Chart of the day: CALA

CALA is a biotech stock that has shown some buying interest while in the midst of a down trend. The recent volume surge has the stock over it's 50 dma, which could start a remount and give it the momentum it needs to make a short term run. This is a speculative setup.
  
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Chart of the day: DIG

Today's swing trade stock chart of the day is DIG.  Energy is showing positive money flow and the sector has broke out over the 50 day moving average. Here we can place a stop under the moving average with a target at the recent February pivot high at $57.

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I will wait for a slight pullback from this level to attempt to get better value, though this is risky as the stock could move from here.

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Chart of the day: GTLS

We have been swing trading the bottoming formation in commodities since December and now the formation has matured to the start of a possible trend move.

GTLS is a good example of a commodity stock ready to start a momentum trend.  It looks to have put in a bottom formation on strong volume and now is working hard to remount the 50 dma.  Once this level clears a measured move to $45 is in play in the coming months.

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How to identify explosive bottom formation breakouts

Every momentum stock starts from a bottom formation breakout.  Back in November we started talking about Gold Miners as a potential bottom formation trade.  

Study this chart carefully and notice the positive volume as gold miners put in a bottom formation, the remount of the 50 dma and successful hold on pullback.  

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How to Identify and Trade A Market Short Signal

Swing traders need a basket of "goto" setups that can be applied to different markets.  Two of my favorite are the breakout-remount and the breakout failure.  Mr. Market, aka SPY, offered us a little of both a few days ago with a remount that failed.

Notice in the chart above SPY has remounted the 50 dma, then two days later closed hard below it.  Over at BullsonWallstreet, hat was our signal to get short.  So far so good, with SPY continuing the breakdown toward the 200 day moving average.  That is our target, where we will look to at least take partial profits.

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How to trade the gold miner stock bottom formation breakout

Swing Traders must be vigilant about sector rotation and money flow.  Back in early December we started talking about gold miners as a bottom play in the Trade Report.  Notice that as gold miners were at lows, positive volume outweighed negative.  This was a clear signal that "big money" players were accumulating positions in this sector.  That's what we call positive money flow.

There were two great spots to play this sector.  First, a low risk trade was available on the second leg of the late December bottom retest.  Second, where we played it, on the remount of the 50 day moving average.  Now that the stock has exploded, we can weight for the inevitable pullback for another trade entry.

Unless we get clues to the contrary, gold miners is the sector to watch for 2015.

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Stock Chart of the Day: ZU

Trade Report focus list stock ZU broke out of a post moving average remount breakout range on strong volume.

This stock has been showing signs of accumulation even before remounting the moving average. This underlying volume support should help propel the stock to recent highs around $42.  I will look for a good entry on weakness.

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