The third trade in our “live trades” series reveals how I trade the rubber band oversold bounce setup.

It’s a fun setup. It’s a profitable setup. It’s also a commonly mistraded setup.

There are key mistakes traders are making when trying to catch oversold bounces; in today’s video I reveal exactly how to trade the rubber band setup profitably in 4 easy steps that focus on:

1. Extreme oversold levels
2. Key entry signals
3. Volume
4. Exit strategy

This is a live trade alerted to Swing Trade Report members seconds after entry. We have taken partial profits and moved our stops up to lock in big gains.  Once the “lotto” position is complete, I’ll update with another video.

Remember, our example is another in my series of live trade videos which makes it must watch: you’ll get into my head and see exactly how we plan and manage the trade as it develops. I’ll be back with another video on the exit.

This video is the third in the “Live” trading series.

Check out the first video to understand how $BRZU made our watchlist and the second video highlighting the gap down reversal trade in $NFLX. .

Remember, members of the swing service get all of these trade alerts intraday in real time.

This swing trading service is great for those that work and can’t monitor the computer all day. We have in-depth nightly reports on the game plan for the day/week, and all stock picks that I trade will be alerted and emailed to you.

Check out the Swing Service HERE

Follow me, Paul Singh AKA “TheMarketSpeculator” on Twitter or email me at SinghJD1@aol.com.

The post How to Swing Trade the Rubber Band Bounce Setup: UCO LIVE TRADE appeared first on Bulls on Wall Street.

Expect a very news driven week. This will make the trading difficult as rumors and news will be what makes the market move.

We have a fed meeting on Tuesday. This will be major as people will be cluing in to see if the fed can concoct something to save the markets and whether QE3 is on the table.

Europe looks like crap. My guess is they will buy spanish and italian bonds but thats just a stopgap to prevent full on contagion.  Spain is a pretty dang big country the now way anybody just has the money to bail them out.

Historially the odds tell us after such a death drop there will be a bounce and a nice one but we need to confirm through price action on shorter timeframes.  We cant just buy blindly.

capital preservation is key….i want a fully loaded gun for when i see the sign that its buytime.

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Happy fathers day folks. Interesting week in the markets we are right on key support levels. We finally got the test of the 200 day moving average in the S&P.  It seems the market is attempting to form a bottom here but so far we dont have any actual evidence to support that.  More then just the moving averages Im watching those March Low’s as my Get the F$%$ out of here moment in the market.  Here is the video for my review on the indexes for GLD, SLV, EEM, SPY, IWM, QQQ, XLE, USO, DIA, UUP, FXI.

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Why: As oil prices go up, demand for alternative fuel sources for automobiles also rises..(electric cars). This means Lithium.

Here is a chart of LIT (Lithium ETF vs USO).  You can see they generally move in lockstep.

However, there are not very many lithium companies worth playing on U.S. exchanges and the well known penny stocks don’t move well with oil – AMLN and AMEL.  These two generally suck and are only worth intraday scalps on big news.

Lithium One (LITHF) is an ok stock to trade against oil prices, but it’s so thinly traded that it’s risky and the volatility is through the roof.  However, if timed right with oil, it does offer nice returns. So, when it looks like oil is entering a big rally, LITHF might be something to look at for a day trade.

The best stock in this area is SQM – you might as well stick with the best if you’re interested in playing Lithium. SQM is a global company with it’s Lithium resources in Chile.  They mine year around and provide over 25% of the world’s supply.  They are also a leader in plant nutrition products and tons of other things.   If you’re looking for a swingable lithium play, this is the one.  Find a bottom/reversal in oil and that might be your entry for SQM.

The post Lithium and Oil – Quick Trade Idea appeared first on Bulls on Wall Street.

crazy action all week. what a way to start may!. end of april we reallied to highs but many of in the room were talking about how we werent goosing the returns out of the market you would think when market is at breakout. lot of stocks were lagging. i shold have seen that as a sign that there was trouble to come. (divergence).

we talked now for a month how commodities were a crowded trade. we saw this week the effects of what happee s when everyone leans the same way. the burst of all this selling put huge amoutn of pressure in the market as over this past 6 months they’ve econpassed so much of the trading in the stocks in the indexes.

right now we dont know if this pullback in those sectors is a gamechanger or not. will take a week or 2 to see what kind of bounce develops and the nature of that bounce.

economic data finally weighing on the market. with end of pomo and the data being so lackluster it is providing incredible headwind on the market.no longer are we beating estimates on this. we are start to see flatlining in the econonic data

earnings are so-so. not see the number of bigtime earnings breakouts that i saw last quarter.
all this is giving the market a noodle dic$ its flimsy and all over teh place. We had a huge potential trend day on friday and got taken down by a rumor spread by a no name newspaper

good market for scalpers and longerterm swingtraders that can survive a weeks wroth of ups and downs

very dicey for the shorterm swingtrader 1-4 day holds as you dont know where market is heading and the action between support and resisatnce is getting wild.

got to play defensive here. especially for smaller accounts. capital preservation is key. if your trading a 5-15k account most likely this type of environment will eat up capital as the intrady swings and gap downs slowly eat ur equity but the commisions start nailing u as there is a tendency to overtrade as its mostly a daytraders market as of this moment.

Use scale in strategy for swings..throw out a starter position let it marinate then add to it when you see a prime opportunity or get stopped out for loss. 4% loss on a 1/2 positions is really only 2% so no big deal.

lot of emails from people getting shaken out of plays. if thats the case and your are getting stopped out to only see ur position reverse then use smaller position and give your stock a little bit more rope so u dont get shaken. OR trade faster and take profits quicker.

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