Ryan Mallory, of SharePlanner.com, points out the definitive momentum in the markets on Monday, he shares the particular major price levels he’ll now be watching, and several long positions to be had on his list of bullish swing trade setups.
Some Solid Momentum Out There in the Market Monday
Though I wouldn't say Monday was a day where the bears were being significantly squeezed, they still had to ask themselves how high this bounce could go and will it wipe out the profits that they have made over the past few weeks.
The bounces are where the bears get into trouble because they hate liquidating their positions and, instead, they convince themselves that they can hold through any bounce the market may throw their way, when in reality, they should be covering into weakness, not in the absence of it.
With that said, I am watching a few major price levels going forward: the first is 1898 on SPX and the second is 1920. Holding past 1920 will be difficult for me to do as it could represent the pinnacle of a dead cat bounce and for that, I'm not willing to roll the dice on the assumption that we will break through that price level. In the meantime, there are definitely some long positions that can be had on the list below of my bullish swing trade setups that I am currently following.
Here's the Bullish List of Swing-Trade Setups:
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By Ryan Mallory, Founder, SharePlanner.com
