Swing Trading Stock Watchlist For The New Year

Happy New Year everyone. The stock market is still in good shape according to the market health indicators. Therefore, I am taking valid long trades as I see them.

S&P 500 outlook with market health indicators January 2

Here are the data points that matter currently, signaling the market is still healthy.

  • Nearly 84.35% of NYSE stocks are above their 50-day moving average (top indicator). That means lots of stocks in are uptrends — favorable for swing trading on the long side.
  • The blue bars show the daily rate of change in % (second from bottom). Price declines contain large single-day drops. Up periods are typically marked by much smaller daily movements, especially to the downside. We haven’t had any large drops of 2% or more (in a single day) since late October. When that indicator is quiet, it is a good sign.
  • The NYSE Advance-Decline Line at a high (bottom indicator) along with the S&P 500. This shows wide participation in the number of stocks advancing.

Additionally:

  • All the major indexes are performing well currently (not selective). This is good. IWM, the small-cap stocks index (purple), was a bit weaker than the other indexes over the last several days, yet the overall trajectory is up.
  • From a price action perspective, we are in an uptrend over the longer-term and shorter-term. The S&P 500 is attempting to break higher after moving sideways in December.

These are not predictions or forecasts. I simply use these indicators to determine what conditions are right now so I can determine how much of my capital I wish to deploy while swing trading. Right now, I am taking trades as they come.

Swing Trading Stock Watchlists

Here are the stock swing trading watchlists for Contraction Continuation Patterns for the US and Canadian markets as of January 2. Some of these stocks are forming imminent trading opportunities, while others could develop over the next week. Since the market is in an uptrend and pushing to new highs, the Contraction pattern is the main pattern in play currently (relative to other patterns I trade).

1 2
View single page >> |

Charts are provided by TradingView.

Disclaimer: Nothing in this article is personal investment advice, or advice to buy or sell anything. ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.