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The stock market's health has improved. That means I have the green light to buy stocks that are forming quality trade setups. I’m primarily focused on contraction patterns right now. This is what I am scanning for and what the watchlist below is based on. You can read the full market health report here, which discusses why I am willing to buy.

There are lots of stocks on the watchlist this week. Now the challenge is to narrow it down to just a few trades (or to take more trades but with partial position sizes in each).

US Swing Trading Stock Watchlist

These are stocks I’m watching because they have the potential to trigger trades based on the contraction/triangle pattern strategy. This strategy, and others, are covered more in-depth in the Complete Method Stock Swing Trading Course, including how to scan and find trades.

178 stocks met the scan criteria. I have manually narrowed down the list to those included below. Last week’s scan criteria are on the right. I increased:

• Six-month return to >15.
• Price vs. 52-week low to >140.
• Price vs. 50-day average (%) >105.

Added This Week

• Enviva Partners (EVA) – This one is not a big runner typically. It needs to consolidate.
• RPC, Inc. (RES) – I've been looking at this one for just under a month.
• Xenon Pharmaceuticals (XENE).
• Gold Fields Limited (GFI).
• Weatherford International (WFRD) – This one is from the top recent performers list (not the scan).
• Peabody Energy (BTU) – This one has seen a pretty small second drop. It still needs to consolidate anyway.
• New Gold Inc. (NGD) – I am trying to not get greedy, as this has looked pretty choppy. This is from the top recent performers list (not the scan).
• Harmony Gold Mining (HMY) – This one is also from the top recent performers list (not the scan).
• MRC Global (MRC) – This one looks choppy and happy. It needs to consolidate.
• Teck Resources Limited (TECK) – This one needs to consolidate quickly (or wait). It looks to have a weird pattern already.
• Adecoagro S.A. (AGRO) – This stock needs to consolidate.
• Global Ship Lease (GSL) – This stock has squeezed.
• Continental Resources (CLR) – This one has angled up.
• A-Mark Precious Metals (AMRK) – This stock has also angled up.
• Patterson UTI Energy (PTEN).

From Last Week

• KBR, Inc. (KBR) – This has seen more of a sideways range than a contraction.
• Golden Entertainment (GDEN).
• Evoqua Water Technologies (AQUA) – This one displays a half cup-and-handle pattern. It has broken out and is still near the entry area.
• Star Bulk Carriers (SBLK) – This has seen one false start so far.
• PennantPark Investment (PNNT) – This stock broke out on Friday. It is not a big runner.

Canadian Swing Trading Stock Watchlist

There are 80 stocks on this list. I have narrowed it down to those included below. Last week’s scan criteria are on the right. I increased:

• Six-month return to >15.
• Price vs. 52-week low to >140.
• Price vs. 50-day average (%) >105.

Added This Week

• PHX Energy Services (PHXHF) – This could consolidate soon.
• Altius Minerals Corp. (ATUSF) – This may move and consolidate, it can be very choppy.
• Vermilion Energy (VET) – This may also move up and consolidate.

From Last Week

• InPlay Oil Corp. (IPOOF) – This one has more of a range than a contraction.
• Alpha Copper (ALCUF).
• Capstone Copper (CSFFF) – This still needs to move up and consolidate.
• Arizona Metals Corp. (AZMCF) – This one has angled up.
• Eloro Resources (ELRRF) – This one broke lower before triggering. It needs to recover to be valid.