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Swing Trade Watchlist: Week of Oct 28, 2024

Welcome to Pullback University—your go-to guide for identifying top-tier swing trade opportunities for the upcoming week. This edition provides a breakdown of key sectors, ETFs, and individual stocks that show potential for profitable pullback trades. The analysis is based on insights from our weekly watchlist to ensure you’re ready to execute trades confidently.

Watchlist By Sector:

1. Financials Sector

  • ETFs to trade: XLF

  • Stocks to Swing Trade: Wells Fargo (WFC), Bank of America (BAC), and JPMorgan Chase (JPM) are primed for pullback entries.

  • Outlook: The financials sector is showing steady growth. Wells Fargo, Bank of America, and JPMorgan have been leading the pack, making them ideal picks for entry on pullbacks.

2. Technology Sector

  • ETFs to trade: XLK

  • Stocks to Swing Trade: Watch for pullbacks in Cisco (CSCO), Oracle (ORCL), Nvidia (NVDA), and Taiwan Semiconductor (TSM).

  • Outlook: Tech continues its bullish run, with Nvidia and TSM leading in momentum. Cisco and Oracle are also solid candidates. Wait for pullbacks in these stocks to catch potential upward moves.

3. Gold (Commodity)

  • ETFs to trade: GLD

  • Stocks to Swing Trade: Focus on GLD and Gold Futures (/GC) for pullback entries in the precious metals space.

  • Outlook: Gold remains in an uptrend, presenting steady swing trading opportunities. Manage entries carefully, especially in this crowded trade.

Weekly News

October 29: Earnings releases from GOOGL, V, AMD may drive tech sector volatility.
October 30-31: Earnings for MSFT, META, LLY, AAPL, AMZN, MA, and UBER. Economic data could create further market movement.
November 1: Watch earnings for BRK.A, XOM, and CVX

Pro Tips for the Week

  1. Don’t Chase Trades: Wait for pullbacks to enter positions. Jumping in early, especially on high-flying sectors, can expose you to higher risks.

  2. Focus on Options Liquidity: Avoid options with wide spreads. Only trade options with an open interest greater than 1000 contracts and manageable bid-ask spreads.

  3. Use Limit Orders: Minimize the use of market orders to avoid getting filled at unfavorable prices.

  4. Scale In and Out: Consider partial entries and exits to manage risk and optimize profits on volatile days.

  5. Check Sector Trends: Always confirm that the sector trend is aligned with your stock’s direction.

Summary of Top Stock Picks:

  • Wells Fargo (WFC): Steady growth in the financial sector; look for pullback opportunities.

  • Bank of America (BAC): Reliable for swing trades; wait for entry on a pullback.

  • JPMorgan Chase (JPM): Strong in financials; watch for a pullback.

  • Nvidia (NVDA): Bullish in tech; enter on pullbacks.

  • Taiwan Semiconductor (TSM): Positive momentum; wait for pullback entries.

  • Cisco (CSCO): Stable growth in tech; enter on pullbacks.

  • Oracle (ORCL): Consistent performer; look for a pullback entry.

  • GLD (/GC): Bullish trend in precious metals; proceed with caution.​

 

This concludes this week’s edition of Pullback University. As always, stay disciplined and stick to your trading plan. Let’s make this week profitable! 💰📈​

Disclaimer:

The information provided in this article is for educational and informational purposes only and should not be construed as financial or investment advice. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions. Trading and investing involve risks, including the loss of principal, and past performance does not guarantee future results. The author and publisher of this article are not responsible for any financial losses or damages incurred as a result of following the information provided.

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