near 52 week highs.  If price back tests the 200ema at $7.50 it sets up as a tight long where you could set a stop just below the 200ema and then look for a move to $8.50.  Above $8.50 the volume / price resistance really falls away and I think price would have a short at reaching $10.75 where more substantial resistance will be encountered.

$TECK – TECK Resources

Resource plays are hot at the moment as the reflation trade takes hold.  I presented TECK as a long idea just the other day and I think it is still valid. The bull flag measured move puts price up towards $17.50.  One overlooked fundamental driver for TECK is the fact that they took a 60% stake in the OB2 copper mine in Northern Chile as of Jan 2020. The OB2 mine is a rich copper deposit and has an ultra low cost of production.  As Copper prices surge, TECK stands to receive a healthy earnings stream from this asset.  I like TECK long. Depending on your time horizon you can set your stop accordingly.

$AA – Alcoa

Another resource – centric name. Alarm $14. If price can break above downtrend resistance and the 200ema above $14, I think there is a great chance price finds $16. Above $16 is a big volume / price void where price could move quickly to find $20.

$OLN – Olin Corp

Chemical maker Olin is at it’s pivot point on the Weekly Chart. A break above $18 put price on the “right side” of the chart.  On a break above $18 i like the idea of anchoring a long position against $18 w/ a stop just below and look for $23 as a first price objective.

$FUTU– FUTU Holdings

$34 marks the high side of the value range. Alarm $34 for a breakout. A move above $34 clears a path for a test of the prior high at $40. I like that price is trading above all the emas and that the posture of both RSI and PPO are supportive of higher prices.

$LUV – Southwest Airlines

I saved the best for last. A beautiful cup n handle set up right out of the TA Textbooks with a well-defined neck-line at $43.  But to me what is most exciting about the set up is the big $10 air pocket between $43 and $53 where lateral resistance is almost non-existent. The cup n handle measured move projects a target at $58 but I’d be more than happy with a fast $10 move to $53. How ’bout you?  Alarm $43. Get long on a breakout above.

Pulling it all together

Lots of nice set up’s here for you to consider here.  All are objective and low-risk in my view.  Low risk meaning you can place a stop near by and you will know exactly when / if you’re wrong.  That doesn’t mean you go firing off 10 trades at the bell tomorrow morning.  Be selective and consider your present holdings.  Market vol is high and with the election a week out its probably not the best time to be maxed out on positions.  Only take trades you can manage well.

 

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